**SECURITIES      & EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-K**

**[X]**
**Annual      report pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934**

**[        ] Transition report pursuant to Section 13 or 15(d) or the Securities Exchange      Act of 1934**

**HOME      FEDERAL BANCORP**

**                                                                                              Indiana**
**35-1807839**

**                            501      Washington Street, Columbus,      Indiana**
**47201**

**(812)      522-1592**

**None**

**Common      Stock, no par value**

**[x]**

**[x]**

**[x]**

**[x]**

----

**[x]**

**[x]**

----

|                                        | **HOME                  FEDERAL BANCORP**                                                                                                       |     |
|---------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                        |                                                                                                                                            |     |
|                                        | **FORM                  10-K**                                                                                                                  |     |
|                                        |                                                                                                                                            |     |
|                                        | **INDEX**                                                                                                                                       |     |
|                                        |                                                                                                                                            |     |
| Forward                  Looking Statements | 4                                                                                                                                               |
|                                        |                                                                                                                                            |     |
| Item                  1.                    | Business                                                                                                                                        | 4        |
|                                        |                                                                                                                                            |     |
| Item                  1A.                   | Risk                  Factors                                                                                                                   | 28       |
|                                        |                                                                                                                                            |     |
| Item                  1B.                   | Unresolved                  Staff Comments                                                                                                      | 29       |
|                                        |                                                                                                                                            |     |
| Item                  2.                    | Properties                                                                                                                                      | 30       |
|                                        |                                                                                                                                            |     |
| Item                  3                     | Legal                  Proceedings                                                                                                              | 32       |
|                                        |                                                                                                                                            |     |
| Item                  4.                    | Submission                  of Matters to a Vote of Security Holders                                                                            | 32       |
|                                        |                                                                                                                                            |     |
| Item                  4.5                   | Executive                  Officers of Home Federal Bancorp                                                                                     | 32       |
|                                        |                                                                                                                                            |     |
| Item                  5.                    | Market                  for Registrant's Common Equity, Related Stockholder Matters, And                  Issuer Purchases of Equity Securities |  32 |
|                                        |                                                                                                                                            |          |
| Item                  6.                    | Selected                  Financial Data                                                                                                        | 33       |
|                                        |                                                                                                                                            |     |
| Item                  7.                    | Management's                  Discussion and Analysis of Financial Condition and Results of  Operations                                    | 33       |
|                                        |                                                                                                                                            |     |
| Item                  7.A                   | Quantitative                  and Qualitative Disclosures About Market Risk                                                                     | 33       |
|                                        |                                                                                                                                            |     |
| Item                  8.                    | Financial                  Statements and Supplementary Data                                                                                    | 34       |
|                                        |                                                                                                                                            |     |
| Item                  9.                    | Changes                  in and Disagreements with Accountants on Accounting and FinancialDisclosure                                            |  34 |
|                                        |                                                                                                                                            |     |
| Item                  9A.                   | Controls                  and Procedures                                                                                                        | 34       |
|                                        |                                                                                                                                            |     |
| Item                  9B.                   | Other                  information                                                                                                              | 34       |
|                                        |                                                                                                                                            |     |
| Item                  10.                   | Directors                  and Executive Officers of the Registrant                                                                             | 34       |
|                                        |                                                                                                                                            |     |
| Item                  11.                   | Executive                  Compensation                                                                                                         | 35       |
|                                        |                                                                                                                                            |     |
| Item                  12                    | Security                  Ownership of Certain Beneficial Owners and Management and Related                  Stockholder Matters                |  35 |
|                                        |                                                                                                                                            |     |
| Item                  13.                   | Certain                  Relationships and Related Transactions                                                                                 | 35       |
|                                        |                                                                                                                                            |     |
| Item                  14.                   | Principal                  Accountant Fees and Services                                                                                         | 36       |
|                                        |                                                                                                                                            |     |
| Item                  15.                   | Exhibits                  and Financial Statement Schedules                                                                                     | 36       |
|                                        |                                                                                                                                            |     |
| Signatures                                  |                                                                                                                                            | 37       |

----

**FORWARD      LOOKING STATEMENTS**

**PART      I**

**Item      1.**
**Business**

**General**

----

----

| **Lending                  Activities**                                                                                                                                                                                                                                                                                            |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|-----------------------------------|--------|-----------------------------------|--------|-----------------------------------|---------|------------------------------------|--------|-------------------------------------------------------------------|--------|------------|---------|-------------|--------|------------|--------|-------------|---------|------------|--------|-------------|--------|
|                                                                                                                                                                                                                                                                                                                               |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |
| **Loan                  Portfolio Data**                                                                                                                                                                                                                                                                                           |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |
|                                                                                                                                                                                                                                                                                                                               |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |
| The                  following two tables set forth the composition of HomeFederal Bank's                  loan                  porfolio by loan type and security type as of the dates                  indicated. The third table represents a reconciliation of gross                  loans                  receivable after |   |                              |
| consideration                  of undisbursed portions of                  loans in process, deferred loans, and the allowance for loan                  losses.                                                                                                                                                                   |   |                              |
|                                                                                                                                                                                                                                                                                                                               |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |
|                                                                                                                                                                                                                                                                                                                               |   | **Dec                  31, 2005** |    | **Dec                  31, 2004** |   | **Dec                  31, 2003** |   | **Dec                  31, 2002** |    | **June                  30, 2002** |   | **June                  30, 2001**                                |   |
|                                                                                                                                                                                                                                                                                                                               |   | **Amount**                        |    | **Percent**                       |   | **Amount**                        |   | **Percent**                       |    | **Amount**                         |   | **Percent**                                                       |   | **Amount** |    | **Percent** |   | **Amount** |   | **Percent** |    | **Amount** |   | **Percent** |   |
| **TYPE                  OF LOAN**                                                                                                                                                                                                                                                                                                  |   |                              |    |                              |   |                              |   |                              |    |                               |   |                  **(Dollars                  in Thousands)** |   |       |    |        |   |       |   |        |    |       |   |
| First                  mortgage loans:                                                                                                                                                                                                                                                                                             |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |
| One-to-four                  family residential loans                                                                                                                                                                                                                                                                              |   | $                                 | 161,936 |                              |   | 25.7                              | %      | $                                 | 172,738 |                               |   | 26.1                                                              | %      | $          | 178,159 |        |   | 27.0       | %      | $           | 195,255 |       |   | 29.9        | %      | $ | 214,565 |   |   | 32.6 | % | $ | 270,124 |   |   | 38.2 | % |
| Commercial                  and multi-family                                                                                                                                                                                                                                                                                       |   |                              | 177,748 |                              |   | 28.3                              | %      |                              | 180,175 |                               |   | 27.2                                                              | %      |       | 171,397 |        |   | 25.9       | %      |        | 183,369 |       |   | 28.1        | %      |   | 172,495 |   |   | 26.2 | % |   | 153,169 |   |   | 21.6 | % |
| Loans                  on property under construction                                                                                                                                                                                                                                                                              |   |                              | 57,161  |                              |   | 9.1                               | %      |                              | 84,655  |                               |   | 12.8                                                              | %      |       | 94,431  |        |   | 14.3       | %      |        | 63,017  |       |   | 9.6         | %      |   | 54,639 |   |   | 8.3 | % |   | 67,789 |   |   | 9.6 | % |
| Loans                  on unimproved acreage                                                                                                                                                                                                                                                                                       |   |                              | 1,615   |                              |   | 0.3                               | %      |                              | 2,730   |                               |   | 0.4                                                               | %      |       | 3,201   |        |   | 0.5        | %      |        | 2,795   |       |   | 0.4         | %      |   | 4,712 |   |   | 0.7 | % |   | 5,017 |   |   | 0.7 | % |
| Second                  mortgage, home equity                                                                                                                                                                                                                                                                                      |   |                              | 87,893  |                              |   | 14.0                              | %      |                              | 80,346  |                               |   | 12.2                                                              | %      |       | 80,044  |        |   | 12.1       | %      |        | 80,274  |       |   | 12.3        | %      |   | 85,819 |   |   | 13.0 | % |   | 94,140 |   |   | 13.3 | % |
| Commercial                  loans                                                                                                                                                                                                                                                                                                  |   |                              | 105,827 |                              |   | 16.8                              | %      |                              | 105,495 |                               |   | 16.0                                                              | %      |       | 99,085  |        |   | 15.0       | %      |        | 90,063  |       |   | 13.8        | %      |   | 86,435 |   |   | 13.1 | % |   | 74,687 |   |   | 10.5 | % |
| Consumer                  loans                                                                                                                                                                                                                                                                                                    |   |                              | 3,814   |                              |   | 0.6                               | %      |                              | 4,157   |                               |   | 0.6                                                               | %      |       | 4,221   |        |   | 0.6        | %      |        | 4,681   |       |   | 0.7         | %      |   | 4,535 |   |   | 0.7 | % |   | 5,864 |   |   | 0.8 | % |
| Auto                  loans                                                                                                                                                                                                                                                                                                        |   |                              | 27,335  |                              |   | 4.4                               | %      |                              | 24,921  |                               |   | 3.8                                                               | %      |       | 23,244  |        |   | 3.5        | %      |        | 25,149  |       |   | 3.8         | %      |   | 25,355 |   |   | 3.9 | % |   | 25,852 |   |   | 3.6 | % |
| Mobile                  home loans                                                                                                                                                                                                                                                                                                 |   |                              | 2,537   |                              |   | 0.4                               | %      |                              | 3,289   |                               |   | 0.5                                                               | %      |       | 4,365   |        |   | 0.7        | %      |        | 5,834   |       |   | 0.9         | %      |   | 6,625 |   |   | 1.0 | % |   | 8,308 |   |   | 1.2 | % |
| Savings                  accounts loans                                                                                                                                                                                                                                                                                            |   |                              | 2,266   |                              |   | 0.4                               | %      |                              | 2,340   |                               |   | 0.4                                                               | %      |       | 2,736   |        |   | 0.4        | %      |        | 3,018   |       |   | 0.5         | %      |   | 3,092 |   |   | 0.5 | % |   | 3,738 |   |   | 0.5 | % |
| Gross                  loans receivable                                                                                                                                                                                                                                                                                            |   | $                                 | 628,132 |                              |   | 100.0                             | %      | $                                 | 660,846 |                               |   | 100.0                                                             | %      | $          | 660,883 |        |   | 100.0      | %      | $           | 653,455 |       |   | 100.0       | %      | $ | 658,272 |   |   | 100.0 | % | $ | 708,688 |   |   | 100.0 | % |
|                                                                                                                                                                                                                                                                                                                               |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **TYPE                  OF SECURITY**                                                                                                                                                                                                                                                                                              |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential:                                                                                                                                                                                                                                                                                                                       |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four                  family                                                                                                                                                                                                                                                                                                |   | $                                 | 271,135 |                              |   | 43.1                              | %      | $                                 | 277,095 |                               |   | 41.9                                                              | %      | $          | 280,942 |        |   | 42.5       | %      | $           | 293,886 |       |   | 45.0        | %      | $ | 320,256 |   |   | 48.6 | % | $ | 388,770 |   |   | 55.0 | % |
| Multi-dwelling                  units                                                                                                                                                                                                                                                                                              |   |                              | 19,612  |                              |   | 3.1                               | %      |                              | 27,018  |                               |   | 4.1                                                               | %      |       | 22,034  |        |   | 3.3        | %      |        | 22,767  |       |   | 3.5         | %      |   | 29,640 |   |   | 4.5 | % |   | 34,008 |   |   | 4.8 | % |
| Commercial                  real estate                                                                                                                                                                                                                                                                                            |   |                              | 193,991 |                              |   | 30.9                              | %      |                              | 213,801 |                               |   | 32.3                                                              | %      |       | 221,055 |        |   | 33.5       | %      |        | 205,262 |       |   | 31.4        | %      |   | 177,622 |   |   | 27.0 | % |   | 162,444 |   |   | 22.9 | % |
| Commercial                                                                                                                                                                                                                                                                                                                         |   |                              | 105,827 |                              |   | 16.8                              | %      |                              | 105,495 |                               |   | 16.0                                                              | %      |       | 99,085  |        |   | 15.0       | %      |        | 90,063  |       |   | 13.8        | %      |   | 86,435 |   |   | 13.1 | % |   | 74,687 |   |   | 10.5 | % |
| Mobile                  home                                                                                                                                                                                                                                                                                                       |   |                              | 2,537   |                              |   | 0.4                               | %      |                              | 3,289   |                               |   | 0.5                                                               | %      |       | 4,365   |        |   | 0.7        | %      |        | 5,834   |       |   | 0.9         | %      |   | 6,625 |   |   | 1.0 | % |   | 8,308 |   |   | 1.2 | % |
| Savings                  account                                                                                                                                                                                                                                                                                                   |   |                              | 2,266   |                              |   | 0.4                               | %      |                              | 2,340   |                               |   | 0.4                                                               | %      |       | 2,736   |        |   | 0.4        | %      |        | 3,018   |       |   | 0.5         | %      |   | 3,092 |   |   | 0.5 | % |   | 3,738 |   |   | 0.5 | % |
| Auto                                                                                                                                                                                                                                                                                                                               |   |                              | 27,335  |                              |   | 4.4                               | %      |                              | 24,921  |                               |   | 3.8                                                               | %      |       | 23,244  |        |   | 3.5        | %      |        | 25,149  |       |   | 3.8         | %      |   | 25,355 |   |   | 3.9 | % |   | 25,852 |   |   | 3.6 | % |
| Other                  consumer                                                                                                                                                                                                                                                                                                    |   |                              | 3,814   |                              |   | 0.6                               | %      |                              | 4,157   |                               |   | 0.6                                                               | %      |       | 4,221   |        |   | 0.6        | %      |        | 4,681   |       |   | 0.7         | %      |   | 4,535 |   |   | 0.7 | % |   | 5,864 |   |   | 0.8 | % |
| Land                  acquisition                                                                                                                                                                                                                                                                                                  |   |                              | 1,615   |                              |   | 0.3                               | %      |                              | 2,730   |                               |   | 0.4                                                               | %      |       | 3,201   |        |   | 0.5        | %      |        | 2,795   |       |   | 0.4         | %      |   | 4,712 |   |   | 0.7 | % |   | 5,017 |   |   | 0.7 | % |
| Gross                  loans receivable                                                                                                                                                                                                                                                                                            |   | $                                 | 628,132 |                              |   | 100.0                             | %      | $                                 | 660,846 |                               |   | 100.0                                                             | %      | $          | 660,883 |        |   | 100.0      | %      | $           | 653,455 |       |   | 100.0       | %      | $ | 658,272 |   |   | 100.0 | % | $ | 708,688 |   |   | 100.0 | % |
|                                                                                                                                                                                                                                                                                                                               |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **LOANS                  RECEIVABLE-NET**                                                                                                                                                                                                                                                                                          |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                  loans receivable                                                                                                                                                                                                                                                                                            |   | $                                 | 628,132 |                              |   | 103.2                             | %      | $                                 | 660,846 |                               |   | 105.0                                                             | %      | $          | 660,883 |        |   | 104.8      | %      | $           | 653,455 |       |   | 103.9       | %      | $ | 658,272 |   |   | 104.2 | % | $ | 708,688 |   |   | 105.1 | % |
| Deduct:                                                                                                                                                                                                                                                                                                                            |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Undisbursed                  portion of loans in process                                                                                                                                                                                                                                                                           |   |                              | (12,562 | )                                 |   | -2.1                              | %      |                              | (23,016 | )                                  |   | -3.7                                                              | %      |       | (22,150 | )           |   | -3.5       | %      |        | (16,856 | )          |   | -2.7        | %      |   | (19,498 | ) |   | -3.1 | % |   | (27,999 | ) |   | -4.2 | % |
| Deferred                  net loan fees                                                                                                                                                                                                                                                                                            |   |                              | (261    | )                                 |   | 0.0                               | %      |                              | (476    | )                                  |   | -0.1                                                              | %      |       | (555    | )           |   | -0.1       | %      |        | (544    | )          |   | -0.1        | %      |   | (508 | ) |   | -0.1 | % |   | (447 | ) |   | -0.1 | % |
| Allowance                  for loan losses                                                                                                                                                                                                                                                                                         |   |                              | (6,753  | )                                 |   | -1.1                              | %      |                              | (7,864  | )                                  |   | -1.2                                                              | %      |       | (7,506  | )           |   | -1.2       | %      |        | (7,172  | )          |   | -1.1        | %      |   | (6,451 | ) |   | -1.0 | % |   | (5,690 | ) |   | -0.8 | % |
| Net                  loans receivable                                                                                                                                                                                                                                                                                              |   | $                                 | 608,556 |                              |   | 100.0                             | %      | $                                 | 629,490 |                               |   | 100.0                                                             | %      | $          | 630,672 |        |   | 100.0      | %      | $           | 628,883 |       |   | 100.0       | %      | $ | 631,815 |   |   | 100.0 | % | $ | 674,552 |   |   | 100.0 | % |
|                                                                                                                                                                                                                                                                                                                               |   |                              |    |                              |   |                              |   |                              |    |                               |   |                                                              |   |       |    |        |   |       |   |        |    |       |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| The                following tables summarize the contractual maturities for HomeFederal                Bank's loan portfolio (including participations and mortgage-backed                certificates) for the fiscal periods indicated and the interest rate                sensitivity of loans due |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| after                one year:                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                    |   | **Balance** |   |   |   |   |   |   | **Maturities                in Fiscal** |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                    |   | **Outstanding** |   |   |   |   |   |   |   | **2009** |   | **2011** |   | **2016** |   | **2020** |   |
|                                                                                                                                                                                                                                                                                                    |   | **At                December 31,** |   |   |   |   |   |   |   | **                                      to** |   | **                                      to** |   | **                                      to** |   | **                                    and** |   |
|                                                                                                                                                                                                                                                                                                    |   | **2005** |   | **2006** |   | **2007** |   | **2008** |   | **2010** |   | **2015** |   | **2020** |   | **thereafter** |   |
|                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   | **(Dollars                in Thousands)** |   |   |   |
|                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real                estate                                                                                                                                                                                                                                                                              |   | $ | 341,299 |   | $ | 2,684 |   | $ | 2,380 |   | $ | 12,114 |   | $ | 26,570 |   | $ | 114,179 |   | $ | 40,523 |   | $ | 142,849 |   |
| Mortgage-backed                certificates, collateralized mortgage obligations                                                                                                                                                                                                                        |   |   |                51,199  |   |   | - |   |   | 418  |   |   | -  |   |   | 5,546  |   |   | 24,483  |   |   | 8,186  |   |   | 12,566  |   |
| Construction                loans                                                                                                                                                                                                                                                                       |   |   | 57,161 |   |   | 13,904 |   |   | 14,121 |   |   | 2,900 |   |   | 6,665 |   |   | 149 |   |   | 1,107 |   |   | 18,315 |   |
| Commercial                loans                                                                                                                                                                                                                                                                         |   |   | 105,827 |   |   | 55,859 |   |   | 7,146 |   |   | 6,630 |   |   | 20,428 |   |   | 8,636 |   |   | 5,216 |   |   | 1,912 |   |
| Other                loans                                                                                                                                                                                                                                                                              |   |   | 123,845 |   |   | 8,844 |   |   | 8,959 |   |   | 13,045 |   |   | 27,043 |   |   | 29,003 |   |   | 12,590 |   |   | 24,361 |   |
| Total                                                                                                                                                                                                                                                                                                   |   | $ | 679,331 |   | $ | 81,291 |   | $ | 33,024 |   | $ | 34,689 |   | $ | 86,252 |   | $ | 176,450 |   | $ | 67,622 |   | $ | 200,003 |   |

| **Interest                        Rate Sensitivity:**                                  |   |                                                   |    |                                      |   |
|----------------------------------------------------------------------------------------|--------|--------------------------------------------------------|---------|------------------------------------------------|--------|
|                                                                                   |   | **Due                        After December 31, 2006** |    |
|                                                                                   |   | **Fixed**                                              |    |  **Variable                        Rate** |   |
|                                                                                   |   | **Rate**                                               |    |  **And                        Balloon**   |   |
|                                                                                   |   | **(Dollars                        in Thousands)**      |    |
| Real                        estate                                                     |   | $                                                      | 38,079  |                                           | $      | 300,536 |   |
| Mortgage-backed                        certificates, collaterized mortgage obligations |   |                                                   | 51,086  |                                           |   | 113 |   |
| Construction                        loans                                              |   |                                                   | 1,741   |                                           |   | 41,516 |   |
| Commercial                        loans                                                |   |                                                   | 19,073  |                                           |   | 30,895 |   |
| Other                        Loans                                                     |   |                                                   | 80,232  |                                           |   | 34,769 |   |
|                               Total                      |   | $                                                      | 190,211 |                                           | $      | 407,829 |   |

**Residential      Mortgage Loans**

----

**Commercial      Mortgage Loans**

**Construction      Loans**

----

**Consumer      Loans**

**Commercial      Loans**

**Origination,      Purchase and Sale of Loans**

----

----

| The                  following table shows loan activity for HomeFederal Bank during                  the                  periods indicated: |   |                                         |    |                              |   |                               |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|-----------------------------------|--------|------------------------------------|--------|
|                                                                                                                                          |   |                                         |    |                              |   |                               |   |
|                                                                                                                                          |   |  **Dec                  31, 2005**           |    | **Dec                  31, 2004** |   | **Dec.                  31, 2003** |   |
|                                                                                                                                          |   |  **(Dollars                  in Thousands)** |
|                                                                                                                                          |   |                                         |    |                              |   |                               |   |
| Gross                  loans receivable at beginning of period                                                                                |   | $                                                 | 660,846 |                              | $      | 660,883                            |   | $ | 653,455 |   |
| Loans                  Originated:                                                                                                            |   |                                              |    |                              |   |                               |   |   |   |   |
| Mortgage                  loans and contracts:                                                                                                |   |                                              |    |                              |   |                               |   |   |   |   |
| Construction                  loans:                                                                                                          |   |                                              |    |                              |   |                               |   |   |   |   |
| Residential                                                                                                                                   |   |                                              | 29,598  |                              |   | 30,373                             |   |   | 28,253 |   |
| Commercial                                                                                                                                    |   |                                              | 39,416  |                              |   | 26,558                             |   |   | 33,643 |   |
| Permanent                  loans:                                                                                                             |   |                                              |    |                              |   |                               |   |   |   |   |
| Residential                                                                                                                                   |   |                                              | 50,028  |                              |   | 59,468                             |   |   | 60,225 |   |
| Commercial                                                                                                                                    |   |                                              | 29,194  |                              |   | 39,201                             |   |   | 18,721 |   |
| Refinancing                                                                                                                                   |   |                                              | 44,672  |                              |   | 92,140                             |   |   | 333,727 |   |
| Other                                                                                                                                         |   |                                              | 2,062   |                              |   | 1,092                              |   |   | 1,227 |   |
| Total                                                                                                                                         |   |                                              | 194,970 |                              |   | 248,832                            |   |   | 475,796 |   |
|                                                                                                                                          |   |                                              |    |                              |   |                               |   |   |   |   |
| Commercial                                                                                                                                    |   |                                              | 81,800  |                              |   | 81,819                             |   |   | 65,823 |   |
| Consumer                                                                                                                                      |   |                                              | 27,543  |                              |   | 25,416                             |   |   | 24,200 |   |
| Total                  loans originated                                                                                                       |   |                                              | 304,313 |                              |   | 356,067                            |   |   | 565,819 |   |
|                                                                                                                                          |   |                                              |    |                              |   |                               |   |   |   |   |
| Loans                  purchased:                                                                                                             |   |                                              |    |                              |   |                               |   |   |   |   |
| Residential                                                                                                                                   |   |                                              | -       |                              |   | -                                  |   |   | - |   |
| Other                                                                                                                                         |   |                                              | 1,720   |                              |   | 9,116                              |   |   | 10,605 |   |
| Total                  loans originated and purchased                                                                                         |   |                                              | 306,033 |                              |   | 365,183                            |   |   | 576,424 |   |
|                                                                                                                                          |   |                                              |    |                              |   |                               |   |   |   |   |
| Real                  estate loans sold                                                                                                       |   |                                              | 97,079  |                              |   | 143,661                            |   |   | 381,900 |   |
| Loan                  repayments and other deductions                                                                                         |   |                                              | 241,668 |                              |   | 221,559                            |   |   | 187,096 |   |
| Total                  loans sold, loan repayments and other deductions                                                                       |   |                                              | 338,747 |                              |   | 365,220                            |   |   | 568,996 |   |
|                                                                                                                                          |   |                                              |    |                              |   |                               |   |   |   |   |
| Net                  loan activity                                                                                                            |   |                                              | (32,714 | )                                 |   | (37                                | )      |   | 7,428 |   |
| Gross                  loans receivable at end of period                                                                                      |   |                                              | 628,132 |                              |   | 660,846                            |   |   | 660,883 |   |
| Adjustments                                                                                                                                   |   |                                              | (19,576 | )                                 |   | (31,356                            | )      |   | (30,211 | ) |
|                                                                                                                                          |   |                                              |    |                              |   |                               |   |   |   |   |
| Net                  loans receivable at end of period                                                                                        |   | $                                                 | 608,556 |                              | $      | 629,490                            |   | $ | 630,672 |   |
|                                                                                                                                          |   |                                              |    |                              |   |                               |   |   |   |   |

**Origination      and Other Fees**

*Accounting for Non Refundable*
*Fees and Costs      Associated with Originating or Acquiring Loans and *

----

*Initial      Direct Costs of Leases*

**Non-performing      Assets**

----

|                                                           |   |  **Dec                  31, 2005** |   |  **Dec                  31, 2004** |   |  **Dec                  31, 2003**                                          |   |  **Dec                  31, 2002** |   |  **June                  30, 2002** |   |  **June                  30, 2001** |   |
|----------------------------------------------------------------|--------|-----------------------------------------|--------|-----------------------------------------|--------|----------------------------------------------------------------------------------|--------|-----------------------------------------|--------|------------------------------------------|--------|------------------------------------------|--------|
| Non-performing                  Assets:                        |   |                               |   |                               |   | **(Dollars                in                Thousands)**     |   |                               |   |                                |   |
| Loans:                                                         |   |                                    |   |                                    |   |                                                                             |   |                                    |   |                                     |   |                                     |   |   |   |   |   |   |   |
| Non-accrual                                                    |   | $                                       | 3,070  |                                    | $      | 9,535                                                                            |   | $                                       | 2,499  |                                     | $      | 3,264                                    |   | $ | 2,281 |   | $ | 6,351 |   |
| Past                  due 90 days or more and still accruing   |   |                                    | 456    |                                    |   | 168                                                                              |   |                                    | 1,130  |                                     |   | 1,166                                    |   |   | 1,110 |   |   | - |   |
| Restructured                  loans                            |   |                                    | 809    |                                    |   | 3,141                                                                            |   |                                    | 258    |                                     |   | 316                                      |   |   | 374 |   |   | 879 |   |
| Total                  non-performing loans                    |   |                                    | 4,335  |                                    |   | 12,844                                                                           |   |                                    | 3,887  |                                     |   | 4,746                                    |   |   | 3,765 |   |   | 7,230 |   |
| Real                  estate owned, net (1)                    |   |                                    | 266    |                                    |   | 2,009                                                                            |   |                                    | 1,729  |                                     |   | 1,416                                    |   |   | 2,168 |   |   | 1,238 |   |
| Other                  repossessed assets, net                 |   |                                    | 5      |                                    |   | 10                                                                               |   |                                    | 10     |                                     |   | 56                                       |   |   | 71 |   |   | 60 |   |
| Total                  non-performing assets (2)               |   | $                                       | 4,606  |                                    | $      | 14,863                                                                           |   | $                                       | 5,626  |                                     | $      | 6,218                                    |   | $ | 6,004 |   | $ | 8,528 |   |
|                                                           |   |                                    |   |                                    |   |                                                                             |   |                                    |   |                                     |   |                                     |   |   |   |   |   |   |   |
| Total                  non-performing assets to total assets   |   |                                    | 0.54   | %                                       |   | 1.71                                                                             | %      |                                    | 0.66   | %                                        |   | 0.70                                     | %      |   | 0.70 | % |   | 0.99 | % |
|                                                           |   |                                    |   |                                    |   |                                                                             |   |                                    |   |                                     |   |                                     |   |   |   |   |   |   |   |
| Loans                  with allowance for uncollected interest |   | $                                       | 3,070  |                                    | $      | 9,535                                                                            |   | $                                       | 2,521  |                                     | $      | 3,343                                    |   | $ | 2,295 |   | $ | 6,440 |   |
|                                                           |   |                                    |   |                                    |   |                                                                             |   |                                    |   |                                     |   |                                     |   |   |   |   |   |   |   |

| (1)   | Refers                to real estate acquired by HomeFederal Bank through foreclosure,                voluntary                deed, or insubstance foreclosure, net of reserve. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | At                December 31, 2005, 45.8% of HomeFederal Bank's non-performing assets                consisted of residential mortgage loans, 6.7% consisted of home                equities/second mortgages, 4.6% consisted of commercial real estate                loans,                16.4% consisted of commercial loans, 3.0% consisted of consumer-related                loans, 17.6% consisted of restructured loans, 3.6% consisted of                residential real estate owned, 2.2% consisted of commercial real                estate                owned and 0.1% consisted of other repossessed                assets. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Investments**

----

**Source      Of Funds**

**General**

**Deposits**

| The                following table sets forth, by nominal interest rate categories,                the                composition of deposits of HomeFederal Bank at the dates                indicated:     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                             |   | **Dec                  31, 2005** |   |  **Dec                  31, 2004** |   |  **Dec                  31, 2003** |   |
|                                                                                                                                                                                                                             |   |   |   |  **(Dollars                  in Thousands)** |   |    |   |
|                                                                                                                                                                                                                             |   |   |   |    |   |    |   |
| Non-interest                  bearing and below 2.00%                                                                                                                                                                            |   | $ | 234,362 |   | $ | 402,130 |   | $ | 375,815 |   |
| 2.00%                  - 2.99%                                                                                                                                                                                                   |   |   | 128,498 |   |   | 123,942 |   |   | 47,912 |   |
| 3.00%                  - 3.99%                                                                                                                                                                                                   |   |   | 168,931 |   |   | 19,039 |   |   | 59,853 |   |
| 4.00%                  - 4.99%                                                                                                                                                                                                   |   |   | 90,050 |   |   | 51,421 |   |   | 54,985 |   |
| 5.00%                  - 5.99%                                                                                                                                                                                                   |   |   | 33,787 |   |   | 38,013 |   |   | 42,163 |   |
| Over                  6.00%                                                                                                                                                                                                      |   |   | 1,711 |   |   | 5,636 |   |   | 7,938 |   |
| Total                                                                                                                                                                                                                            |   | $ | 657,339 |   | $ | 640,181 |   | $ | 588,666 |   |
|                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |

----

| The                following table sets                forth the change in dollar amount of deposits in the various accounts                offered by HomeFederal Bank for the |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| periods                indicated.                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                            |   |   |   |   |   |   |   | **DEPOSIT                ACTIVITY** |   | ** ** |   | ** ** |   | ** ** |   |
| ** **                                                                                                                                                                      |   | ** ** |   | ** ** |   | ** ** |   | **(Dollars                in                Thousands)** |   | ** ** |   | ** ** |   | ** ** |   |
| ** **                                                                                                                                                                      |   | ** ** |   | ** ** |   | ** ** |   | ** ** |   | ** ** |   | ** ** |   | ** ** |   | ** ** |   | ** ** |   |
| ** **                                                                                                                                                                      |   | **Balance** |   | ** ** |   | ** ** |   | **Balance** |   | ** ** |   | ** ** |   | **Balance** |   | ** ** |   | ** ** |   |
| ** **                                                                                                                                                                      |   | **at** |   | ** ** |   | ** ** |   | **at** |   | ** ** |   | ** ** |   | **at** |   | ** ** |   | ** ** |   |
| ** **                                                                                                                                                                      |   | **Dec                31, ** |   | **%                of ** |   | **Increase** |   | **Dec                31, ** |   | **%                of ** |   | **Increase** |   | **Dec                31, ** |   | **%                of ** |   | **Increase** |   |
| ** **                                                                                                                                                                      |   | **2005** |   | **Deposits** |   | **(Decrease)** |   | **2004** |   | **Deposits** |   | **(Decrease)** |   | **2003** |   | **Deposits** |   | **(Decrease)** |   |
| Withdrawable:                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                bearing                                                                                                                                             |   | $ | 66,294 |   |   | 10.1 | % | $ | 6,144 |   | $ | 60,150 |   |   | 9.4 | % | $ | 4,615 |   | $ | 55,535 |   |   | 9.4 | % | $ | 3,815 |   |
| Statement                savings                                                                                                                                                |   |   | 46,014 |   |   | 7.0 | % |   | (3,821 | ) |   | 49,835 |   |   | 7.8 | % |   | (434 | ) |   | 50,269 |   |   | 8.5 | % |   | 2,460 |   |
| Money                market savings                                                                                                                                             |   |   | 147,218 |   |   | 22.4 | % |   | 14,855 |   |   | 132,363 |   |   | 20.7 | % |   | 19,566 |   |   | 112,797 |   |   | 19.2 | % |   | (8,147 | ) |
| Checking                                                                                                                                                                        |   |   | 98,123 |   |   | 14.9 | % |   | 9,876 |   |   | 88,247 |   |   | 13.7 | % |   | 20,714 |   |   | 67,533 |   |   | 11.5 | % |   | (6,157 | ) |
|     Total                Withdrawable                                                                                                                       |   |   | 357,649 |   |   | 54.4 | % |   | 27,054 |   |   | 330,595 |   |   | 51.6 | % |   | 44,461 |   |   | 286,134 |   |   | 48.6 | % |   | (8,029 | ) |
| Certificates:                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less                than one year                                                                                                                                               |   |   | 67,841 |   |   | 10.3 | % |   | 12,654 |   |   | 55,187 |   |   | 8.6 | % |   | 3,671 |   |   | 51,516 |   |   | 8.8 | % |   | 6,477 |   |
| 12                to 23 months                                                                                                                                                  |   |   | 37,196 |   |   | 5.7 | % |   | (9,361 | ) |   | 46,557 |   |   | 7.3 | % |   | 8,287 |   |   | 38,270 |   |   | 6.5 | % |   | (10,650 | ) |
| 24                to 35 months                                                                                                                                                  |   |   | 92,980 |   |   | 14.2 | % |   | 307 |   |   | 92,673 |   |   | 14.4 | % |   | (3,992 | ) |   | 96,665 |   |   | 16.4 | % |   | (11,404 | ) |
| 36                to 59 months                                                                                                                                                  |   |   | 14,053 |   |   | 2.1 | % |   | (9,570 | ) |   | 23,623 |   |   | 3.7 | % |   | (6,998 | ) |   | 30,621 |   |   | 5.2 | % |   | (13,144 | ) |
| 60                to 120 months                                                                                                                                                 |   |   | 87,620 |   |   | 13.3 | % |   | (3,926 | ) |   | 91,546 |   |   | 14.4 | % |   | 6,086 |   |   | 85,460 |   |   | 14.5 | % |   | 16,058 |   |
|     Total                certificate                accounts                                                                                           |   |   | 299,690 |   |   | 45.6 | % |   | (9,896 | ) |   | 309,586 |   |   | 48.4 | % |   | 7,054 |   |   | 302,532 |   |   | 51.4 | % |   | (12,663 | ) |
|                          Total deposits                                                                                            |   | $ | 657,339 |   |   | 100.0 | % | $ | 17,158 |   | $ | 640,181 |   |   | 100.0 | % | $ | 51,515 |   | $ | 588,666 |   |   | 100.0 | % | $ | (20,692 | ) |

----

| The                  following table represents, by various interest rate categories,                  the                  amounts of deposits maturing during each of the three years following                  December 31, 2005, and the percentage of such maturities to total                  deposits.  Matured                      |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| certificates                  which have not                  been renewed as of December 31, 2005 have been allocated based                  upon                  certain rollover assumptions.                                                                                                                                                  |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |    |   |   |   |   |   | **DEPOSIT                  MATURITIES** |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |    |   |   |   |   |   | **(Dollars                  in Thousands)** |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |  **1.99%** |   | **2.00%** |   | **3.00%** |   | **4.00%** |   | **5.00%** |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |  **or** |   | **to** |   | **to** |   | **to** |   | **to** |   | **Over** |   |   |   | **Percent                  of** |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |  **less** |   | **2.99%** |   | **3.99%** |   | **4.99%** |   | **5.99%** |   | **6.00%** |   | **Total** |   | **Total** |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Certificate                  accounts maturing in**                                                                                                                                                                                                                                                                                                        |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **the                  year ending:**                                                                                                                                                                                                                                                                                                                        |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **December                  31, 2006**                                                                                                                                                                                                                                                                                                                       |   | $ | 6,568 |   | $ | 56,159 |   | $ | 61,347 |   | $ | 42,410 |   | $ | 7,434 |   | $ | 480 |   | $ | 174,398 |   |   | 58.2 | % |
| **December                  31, 2007**                                                                                                                                                                                                                                                                                                                       |   |   | - |   |   | 12,271 |   |   | 24,013 |   |   | 22,711 |   |   | 22,119 |   |   | 629 |   |   | 81,743 |   |   | 27.3 | % |
| **December                  31, 2008**                                                                                                                                                                                                                                                                                                                       |   |   | - |   |   | 491 |   |   | 7,535 |   |   | 4,161 |   |   | 2,061 |   |   | 435 |   |   | 14,683 |   |   | 4.9 | % |
| **Thereafter**                                                                                                                                                                                                                                                                                                                                               |   |   | - |   |   | - |   |   | 7,501 |   |   | 19,025 |   |   | 2,173 |   |   | 167 |   |   | 28,866 |   |   | 9.6 | % |
| **Total**                                                                                                                                                                                                                                                                                                                                                    |   | $ | 6,568 |   | $ | 68,921 |   | $ | 100,396 |   | $ | 88,307 |   | $ | 33,787 |   | $ | 1,711 |   | $ | 299,690 |   |   | 100.0 | % |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Included                  in the deposit totals in the above table are savings certificates                  of                  deposit with balances exceeding $100,000. The majority of these                  deposits                  are from regular customers of HomeFederal Bank, excluding $22.6                  million,                  which |
| were                  from brokered deposits.  The following table provides a maturity                  breakdown at December 31, 2005, of certificates of deposits with                  balances                  greater than $100,000, by various interest rate                  categories.                                                        |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |    **ACCOUNTS                  GREATER THAN $100,000**  |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |  **(Dollars                  in Thousands)**  |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   | **1.99%** |   |   | **2.00%** |   |   | **3.00%** |   |   | **4.00%** |   |   | **5.00%** |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   | **or**  |   |   | **to** |   |   | **to** |   |   | **to** |   |   | **to** |   |   | **Over** |   |   |   |   |   | **Percent                  of** |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   | **less**  |   |   | **2.99%** |   |   | **3.99%** |   |   | **4.99%** |   |   | **5.99%** |   |   | **6.00%** |   |   | **Total** |   |   | **Total** |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Certificate                  accounts maturing in**                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **the                  year ending:**                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **December                  31, 2006**                                                                                                                                                                                                                                                                                                                       |   | $ | 653 |   | $ | 6,436 |   | $ | 20,718 |   | $ | 15,991 |   | $ | 1,742 |   | $ | 100 |   | $ | 45,640 |   |   | 49.8 | % |
| **December                  31, 2007**                                                                                                                                                                                                                                                                                                                       |   |   | - |   |   | 1,563 |   |   | 4,558 |   |   | 9,233 |   |   | 12,122 |   |   | 117 |   |   | 27,593 |   |   | 30.1 | % |
| **December                  31, 2008**                                                                                                                                                                                                                                                                                                                       |   |   | - |   |   | - |   |   | 1,771 |   |   | 3,509 |   |   | 817 |   |   | 383 |   |   | 6,480 |   |   | 7.1 | % |
| **Thereafter**                                                                                                                                                                                                                                                                                                                                               |   |   | - |   |   | - |   |   | 1,362 |   |   | 8,723 |   |   | 1,707 |   |   | 167 |   |   | 11,959 |   |   | 13.0 | % |
| **Total**                                                                                                                                                                                                                                                                                                                                                    |   | $ | 653 |   | $ | 7,999 |   | $ | 28,409 |   | $ | 37,456 |   | $ | 16,388 |   | $ | 767 |   | $ | 91,672 |   |   | 100.0 | % |
|                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

**Borrowings**

|                                                                                    |   |                               |   |   |   |                            |   |   |   |                            |   |
|-----------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|--------|---------------------------------|--------|--------|--------|---------------------------------|--------|
|                                                                                    |   | **Year**                           |   |   |   | **Year**                        |   |   |   | **Year**                        |   |
|                                                                                    |   | **Ended**                          |   |   |   | **Ended**                       |   |   |   | **Ended**                       |   |
| (Dollars                in Thousands)                                                   |   | **Dec                31,****2005** |   |   |   | **Dec                31, 2004** |   |   |   | **Dec                31, 2003** |   |
| Official                check overnight remittance                                      | $      | 172                                |   |   | $      | 6,364                           |   |   | $      | 6,419                           |   |
| FHLB                advances                                                            | $      | 57,053                             |   |   | $      | 48,150                          |   |   | $      | 37,200                          |   |
| FHLB                overnight remittance                                                | $      | -                                  |   |   | $      | -                               |   |   | $      | 2,043                           |   |
| Average                amount of total short-term                borrowings outstanding | $      | 50,695                             |   |   | $      | 36,520                          |   |   | $      | 31,491                          |   |

----

| (Dollars                in Thousands) |   | **Dec                31, 2005** |   | **Dec                31, 2004** |   | **Dec                31, 2003** |
|---------------------------------------|--------|---------------------------------|--------|---------------------------------|--------|---------------------------------|
| FHLB                advances:         |   |                            |   |                            |   |                            |
| Amount                                | $      | 32,403                          | $      | 48,150                          | $      | 37,200                          |
| Weighted                average rate  |   | 5.5%                            |   | 5.0%                            |   | 5.4%                            |

**Service      Corporation and Other Subsidiaries**

|                                                        |   |                                                                               | **Date**                        |   |           |   | **Loans                    from Home** |
|-------------------------------------------------------------|--------|------------------------------------------------------------------------------------|---------------------------------|--------|----------------|--------|----------------------------------------|
|                                                        |   |                                                                               | **HSC**                         |   |           |   | **Savings                    Corp.**   |
|                                                        |   |                                                                               | **Entered**                     |   |           |   | **Outstanding**                        |
|                                                        |   |                                                                               | **into                    the** |   | **Equity**     |   | **December                    31,**    |
| **Name**                                                    |   | **Type                    of Project**                                             | **Project**                     |   | **Investment** |   | **2005**                               |
| Heritage                    Woods II                        |   | Rental                    apartment project of low income housing (22 units)       | 11/15/89                        | $      | 27,000         | $      | -                                      |
| McCullough’s                    Run                   |   | Real                    estate development in                    Columbus, Indiana | 7/1/94                          | $      | 1,074,000      | $      | 1,407,000                              |
| Bloomington                    Technology Park, LLC         |   | Industrial                    park in Bloomington, Indiana                         | 11/10/97                        | $      | 43,000         | $      | -                                      |
| Courtyard                    Homes at Sycamore Springs, LLC |   | Single                    family homes in Indianapolis,                    Indiana | 6/14/99                         | $      | 550,000        | $      | 145,000                                |

----

**Employees**

**Competition**

----

**REGULATION**

**Home      Federal Bancorp**

*The      Bank Holding Company Act*

*Investments,      Control, and Activities*

----

*Dividends*

*Source      of Strength*

**HomeFederal      Bank**

*General      Regulatory      Supervision*

*Lending      Limits*

*Deposit      Insurance*
** **

----

*Transactions      with Affiliates and      Insiders*

*Dividends*

*Branching      and Acquisitions*

*Capital      Regulations*

----

|                                                                                                |   |                         |   |   |                              |                                 |   |   |                           |                                |   |                                         |             |   |   | **To Be Categorized As**                          |
|-----------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|-----------------------------------|--------------------------------------|--------|--------|--------------------------------|-------------------------------------|--------|----------------------------------------------|------------------|--------|--------|---------------------------------------------------|
|                                                                                                |   |                         |   |   |                              |                                 |   |   |                           |                                |   |                                         |             |   |   | **“Well                Capitalized”** |
|                                                                                                |   |                         |   |   |                              |                                 |   |   | **For                Capital** |                                |   |                                         | **Under Prompt** |
|                                                                                                |   | **Actual**                   |   |   |                              | **Adequacy                Purposes** |   |   |                           | **Corrective Action****Provisions** |
|                                                                                                     |   | **Amount**                   |   |   | **Ratio**                         |                                 |   |   | **Amount**                     |                                |   | **Ratio**                                    |             |   |   | **Amount**                                        |   |   | **Ratio** |
| As of December 31, 2005                                                                             |   |                         |   |   |                              |                                 |   |   |                           |                                |   |                                         |             |   |   |                                              |   |   |   |
| Total risk-based                capital                   (to risk-weighted assets)  |   |                         |   |   |                              |                                 |   |   |                           |                                |   |                                         |             |   |   |                                              |   |   |   |
|  HomeFederal                Bank                                                               | $      |   89,532                |   |   |  13.58%                      |                                 |   | $      |                  52,759   |                                |   |                     8.0% |             |   | $      |                   65,949                |   |   |                   10.0% |
| Home Federal                Bancorp                Consolidated                                     | $      |                  79,734 |   |   |  12.08%                      |                                 |   | $      |                  52,822   |                                |   |                     8.0% |             |   | $      |                   66,028                |   |   |                   10.0% |
| Tier 1 risk-based                capital                   (to risk-weighted assets) |   |                         |   |   |                              |                                 |   |   |                           |                                |   |                                         |             |   |   |                                              |   |   |   |
| HomeFederal                Bank                                                                     | $      |                  82,779 |   |   |  12.55%                      |                                 |   | $      |                  26,379   |                                |   |       4.0%     |             |   | $      |                   39,569                |   |   |                     6.0% |
| Home Federal                Bancorp                Consolidated                                     | $      |                  72,981 |   |   |  11.05%                      |                                 |   | $      |                  26,411   |                                |   |                     4.0% |             |   | $      |                   39,617                |   |   |                     6.0% |
| Tier                1 leverage capital                   (to average assets)         |   |                         |   |   |                              |                                 |   |   |                           |                                |   |                                         |             |   |   |                                              |   |   |   |
| HomeFederal                Bank                                                                     | $      |                  82,779 |   |   |                   9.82% |                                 |   | $      |                  33,724   |                                |   |                     4.0% |             |   | $      |                   42,155                |   |   |                     5.0% |
| Home Federal                Bancorp                Consolidated                                     | $      |                  72,981 |   |   |                   8.65% |                                 |   | $      |                  33,760   |                                |   |                     4.0% |             |   | $      |                   42,201                |   |   |     5.0% |

*Prompt      Corrective Regulatory      Action. *

*Other      Regulations*

----

| ◦                          Truth-In-Lending Act, governing disclosures of credit terms to consumer                borrowers;                                                                                                                               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                               |
| ◦                          Home Mortgage Disclosure Act of 1975, requiring financial institutions                to                provide information                                                                                                     |
|                            to enable the public and public officials to determine whether a                financial                institution is fulfilling                                                                                               |
|                            its obligation to help meet the housing needs of the community it                serves;                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                               |
| ◦                          Equal Credit Opportunity Act, prohibiting discrimination on the basis                of                race, creed or other                                                                                                     |
|                            prohibited factors in extending credit;                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                               |
| ◦                          Fair Credit Reporting Act of 1978, governing the use and provision                of                information to credit                                                                                                       |
|                            reporting agencies;                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                               |
| ◦                          Fair Debt Collection Act, governing the manner in which consumer                debts may                be collected by                                                                                                        |
|                            collection agencies; and                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                               |
| ◦                          Rules and regulations of the various federal agencies charged with                the                responsibility of                                                                                                          |
|                            implementing such federal laws.                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                               |
|                            The deposit operations of HomeFederal also are subject to                the:                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                               |
| ◦                          Right to Financial Privacy Act, which imposes a duty to maintain                confidentiality of consumer                                                                                                                     |
|                            financial records and prescribes procedures for complying with                administrative subpoenas of                                                                                                                        |
|                            financial records; and                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                               |
| ◦                          Electronic Funds Transfer Act, and Regulation E issued by the Federal                Reserve to implement                                                                                                                       |
|                            that Act, which governs automatic deposits to and withdrawals from                deposit                accounts and                                                                                                            |
|                            customers’ rights and liabilities arising from the use of automated teller                machines and other                           electronic banking services. |

*State      Bank Activities.*

*Enforcement      Powers*

*Recent      Legislative Developments*

----

| **·  ** | merging                the Bank Insurance Fund and the Savings Association Insurance Fund                into a                new Deposit Insurance Fund ("DIF") no later than July 1,                2006 |
|------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·  ** | keeping                the insurance coverage limit for individual accounts and municipal                accounts at $100,000 but providing an inflation adjustment process                which                permits an adjustment effective January 1, 2011 and every five years                thereafter based on the Personal Consumption Expenditures Index (with                2005                as the base year of comparison), unless the FDIC concludes such adjustment                would be inappropriate for reasons relating to risks to the                DIF. |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·  ** | increasing                insurance coverage limits for retirement accounts to $250,000, subject                to                the same inflation adjustment process described                above |
|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·  ** | prohibiting                undercapitalized members from accepting employee benefit plan                deposits |
|------------------------|------------------------------------------------------------------------------------------------------------------|

----

| **·  ** | providing                for the payment of credits based on a member's share of the assessment                base as of December 31, 1996 and equal to an aggregate of $4.7 billion                for                all members, which credits can offset FDIC assessments subject to                certain                limits |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·  ** | providing                for the declaration of dividends to members (based on a member's                share of                the assessment base on December 31, 1996, and premiums paid after                that                date) equal to 50% of the amount in the DIF in excess of a reserve                ratio                of 1.35% and 100% of such amount in excess of a reserve ratio of                1.5%,                subject to the FDIC's right to suspend or limit dividends based on                risks                to the DIF |
|------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·  ** | eliminating                the mandatory assessment (up to 23 basis points) if the DIF falls                below                1.25% of insured deposits and retaining assessments based on risk,                needs                of the DIF, and the effect on the members' capital and earnings.                The FDIC                will set a reserve ratio of between 1.15% and 1.5% and will have                five                years to restore the DIF if the ratio falls below                1.15%. |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Effect      of Governmental Monetary Policies*

**Federal      Home Loan Bank System **

**Limitations      on Rates Paid for Deposits **

----

**Federal      Reserve System**

**Federal      Securities Law**

**Community      Reinvestment Act Matters**

**Taxation**

**Federal      Taxation**

----

**State      Taxation**

**Item      1A. Risk Factors**

*Federal      and State Government Regulations.*

----

*Legislation.*

*Credit      Risk.*

*Exposure      to Local Economic Conditions.*

| ·   | Loan                delinquencies may increase; |
|--------------------|-------------------------------------------------|

| ·   | Problem                assets and foreclosures may                increase; |
|--------------------|-----------------------------------------------------------------------------|

| ·   | Demand                for the products and services of HomeFederal may decline;                and |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | Collateral                for loans made by HomeFederal, especially real estate, may decline                in                value, in turn reducing customers' borrowing power, and reducing                the value                of assets and collateral associated with existing loans of                HomeFederal. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Interest      Rate Risk.*

*Competition.*

**Item      1B. Unresolved Staff Comments**

----

**Item      2. **
**Properties.**

----

|                                                                                                                                                                                                                                                                                                                                               | **                                       Net                Book Value** |   |          |                                                                                                 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          | **of                Property,**                                                                      |   | **Approximate** |   |   |
| **Description                and**                                                                                                                                                                                                                                                                                                                 | **Owned                or**                                                                                                                                                                 |   |          | **Furniture                and**                                                                     |   | **Square** |   | **Lease** |
| **Address**                                                                                                                                                                                                                                                                                                                                        | **Leased**                                                                                                                                                                                  |   |          | **Fixtures**                                                                                         |   | **Footage** |   | **Expiration** |
| Principal                Office  501 Washington                Street                                                                                                                                                                                                                                                                         | Owned                                                                                                                                                                                       |   |  $       | 3,918,500                                                                                            |   | 21,600 |   | N/A |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Administrative Operations                Offices:  218 West Second                Street, Seymour                                                                                                                                                                                                                                             | Owned                                                                                                                                                                                       |   |  $       | 622,692                                                                                              |   | 20,000 |   | N/A |
|   211 North Chestnut,                Seymour                                                                                                                                                                                                                                                                                                  | Owned                                                                                                                                                                                       |   | $             | 461,312                                                                                              |   | 5,130 |   | N/A |
|   3801 Tupelo Drive,                Columbus                                                                                                                                                                                                                                                                                                  | Owned                                                                                                                                                                                       |   | $             | 3,065,895                                                                                            |   | 16,920 |   | N/A |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Branch                Offices:                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Columbus                Branches:                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
|   1020 Washington                Street                                                                                                                                                                                                                                                                                                       | Owned                                                                                                                                                                                       |   | $             | 394,030                                                                                              |   | 800 |   | N/A |
|   3805 25th                Street                                                                                                                                                                                                                                                                                                             | Owned                                                                                                                                                                                       |   | $             | 239,439                                                                                              |   | 5,800 |   | N/A |
|   2751 Brentwood                Drive                                                                                                                                                                                                                                                                                                         | Owned                                                                                                                                                                                       |   | $             | 386,673                                                                                              |   | 3,200 |   | N/A |
|   4330 West Jonathon                Moore Pike                                                                                                                                                                                                                                                                                                | Owned                                                                                                                                                                                       |   | $             | 515,797                                                                                              |   | 2,600 |   | N/A |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Hope Branch  8475 North State                Road                9, Suite 4                                                                                                                                                                                                                                                                   |  Leased                                                                                                                                                                                |   |   $ |                              96,825 |   |        1,500 |   |  03/2007 |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Austin Branch  67 West Main                Street                                                                                                                                                                                                                                                                                             | Owned                                                                                                                                                                                       |   |  $       | 46,068                                                                                               |   | 3,600 |   | N/A |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Brownstown                Branch  101 North Main                Street                                                                                                                                                                                                                                                                        | Leased                                                                                                                                                                                      |   |  $       | 3,796                                                                                                |   | 2,400 |   | Month                to Month |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| North Vernon Branches                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
|   111 North State                Street                                                                                                                                                                                                                                                                                                       | Owned                                                                                                                                                                                       |   | $             | 228,146                                                                                              |   | 1,900 |   | N/A |
|   1540 North                State Street                                                 | Leased                                                                                                                                                                                      |   | $             | 16,183                                                                                               |   | 1,600 |   | Month                to Month |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Osgood Branch  820 South Buckeye                Street                                                                                                                                                                                                                                                                                        | Owned                                                                                                                                                                                       |   |  $       | 88,960                                                                                               |   | 1,280 |   | N/A |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Salem Branch  1208 South                Jackson                                                                                                                                                                                                                                                                                               | Owned                                                                                                                                                                                       |   |  $       | 602,287                                                                                              |   | 1,860 |   | N/A |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Seymour Branches                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
|   222 W. Second                Street                                                                                                                                                                                                                                                                                                         | Owned                                                                                                                                                                                       |   | $             | 986,160                                                                                              |   | 9,200 |   | N/A |
|   1117 East Tipton                Street                                                                                                                                                                                                                                                                                                      | Owned                                                                                                                                                                                       |   | $             | 333,721                                                                                              |   | 6,800 |   | N/A |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Batesville                Branch  114 State Rd 46                East                                                                                                                                                                                                                                                                         | Owned                                                                                                                                                                                       |   |  $       | 511,550                                                                                              |   | 2,175 |   | N/A |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Madison Branch  201 Clifty                Drive                                                                                                                                                                                                                                                                                               | Owned                                                                                                                                                                                       |   |  $       | 387,954                                                                                              |   | 2,550 |   | N/A |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Greensburg                Branch  1801 Greensburg                Crossing                                                                                                                                                                                                                                                                     | Owned                                                                                                                                                                                       |   |  $       | 728,095                                                                                              |   | 1,907 |   | N/A |
|                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
| Indianapolis                Branches                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                        |   |          |                                                                                                 |   |   |   |   |
|   8740 South Emerson                Avenue                                                                                                                                                                                                                                                                                                    | Owned                                                                                                                                                                                       |   |  $       | 2,109,087                                                                                            |   | 5,000 |   | N/A |
|   1510 West Southport                Road                                                                                                                                                                                                                                                                                                     | Owned                                                                                                                                                                                       |   | $             | 2,038,296                                                                                            |   | 3,100 |   | N/A |

----

**Item      3.**
** Legal Proceedings.**

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

**Item      4.5. Executive Officers of Home Federal Bancorp.**

|                                                                                                                          Position with HFB |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                   S. Elaine                Pollert                                        Executive Vice President                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                   Mark T.                Gorski                          Executive                Vice President, Treasurer,                                                                                                                                     |
|                                                                                                       Chief Financial Officer and Secretary               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                   Charles R.                Farber                                     Executive Vice President                                                                                                                                                                           |

** **

**PART      II**

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

----

|                              |         | (a)                                                   |   |   | (b)                                         |   | (c)                                                                                                                               |   | (d)                                                                                                              |
|-----------------------------------|--------------|-------------------------------------------------------|--------|--------|---------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|
|  Period                      |    |  Total                number of shares purchased |   |   | Average                price paid per share |   | Total                number of shares purchased as part of publicly announced plans or                programs                (1) |   | Maximum                number of shares that may yet be purchased under the plans or programs                (1) |
| October                2005       |         | -                                                     |   | $      | 0.00                                        |   | -                                                                                                                                 |   | 134,000                                                                                                          |
| November                2005      |         | 15,000                                                |   | $      | 25.13                                       |   | 15,000                                                                                                                            |   | 119,000                                                                                                          |
| December                2005      |         | 46,000                                                |   | $      | 25.18                                       |   | 46,000                                                                                                                            |   | 73,000                                                                                                           |
| **Fourth                Quarter** |         | **61,000**                                            |   | **$**  | **25.18**                                   |   | **61,000**                                                                                                                        |   | **73,000**                                                                                                       |
|                              |         |                                                  |   |   |                                        |   |                                                                                                                              |   |                                                                                                             |

**Item      6.**
** Selected Financial Data.**

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

**Item      7A. Quantitative and Qualitative Disclosures About Market      Risk.**

----

**Item      8. **
**Financial Statements and Supplementary      Data.**

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

**Item      9A. Controls and Procedures.**

*    Evaluation      of      Disclosure Controls and Procedures*
** **
**.**

*    Annual      Report      on Internal Control Over Financial Reporting*

*    Attestation      Report of Registered Public Accounting Firm*

*  Changes      in Internal      Controls*
**.**

**Item      9B. Other Information**

**PART      III**

**Item      10. Directors and Executive Officers of the Registrant.**

----

**Item      11. Executive Compensation.**

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

**Equity      Compensation Plan Information**

| **Plan                category**                                          |   | **Number                of securities to****be                issued upon exercise****of                outstanding options,****warrants                and rights as of****December                31,****2005****(a)** |   | **Weighted-average****exercise                price of****outstanding****options,                warrants****and                rights****(b)** |   | **Number                of securities****remaining                available for future issuance under****equity                compensation****plans                as of****December                31,****2005****(excluding                securities****reflected                in****column                (a))****(c)** |
|---------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                      |   |                                                                                                                                                                                                                     |   |                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                           |
| Equity                compensation plans approved by security holders     |   | 617,717(1)                                                                                                                                                                                                               |   | $                21.86(1)                                                                                                                       |   | 271,631(1)                                                                                                                                                                                                                                                                                                                     |
| Equity                compensation plans not approved by security holders |   | ---                                                                                                                                                                                                                      |   | ---                                                                                                                                             |   | ---                                                                                                                                                                                                                                                                                                                            |
| Total                                                                     |   | 617,717                                                                                                                                                                                                                  |   | $21.86                                                                                                                                          |   | 271.631                                                                                                                                                                                                                                                                                                                        |

**Item      13. Certain Relationships and Related Transactions.**

----

**Item      14. Principal Accountant Fees and Services.**

**PART      IV**

**Item      15. Exhibits and Financial Statement Schedules.**

| Financial                  Statements                                                                                                                                                                                                                                                                                                                         | Page                  in 2005  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                                          | Shareholder                    |
|                                                                                                                                                                                                                                                                                                                                                          | Annual                  Report |
|                                                                                                                                                                                                                                                                                                                                                          |                           |
| Report                  of Deloitte & Touche LLP Independent Registered Public Accounting                  Firm                                                                                                                                                                                                                                           | 25                             |
|                                                                                                                                                                                                                                                                                                                                                          |                           |
| Consolidated                  Balance Sheets as of December 31, 2005 and December 31,                  2004                                                                                                                                                                                                                                                   | 26                             |
|                                                                                                                                                                                                                                                                                                                                                          |                           |
| Consolidated                  Statements of Income for the years ended  December                  31, 2005, December 31, 2004 and December 31, 2003.                                                                                                                                                                                                     | 27                             |
|                                                                                                                                                                                                                                                                                                                                                          |                           |
| Consolidated                  Statements of Shareholders’ Equity for the years ended December 31, 2005,                  December 31, 2004 and December 31, 2003.                                                                                                                                                                                       | 28                             |
|                                                                                                                                                                                                                                                                                                                                                          |                           |
| Consolidated                  Statements of Cash Flows for the years ended December 31, 2005,                  December                  31, 2004 and December 31, 2003.                                                                                                                                                                                      | 29                             |
|                                                                                                                                                                                                                                                                                                                                                          |                           |
| Notes                  to Consolidated Financial Statements                                                                                                                                                                                                                                                                                                   | 30                             |
|                                                                                                                                                                                                                                                                                                                                                          |                           |
| (b)  The                  exhibits filed herewith or incorporated by reference herein are                  set                  forth                  on the Exhibit Index on page 38.                                                                                                                                                             |                           |
|                                                                                                                                                                                                                                                                                                                                                          |                           |
|       (c)                  All schedules                  are omitted as the required information either is not applicable                  or is  included                  in the Consolidated Financial Statements or                             related notes. |                           |

----

**SIGNATURES**

**HOME      FEDERAL      BANCORP**

| Date:                  March                  15, 2006 | By:                  /s/                  John K. Keach, Jr.                                      |
|--------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|                                                   | John                  K. Keach, Jr.,  President and Chief Executive                  Officer |

| /s/                Mark T. Gorski                                                                                                      | /s/                John K. Keach, Jr.                                                                       |
|----------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|
| Mark                T. Gorski,Executive                Vice President, Treasurer, Chief Financial Officer and                Secretary | John                K.Keach, Jr.Chairman                of the Board, President and Chief Executive Officer |
| (Principal                Financial Officer)                                                                                           |                                                                                                        |
| (Principal                Executive Officer)                                                                                           |                                                                                                        |
|                                                                                                                                   |                                                                                                        |
| /s/                Melissa A. McGill                                                                                                   | /s/                John K. Keach, Jr.                                                                       |
| Melissa                A. McGill                                                                                                       | John                K. Keach, Jr., Director                                                                 |
| Senior                Vice President and Controller                                                                                    |                                                                                                        |
| (Principal                Accounting Officer)                                                                                          |                                                                                                        |
|                                                                                                                                   |                                                                                                        |
| /s/                Harvard W. Nolting, Jr.                                                                                             | /s/                John T. Beatty                                                                           |
| Harvard                W. Nolting, Jr., Director                                                                                       | John                T. Beatty, Director                                                                     |
|                                                                                                                                   |                                                                                                        |
| /s/                David W. Laitinen                                                                                                   | /s/                Harold Force                                                                             |
| David                W. Laitinen, Director                                                                                             | Harold                Force, Director                                                                       |
|                                                                                                                                   |                                                                                                        |
| /s/                John M. Miller                                                                                                      |                                                                                                        |
| John                M. Miller, Director                                                                                                |                                                                                                        |
|                                                                                                                                   |                                                                                                        |

----

| **EXHIBIT                  INDEX**                                                                                                                                                                                                                                               |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Reference                  to                                                                                                                                                                                                                                                    |
| Regulation                  S-K Sequential                                                                                                                                                                                                                                       |
| Exhibit                  Number Document                  Page Number                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                             |
| 3(a) Articles                  of Incorporation (incorporated by reference from                                                                                                                                                                                             |
| Exhibit                  B to Registrant's Registration Statement on Form S-4                                                                                                                                                                                                    |
| (Registration                  No. 33-55234)).                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                             |
| 3(b) Code                  of By-Laws (incorporated by reference from Exhibit C                                                                                                                                                                                        |
| to                  Registrant's Registration Statement on From S-4                                                                                                                                                                                                              |
| (Registration                  No. 33-55234)); amendment thereto dated                                                                                                                                                                                                           |
|                                             October 22, 2002 (incorporated by reference from Exhibit 3(b) of                                   |
| Registrant’s                  Transition Report on Form 10-K Transition Report for                  the                                                                                                                                                                    |
| six                  months ended December 31, 2002)                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                             |
| 4(a) Articles                  of Incorporation (incorporated by reference                                                                                                                                                                                                  |
| from                  Exhibit B to Registrant's Registration Statement on Form                  S-4                                                                                                                                                                              |
| (Registration                  No.33-55234)).                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                             |
|   4(b) Code                  of By-Laws (incorporated by reference from                                                                                                                                                                                           |
| Exhibit                  C to Registrant's Registration Statement on From S-4                                                                                                                                                                                                    |
| (Registration                  No. 33-55234); amendment thereto dated October 22,                                                                                                                                                                                                |
| 2002                  (incorporated by reference from Exhibit 3(b) of                  Registrant’s                                                                                                                                                                        |
| Transition                  Report on Form 10-K Transition Report for the six                  months                                                                                                                                                                            |
| Ended                  December 31, 2002).                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                             |
|   10(a) Stock                  Option Plan (incorporated by reference from Exhibit 10(a)                  to                                                                                                                                                      |
| Registrant's                  Registration Statement on Form S-4                                                                                                                                                                                                                 |
| (Registration                  No. 33-55234).                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                             |
|   10(b) 1993                  Stock Option Plan (incorporated by reference from Exhibit                  10(b)                                                                                                                                                    |
| to                  Registrant's Form 10-K for the year ended June 30, 1994);                  amendment                                                                                                                                                                         |
| thereto                  is incorporated by reference                  to                  Exhibit 10.1                  of the Registrant's                                                                                                                                     |
| Form 8-K                  dated March 28, 2005.                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                             |
| 10(d) Employment                  Agreement with John K. Keach, Jr. (incorporated by                                                                                                                                                                                        |
| reference                  from Exhibit 10(d) to Registrant's Registration                  Statement                                                                                                                                                                            |
|                                             on Form S-4 (Registration No. 33-55234)); first, second and third                                  |
| amendments                  thereto (incorporated by reference to Exhibit 10(d) of                                                                                                                                                                                               |
| Registrant’s                  Form 10-K for the year ended June 30, 1998); fourth                                                                                                                                                                                          |
| amendment                  thereto (incorporated by reference to Exhibit 10 (d) of                                                                                                                                                                                               |
| Registrant’s                  Form 10-K for the year ended June 30, 2001); fifth                                                                                                                                                                                           |
| amendment                  thereto (incorporated by reference from Exhibit l0(d)                                                                                                                                                                                                 |
| to                  Registrant’s Form 10-K for the fiscal year ended June 30, 2002).                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                             |
| 10(f) HomeFederal                  Savings Bank Excess Benefit Plan Agreement                                                                                                                                                                                               |
|                                            with                  John K. Keach, Jr. dated April 1, 2001 (incorporated by                  reference |
| to                  Exhibit 10 (f) of Registrant’s Form 10-K for the year                  ended                                                                                                                                                                           |
| June                  30, 2001).                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                             |
| 10(g) 1999                  Stock option plan incorporated by reference to Exhibit J to                  the                                                                                                                                                                |
| registrant’s                  proxy statement for its 1999 Annual shareholder’s                  meeting;                                                                                                                                                            |
| amendment                  thereto is incorporated by reference to Exhibit 10.1 of the                                                                                                                                                                                           |
| Registrant's                  Form 8-K dated March 28, 2005                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                             |
|   10(h) Home                  Federal Bancorp Long-Term Incentive Plan (incorporated                  by                                                                                                                                                          |
| reference                  to Exhibit 10.1 to Registrant’s Form 8-K dated May 24                  2005).                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                             |
| 10(i) Form                  of Home Federal Bancorp Long-Term Incentive Plan (incorporated                  by                                                                                                                                                              |
| reference                  to Exhibit 10.2 to Registrant’s Form 8-K dated May 24,                  2005).                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                             |
|   10(j) Supplemental                  Executive Retirement Agreement with Mark T. Gorski                  effective                                                                                                                                               |
| July                  1,2005 (incorporated by reference to Exhibit 10.4 to Registrant’s                                                                                                                                                                                    |
| Form                  8-K dated November 22, 2005); first amendment thereto dated                                                                                                                                                                                                |
| November                  3, 2005                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                             |
|                           10(k) HomeFederal                  Bank Supplemental Executive Retirement Agreement with                                                                                                                  |
| Elaine                  Pollert effective July 1, 2005 (incorporated by reference to Exhibit                  10.5                                                                                                                                                               |
| to                  Registrant's                  Form 8-K dated November 22, 2005).                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                             |
|    10(n) Supplemental                  Executive Retirement Plan with John K. Keach, Jr.                                                                                                                                                                     |
|        dated                  April 1, 2001(incorporated by reference from Exhibit 10(n)                  to                                                                                                                                  |
|                                           Registrant’s Form 10-K for the year ended June 30,                  2002).                               |
|                                                                                                                                                                                                                                                                             |
| 10(o) Supplemental                  Executive Retirement Plan with Lawrence E. Welker                                                                                                                                                                                       |
|                                            dated                  April 1, 2001 (incorporated by reference from Exhibit 10(o)                  to   |
|                                            Registrant’s Form 10-K for the year ended June 30,                  2002).                         |
|                                                                                                                                                                                                                                                                             |
| 10(p) Supplemental                  Executive Retirement Plan with Elaine Pollert dated                                                                                                                                                                                     |
| April                  1, 2001(incorporated by reference from Exhibit 10(p) to                                                                                                                                                                                                   |
| Registrant’s                  Form 10-K for the year ended June 30, 2002).                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                             |
| 10(v) Deferred                  Compensation Agreement with John K. Keach, Sr                                                                                                                                                                                               |
| (incorporated                  by reference from Exhibit 10(v) to HomeFederal                                                                                                                                                                                                    |
| Bank                  Form 10-K for the fiscal year ended June 30, 1992) and                  First                                                                                                                                                                              |
| Amendment                  to Deferred Compensation Agreement (incorporated by                                                                                                                                                                                                   |
| Reference                  from Exhibit 10(v) to Registrant's Form 10-K for the                  year                                                                                                                                                                            |
| ended                  June 30, 1994) and Second Amendment to Deferred                                                                                                                                                                                                           |
| Compensation                  Agreement (incorporated by reference from Exhibit 10(v)                                                                                                                                                                                            |
| to                  Registrant's Form 10-K for the year ended June 30,                  1998).                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                             |
| 10(w) Employment                  Agreement with S. Elaine Pollert (incorporated by                  reference                                                                                                                                                              |
| from                  Exhibit l0(w) to HomeFederal Bank Form 10-K for the fiscal                  year                                                                                                                                                                           |
| ended                  June 30, 1998); and First Amendment to Employment                  Agreement                                                                                                                                                                              |
| (incorporated                  by reference from Exhibit 10(w) to Registrant's Form                  10-K                                                                                                                                                                        |
| for                  the year ended June 30, 1998); second amendment thereto                                                                                                                                                                                                     |
| (incorporated                  by reference from Exhibit 10(w) to Registrant’s Form                  10-K                                                                                                                                                                  |
| for                  the year ended June 30, 2002); third amendment to                  Employment                                                                                                                                                                               |
| Agreement                  (incorporated by reference from Exhibit l0(w) to                  Registrant’s                                                                                                                                                                  |
| Form                  10-K for the fiscal year ended June 30, 2002).                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                             |
| 10(x) Supplemental                  Executive Retirement Plan with Gerald L. Armstrong                  dated                                                                                                                                                               |
| April                  1, 2001(incorporated by reference from Exhibit 10(x) to                  Registrant’s                                                                                                                                                               |
| Form                  10-K for the year ended June 30, 2002).                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                             |
| 10(ac) HomeFederal                  Bank Deferred Compensation Agreement with John Beatty                                                                                                                                                                                   |
| (incorporated                  by reference to Exhibit 10.2 of Registrant’s Form 8-K                                                                                                                                                                                       |
| dated                  November 22, 2005).                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                             |
|                         10(ad) Director                  Deferred Compensation Agreement with Lewis Essex                                                                                                                                     |
| (incorporated                  by reference from Exhibit 10(ad) to HomeFederal                                                                                                                                                                                                   |
| Bank                  Form 10-K for the fiscal year ended June 30, 1992);                                                                                                                                                                                                        |
| first                  and second amendments thereto (incorporated by                  reference                                                                                                                                                                                 |
| from                  Exhibit 10(ad) to Registrant's Form 10-K for the year                  ended                                                                                                                                                                               |
| June                  30, 1998).                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                             |
| 10(ae) HomeFederal                  Bank Director Deferred Compensation Agreement with                                                                                                                                                                                      |
| Harold                  Force (incorporated by reference to Exhibit 10.1 of                  Registrant’s                                                                                                                                                                  |
| Form                  8-K dated November 22, 2005).                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                             |
| 10(af) HomeFederal                  Bank Director Deferred Compensation Agreement with                                                                                                                                                                                      |
| David                  W. Laitinen (incorporated by reference to Exhibit 10.3                  of                                                                                                                                                                                |
| Registrant’s                  8-K dated November 22, 2005).                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                             |
| 10(ag) Director                  Deferred Compensation Agreement with William Nolting                                                                                                                                                                                       |
| (incorporated                  by reference from Exhibit 10(ag) to HomeFederal                                                                                                                                                                                                   |
| Bank                  Form 10-K for the fiscal year ended June 30, 1992); );                                                                                                                                                                                                     |
| first                  and second amendments thereto (incorporated by reference                  from                                                                                                                                                                            |
| Exhibit                  10(ag) to Registrant's Form 10-K for the year ended                                                                                                                                                                                                     |
| June                  30, 1998).                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                             |
|                         10(ar) Form                  of Non-Qualified Stock Option Agreement (incorporated by                  reference                                                                                                      |
| to                  Exhibit 10.2 to Registrant’s form 8-K dated March 28,                  2005).                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                             |
| 10(as) 1995                  Stock Option Plan (incorporated by reference from Exhibit                  A                                                                                                                                                                   |
| to                  Registrant's Proxy Statement for its 1995 annual shareholder                  meeting);                                                                                                                                                                      |
| amendment                  thereto is (incorporated by reference to Exhibit 10.1 of                  Registrant’s                                                                                                                                                          |
| Form                  8-K dated March 28, 2005).                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                             |
|     10(at) 2001                  Stock Option Plan (incorporated by reference from Exhibit                  B                                                                                                                                           |
| to                  the Registrant's Proxy Statement for its 2001 annual shareholder                  meeting);                                                                                                                                                                  |
| amendment                  thereto is incorporated by reference to Exhibit 10.1 of                  Registrant’s                                                                                                                                                           |
| Form                  8-K dated March 28, 2005.                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                             |
|     10(au) Employment                  Agreement with Charles R. Farber (incorporated by                  reference                                                                                                                                     |
| from                  Exhibit l0(au) to Registrant’s Form 10-K for the                                                                                                                                                                                                     |
| fiscal                  year ended June 30, 2002).                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                             |
|     10(av) Executive                  Supplemental Retirement Income Agreement with Charles R. Farber                                                                                                                                                   |
|                          dated                  November 1, 2002 (incorporates by reference to Exhibit 10(av) to                                                                                                                              |
| Registrant’s                  Transition Report on Form 10-K for the six months ended                                                                                                                                                                                      |
| December                  31, 2003).                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                             |
|     10(aw) Form                  of Incentive Stock Option Agreement                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                             |
|                      10(ax) Form                  of Bonus Plan (incorporated                  by reference to Exhibit 10(ax) of                                                                                                                             |
| Registrant’s                  Form 10-K for the fiscal year ended December 31, 2004).                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                             |
|      10(ay) Employment                  Agreement with Mark T. Gorski (incorporated by reference to                                                                                                                                                |
| Exhibit                  10ay to the Registrant's Form 10-Q for the fiscal quarter                  ended                                                                                                                                                                        |
| June                  30,                  2005).                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                             |
| 13 Home                  Federal Bancorp Annual Report December 31, 2005.                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                             |
| 14 Code                  of Ethics (incorporated                  by reference to Exhibit 14 of Registrant’s                                                                                                                                                     |
| Form10-K                  for the fiscal year ended December 31, 2003).                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                             |
| 21 Subsidiaries                  of the Registrant (incorporated by reference to Exhibit 21                                                                                                                                                                                 |
| of                  the Registrant’s Transition Report on Form 10-K for the six                  months                                                                                                                                                                    |
| ended                  December 31, 2002).                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                             |
| 23.1 Independent                  Registered Public Accounting Firm Consent.                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                             |
| 31.1 Certification                  of John K. Keach, Jr. required by 12 C.F.R. §                  240.13a-14(a)                                                                                                                                                       |
|                                                                                                                                                                                                                                                                             |
| 31.2 Certification                  of Mark T. Gorski required by 12 C.F.R. § 240.13a-14(a)                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                             |
| 32 Certification                  pursuant to 18 U.S.C. § 1350, as adopted pursuant to                                                                                                                                                                                 |
| Section                  906 of the Sarbanes-Oxley Act of                  2002.                                                                                                                                                                                                 |