##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 (Mark One)x
    
    Report under Section 13 or 15(d) of the Securities Exchange Act of 1934
 June 30, 2010
 OR
 o
    
    Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934
 000-51117
 HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
  Federal
    
    86-1127166(State or Other Jurisdiction of 
Incorporation or Organization)
    
    (I.R.S. Employer
Identification Number)
 624 Market Street, Shreveport, Louisiana
    
    71101(Address of Principal Executive Offices)
    
    (Zip Code)
 Registrants Telephone Number, including area code:
    
    (318) 222-1145Securities registered under Section 12(b) of the Act:
    
    NoneSecurities registered under Section 12(g) of the Act:
 Common Stock (par value $.01 per share)
 
  o x
 o x
 x o
 o o
 x
  Large accelerated filer
    
    o
    
    
    
    Accelerated filer
    
    oNon-accelerated filer
    
    o
    
    (Do not check if a smaller reporting company)
    
    Smaller reporting company
    
    x
 o x
   DOCUMENTS INCORPORATED BY REFERENCE
  (1)
    
    Portions of the Annual Report to Shareholders are incorporated into Part II, Items 5 through 8 and Part IV, Item 15 of this Form 10-K.(2)
    
    Portions of the Definitive Proxy Statement for the 2010 Annual Meeting of Shareholders are incorporated into Part III, Items 10 through 14.




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##### 



Home Federal Bancorp Inc. of Louisiana
Form 10-K
For the Year Ended June 30, 2010
 PART I.Item 1.
    
    Business.
    
    
    1Item 1A.
    
    Risk Factors.
    
    
    29Item 1B.
    
    Unresolved Staff Comments.
    
    
    29Item 2.
    
    Properties.
    
    
    29Item 3.
    
    Legal Proceedings.
    
    
    29Item 4.
    
    Submission of Matters to a Vote of Security Holders.
    
    
    29PART II.Item 5.
    
    Market for Registrants Common Equity, Related Stockholder Matters and
Issuer Purchases of Equity Securities.
    
    
    30Item 6.
    
    Selected Financial Data.
    
    
    31Item 7.
    
    Managements Discussion and Analysis of Financial Condition and
Results of Operations.
    
    
    33Item 7A.
    
    Quantitative and Qualitative Disclosure About Market Risk.
    
    
    42Item 8.
    
    Financial Statements and Supplementary Data.
    
    
    43Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.
    
    
    76Item 9A(T).
    
    Controls and Procedures.
    
    
    76Item 9B.
    
    Other Information.
    
    
    77PART III.Item 10.
    
    Directors, Executive Officers and Corporate Governance.
    
    
    77Item 11.
    
    Executive Compensation.
    
    
    78Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters.
    
    
    78Item 13.
    
    Certain Relationships and Related Transactions and Director Independence
    
    
    78Item 14.
    
    Principal Accountant Fees and Services.
    
    
    78PART IV.Item 15.
    
    Exhibits and Financial Statement Schedules.
    
    
    79EX-23.0EX-31.1EX-31.2EX-32.0
   
 i




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##### Table of Contents



PART I
 
 Item 1. Business
  Market
    Area
          General.
   1




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##### Table of Contents



Competition.
   2




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##### Table of Contents



Lending
    Activities
  General.
    loans-to-one loans-to-one
   3




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##### Table of Contents



Loan Portfolio Composition.
  June 30,2010


2009Percent of





Percent ofAmount


Total Loans


Amount


Total Loans(Dollars in thousands)Real estate loans:One- to four-family residential(1)

$
36,257



38.65
%

$
22,106



46.50
%Commercial-real estate secured:Owner occupied


14,550



15.51



8,193



17.24Non-owner occupied


872



0.93







Total commercial-real estate secured


15,422



16.44



8,193



17.24Multi-family residential


9,079



9.68



4,884



10.27Commercial business


9,454



10.08



3,904



8.21Land


8,442



9.00



2,348



4.94Construction


7,793



8.31



338



0.71Home equity loans and second mortgage loans


2,963



3.16



4,914



10.34Equity lines of credit


4,069



4.33



451



0.95Total real estate loans


93,479



99.65



47,138



99.16Non-real estate loans:Savings accounts


285



0.30



359



0.76Automobile


48



0.05



40



0.08Total non-real estate loans


333



0.35



399



0.84Total loans


93,812



100.00
%


47,537



100.00
%Less:Allowance for loan losses


(489
)






(466
)Deferred loan fees


(267
)






(123
)Net loans receivable(1)

$
93,056






$
46,948     (1)
    
    Does not include loans held for sale amounting to
    $13.4 million and $1.3 million at June 30, 2010
    and June 30, 2009, respectively.  Origination of Loans.
   4




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##### Table of Contents



Year Ended June 30,2010


2009(In thousands)Loan originations:One- to four-family residential

$
113,753


$
32,160Commercial  real estate secured (owner occupied and
    non-owner occupied)


8,645



8,217Multi-family residential


7,780



Commercial business


12,877



2,770Land


7,561



3,502Construction


11,569



339Home equity loans and lines of credit and other consumer


6,488



3,702Total loan originations


168,673



50,690Loans purchased






Total loan originations and loans purchased


168,673



50,690Loans sold


(71,554
)


(16,157
)Loan principal repayments


(50,844
)


(15,609
)Total loans sold and principal repayments


(122,398
)


(31,766
)Increase (decrease) due to other items, net(1)


(167
)


(239
)Net increase in loan portfolio

$
46,108


$
18,685     (1)
    
    Other items consist of deferred loan fees, the allowance for
    loan losses and loans held for sale at year end.  loans-to-one
 5




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##### Table of Contents



Contractual Terms to Final Maturities.
  HomeEquity Loansand LinesOne- to


Commercial


Multi-











of CreditFour-Family


Real Estate


Family


Commercial








and OtherResidential


Secured


Residential


Business


Land


Construction


Consumer


Total(In thousands)Amounts due after June 30, 2010 in:One year or less

$
1,275


$
1,071


$
115


$
2,882


$
3,398


$
4,355


$
2,862


$
15,958After one year through two years


1,419



520



3,909



846



4,735



2,751



245



14,425After two years through three years


2,414



434







1,354











83



4,285After three years through five years


13,198



11,770



633



4,080



309



687



4,042



34,719After five years through ten years


1,258



1,230







292











133



2,913After ten years through fifteen years


1,529







788



















2,317After fifteen years


15,164



397



3,634



















19,195Total

$
36,257


$
15,422


$
9,079


$
9,454


$
8,442


$
7,793


$
7,365


$
93,812     Floating orFixed-Rate


Adjustable-Rate


Total(In thousands)One-to four-family residential

$
27,351


$
8,906


$
36,257Commercial  real estate secured


15,422







15,422Multi-family residential


9,079







9,079Commercial business


9,454







9,454Land


8,442







8,442Construction


7,793







7,793Home equity loans and lines of credit and other consumer


7,365







7,365Total

$
84,906


$
8,906


$
93,812  6




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##### Table of Contents



One- to Four-Family Residential Real Estate
    Loans.
  loan-to-value loan-to-value loan-to-value due-on-sale
      Commercial and Multi-Family Residential Loans 
    General.
  Commercial Real Estate Loans.
  Multi-Family Residential Loans.
  Commercial Business Loans.
 7




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##### Table of Contents



Land Loans. loan-to-value
  Construction Loans.
  Home Equity and Second Mortgage Loans. loan-to-value three-to-five
  Equity Lines of Credit.
  Non-real Estate Loans  General.
     8




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##### Table of Contents



Loan Origination and Other Fees.
  Asset
    Quality
  General.
      deed-in-lieu
 9




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##### Table of Contents



Delinquent Loans.
  June 30, 2010


June 30, 200930-89


90 or More Days


30-89


90 or More DaysDays Overdue


Overdue


Days Overdue


OverdueNumber


Principal


Number


Principal


Number


Principal


Number


Principalof Loans


Balance


of Loans


Balance


of Loans


Balance


of Loans


Balance(Dollars in thousands)One- to four-family residential


4


$
265



1


$
15



1


$
75



2


$
349Commercial  real estate secured






























Multi-family residential






























Commercial business






























Land






























Construction










1



345















Home equity loans and lines of credit and other consumer






























Total delinquent loans


4


$
265



2


$
360



1


$
75



2


$
349Delinquent loans to total net loans






0.28
%






0.39
%






0.16
%






0.74
%Delinquent loans to total loans






0.28
%






0.38
%






0.16
%






0.73
%   Non-Performing Assets.
  June 30,2010


2009(Dollars in thousands)Non-accruing loans:One- to four-family residential

$
15


$
349Commercial  real estate secured






Multi-family residential






Commercial business






Land






Construction


345



Home equity loans and lines of credit and other consumer






Total non-accruing loans


360



349Accruing loans 90 days or more past due






Total non-performing loans(1)


360



349Real estate owned, net






Total non-performing assets

$
360


$
349Total non-performing loans as a percent of loans, net


0.39
%


0.74
%Total non-performing assets as a percent of total assets


0.19
%


0.23
%     (1)
    
    Non-performing loans consist of non-accruing loans plus accruing
    loans 90 days or more past due.  Classified Assets.
 10




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##### Table of Contents



Allowance for Loan Losses.
     11




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##### Table of Contents



At or for the Year EndedJune 30,2010


2009(Dollars in thousands)Total loans outstanding at end of period

$
93,812


$
47,537Average loans outstanding


77,879



32,630Allowance for loan losses, beginning of period

$
466


$
235Provision for loan losses


36



240Charge-offs


(13
)


(9
)Allowance for loan losses, end of period

$
489


$
466Allowance for loan losses as a percent of non-performing loans


135.83
%


133.52
%Allowance for loan losses as a percent of loans outstanding


0.52
%


0.98
%     June 30,2010


2009Loan





LoanCategory





CategoryAmount of


as a % of


Amount of


as a % ofAllowance


Total Loans


Allowance


Total Loans(Dollars in thousands)One- to four-family residential

$
30



38.65
%

$
29



46.50
%Commercial real estate


95



16.44



91



17.23Multi-family residential


70



9.68



67



10.27Commercial business


140



10.08



133



8.21Land


75



9.00



71



4.94Construction


74



8.31



71



0.71Home equity loans and lines of credit and other consumer


5



7.85



4



12.13Total

$
489



100.00
%

$
466



100.00
%   Investment
    Securities
   12




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##### Table of Contents



June 30,2010


2009Amortized


Fair


Amortized


FairCost


Value


Cost


Value(In thousands)Securities
    Held-to-Maturity:FHLB stock

$
1,840


$
1,840


$
1,806


$
1,806Mortgage-backed securities


298



323



378



389Total Securities
    Held-to-Maturity


2,138



2,163



2,184



2,195Securities
    Available-for-Sale:Corporate securities


1,538



1,559



2,415



1,727Mortgage-backed securities


58,974



62,129



89,567



90,920Total Securities
    Available-for-Sale


60,512



63,688



91,982



92,647Total Investment Securities

$
62,650


$
65,851


$
94,166


$
94,842     Amounts at June 30, 2010 which Mature inOver OneWeighted


Year


Weighted


Over Five


Weighted





WeightedOne Year


Average


Through


Average


Through


Average


Over


Averageor Less


Yield


Five Years


Yield


Ten Years


Yield


Ten Years


Yield(Dollars in thousands)Bonds and other debt securities:Mortgage-backed securities

$
8



6.08
%

$
5



6.41
%

$
866



3.52
%

$
61,573



4.95
%Equity securities(1):ARM Fund


























1,559



3.54FHLB stock


























1,840



.37Total investment securities and FHLB stock

$
8



6.08
%

$
5



6.41
%

$
866



3.52
%

$
64,972



4.78
%     (1)
    
    None of the listed equity securities has a stated maturity.     13




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##### Table of Contents



i.e.
        June 30,2010


2009(In thousands)Fixed rate:GNMA

$
205


$
251FHLMC


2,812



14,087FNMA


58,004



75,301Total fixed rate


61,021



89,639Adjustable rate:GNMA


128



155FNMA


881



1,013FHLMC


422



502Total adjustable-rate


1,431



1,670Total mortgage-backed securities

$
62,452


$
91,309  14




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##### Table of Contents



Amounts at June 30, 2010 which Mature inWeighted


Over One


Weighted





WeightedOne Year


Average


through


Average


Over


Averageor Less


Yield


Five Years


Yield


Five Years


Yield(In thousands)Fixed rate:GNMA

$
8



6.08
%

$





%

$
197



7.99
%FHLMC


















2,812



5.00FNMA


















58,004



4.99Total fixed-rate


8



6.08











61,013



5.00
%Adjustable rate:GNMA


















128



3.14
%FNMA










5



6.41



876



3.26FHLMC


















422



3.27Total adjustable-rate










5



6.41



1,426



3.25Total

$
8



6.08
%

$
5



6.41
%

$
62,439



4.93
%     At or For theYear Ended June 30,2010


2009(Dollars in thousands)Mortgage-backed securities at beginning of period

$
89,945


$
98,407Purchases






24,253Repayments


(14,555
)


(13,957
)Sales


(16,420
)


(19,048
)Amortizations of premiums and discounts, net


302



290Mortgage-backed securities at end of period


59,272



89,945Weighted average yield at end of period


4.95
%


5.09
%   Sources
    of Funds
  General.
  Deposits.
 15




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##### Table of Contents



June 30,2010


2009Percent of





Percent ofAmount


Total Deposits


Amount


Total Deposits(Dollars in thousands)Certificate accounts:0.00% - 0.99%

$
12



0.01
%

$
134



0.14
%1.00% - 1.99%


30,309



25.75



11,970



13.902.00% - 2.99%


16,734



14.22



13,030



15.133.00% - 3.99%


17,497



14.86



21,405



24.854.00% - 4.99%


7,865



6.68



12,990



15.085.00% - 5.99%


1,473



1.25



3,272



3.80Total certificate accounts


73,890



62.77



62,801



72.90Transaction accounts:Savings


5,266



4.47



6,056



7.03NOW


18,130



15.40



8,537



9.91Money market


20,436



17.36



8,752



10.16Total transaction accounts


43,832



37.23



23,345



27.10Total deposits

$
117,722



100.00
%

$
86,146



100.00
%     Year Ended June 30,2010


2009Average








AverageAverage


Interest


Rate


Average


Interest


RateBalance


Expense


Paid


Balance


Expense


Paid(Dollars in thousands)Savings

$
5,588


$
23



0.41
%

$
5,653


$
26



0.46
%NOW


11,523



22



0.19



7,896



21



0.27Money market


14,377



183



1.27



4,268



38



0.89Certificates of deposit


67,981



2,010



2.96



61,780



2,378



3.85Total deposits

$
99,469


$
2,238



2.25
%

$
79,597


$
2,463



3.09
% 16




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##### Table of Contents



Year Ended June 30,2010


2009(In thousands)Total deposits at beginning of period

$
86,146


$
78,359Net deposits (withdrawals)


30,059



6,212Interest credited


1,517



1,575Total increase in deposits

$
31,576


$
7,787     Balance at June 30, 2010Maturing in the 12 Months Ending June 30,Certificates of Deposit

2011


2012


2013


Thereafter


Total(In thousands)0.00% - 0.99%

$
12


$



$



$



$
121.00% - 1.99%


29,338



971











30,3092.00% - 2.99%


3,173



11,359



1,732



471



16,7353.00% - 3.99%


1,851



1,059



3,728



10,858



17,4964.00% - 4.99%


3,474



2,932



1,401



58



7,8655.00% - 5.99%


521



751



201







1,473Total certificate accounts

$
38,369


$
17,072


$
7,062


$
11,387


$
73,890     WeightedQuarter Ending:

Amount


Average Rate(Dollars in thousands)September 30, 2010

$
3,928



2.61
%December 31, 2010


4,771



1.75March 31, 2011


1,965



2.36June 30, 2011


3,663



1.89After June 30, 2011


9,808



2.96Total certificates of deposit with balances in excess of $100,000

$
24,135



2.45
%   Borrowings.
   17




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##### Table of Contents



At or For the YearEnded June 30,2010

2009(Dollars in thousands)FHLB advances:Average balance outstanding

$
35,529


$
35,853Maximum amount outstanding at any month-end during the period


42,542



41,134Balance outstanding at end of period


31,507



35,997Average interest rate during the period


3.43
%


3.84
%Weighted average interest rate at end of period


3.47
%


3.81
%       Years Ended June 30,

Amount(In thousands)2011

$
9,6162012


11,4222013


5,9072014


1,9152015


236Thereafter


2,411Total

$
31,507   Subsidiaries
    Employees
   18




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##### Table of Contents



REGULATION
    General
        Recently
    Enacted Regulatory Reform
      
    The Office of Thrift Supervision will be merged into the Office
    of the Comptroller of the Currency and the authority of the
    other remaining bank regulatory agencies restructured. The
    federal thrift charter will be preserved under the jurisdiction
    of the Office of the Comptroller of the Currency.
    A new independent consumer financial protection bureau will be
    established within the Federal Reserve Board, empowered to
    exercise broad regulatory, supervisory and enforcement authority
    with respect to both new and existing consumer financial
    protection laws. Smaller financial institutions, like Home
    Federal Bank, will be subject to the supervision and enforcement
    of their primary federal banking regulator with respect to the
    federal consumer financial protection laws.
    Tier 1 capital treatment for hybrid capital
    items like trust preferred securities is eliminated subject to
    various grandfathering and transition rules.
    The current prohibition on payment of interest on demand
    deposits was repealed, effective July 21, 2011.
    State law is preempted only if it would have a discriminatory
    effect on a federal savings association or is preempted by any
    other federal law. The Office of the Comptroller of the Currency
    must make a 19




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##### Table of Contents



preemption determination on a
    case-by-case
    basis with respect to a particular state law or other state law
    with substantively equivalent terms.  
    Deposit insurance is permanently increased to $250,000 and
    unlimited deposit insurance for noninterest-bearing transaction
    accounts extended through January 1, 2013.
    Deposit insurance assessment base calculation will equal the
    depository institutions total assets minus the sum of its
    average tangible equity during the assessment period.
    The minimum reserve ratio of the Deposit Insurance Fund
    increased to 1.35 percent of estimated annual insured
    deposits or assessment base; however, the Federal Deposit
    Insurance Corporation is directed to offset the
    effect of the increased reserve ratio for insured
    depository institutions with total consolidated assets of less
    than $10 billion.    
    Authority over savings and loan holding companies will transfer
    to the Federal Reserve Board.
    Leverage capital requirements and risk based capital
    requirements applicable to depository institutions and bank
    holding companies will be extended to thrift holding companies.
    The Federal Deposit Insurance Act was amended to direct federal
    regulators to require depository institution holding companies
    to serve as a source of strength for their depository
    institution subsidiaries.
    The Securities and Exchange Commission is authorized to adopt
    rules requiring public companies to make their proxy materials
    available to shareholders for nomination of their own candidates
    for election to the board of directors.
    Public companies will be required to provide their shareholders
    with a non-binding vote: (i) at least once every three
    years on the compensation paid to executive officers, and
    (ii) at least once every six years on whether they should
    have a say on pay vote every one, two or three years.
    A separate, non-binding shareholder vote will be required
    regarding golden parachutes for named executive officers when a
    shareholder vote takes place on mergers, acquisitions,
    dispositions or other transactions that would trigger the
    parachute payments.
    Securities exchanges will be required to prohibit brokers from
    using their own discretion to vote shares not beneficially owned
    by them for certain significant matters, which
    include votes on the election of directors, executive
    compensation matters, and any other matter determined to be
    significant.
    Stock exchanges, which do not include the OTC
    Bulletin Board, will be prohibited from listing the
    securities of any issuer that does not have a policy providing
    for (i) disclosure of its policy on incentive compensation
    payable on the basis of financial information reportable under
    the securities laws, and (ii) the recovery from current or
    former executive officers, following an accounting restatement
    triggered by material noncompliance with securities law
    reporting requirements, of any incentive compensation paid
    erroneously during the three-year period preceding the date on
    which the restatement was required that exceeds the amount that
    would have been paid on the basis of the restated financial
    information.
    Disclosure in annual proxy materials will be required concerning
    the relationship between the executive compensation paid and the
    financial performance of the issuer.
    Item 402 of
    Regulation S-K
    will be amended to require companies to disclose the ratio of
    the Chief Executive Officers annual total compensation to
    the median annual total compensation of all other employees.
    Smaller reporting companies are exempt from complying with the
    internal control auditor attestation requirements of
    Section 404(b) of the Sarbanes-Oxley Act. 20




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##### Table of Contents



Regulation
    of Home Federal Bancorp and Home Federal Mutual Holding
    Company
    Holding Company Acquisitions.
    Restrictions Applicable to Home Bancorp and Home Federal
    Mutual Holding Company.
  
    investing in the stock of a savings institution;
    acquiring a mutual association through the merger of such
    association into a savings institution subsidiary of such
    holding company or an interim savings institution subsidiary of
    such holding company;
    merging with or acquiring another holding company, one of whose
    subsidiaries is a savings institution;
    investing in a corporation, the capital stock of which is
    available for purchase by a savings institution under federal
    law or under the law of any state where the subsidiary savings
    institution or association is located; and
    the permissible activities described below for non-grandfathered
    savings and loan holding companies.   21




---



##### Table of Contents



Federal Securities Laws.
  The Sarbanes-Oxley Act. Sarbanes-Oxley
  Regulation
    of Home Federal Bank
  General.
  Insurance of Accounts.
 22




---



##### Table of Contents



Regulatory Capital Requirements.
 23




---



##### Table of Contents



case-by-case
            Prompt Corrective Action.
  Total Risk-Based

Tier 1 Risk-Based

Tier 1 LeverageCapital Category

Capital

Capital

CapitalWell capitalized

10% or more

6% or more

5% or moreAdequately capitalized

8% or more

4% or more

4% or moreUndercapitalized

Less than 8%

Less than 4%

Less than 4%Significantly undercapitalized

Less than 6%

Less than 3%

Less than 3%      24




---



##### Table of Contents



Capital Distributions.
      Qualified Thrift Lender Test.
    
    Making any new investments or engaging in any new activity not
    allowed for both a national bank and a savings association;
    Establishing any new branch office unless allowable for a
    national bank; and
    Paying dividends unless allowable for a national bank. 25




---



##### Table of Contents



Community Reinvestment Act.
  Limitations on Transactions with
    Affiliates.
    Anti-Money Laundering.
 26




---



##### Table of Contents



Federal Home Loan Bank System. i.e.
      Federal Reserve System.
 27




---



##### Table of Contents



TAXATION
  Federal
    Taxation
  General.
  Method of Accounting.
  Bad Debt Reserves.
  Taxable Distributions and Recapture.
    Alternative Minimum Tax.
  Corporate Dividends-Received Deduction.
  State
    Taxation
           28




---



##### Table of Contents



Item 1A. Risk Factors
  
 Item 1B. Unresolved Staff Comments
  
 Item 2. Properties
    Net Book Value

Amount ofDescription/Address

Leased/Owned

of Property

Deposits(In thousands)Building624 Market Street
    Shreveport, LA


Owned


$
241


$
45,241Building/ATM6363 Youree Dr.
    Shreveport, LA


Owned
(1)


328



51,497Building/ATM9300 Mansfield Rd., Suite 101
    Shreveport, LA


Leased







20,984Agency Office6425 Youree Drive, Suite 100
    Shreveport, LA


Leased







Lot 2River Crest, Unit #1
    Bossier Parish, LA


Owned



436



Lot2555 Viking Drive
    Bossier City, LA


Owned



1,526



     (1)
    
    The building is owned but the land is subject to an operating
    lease which was renewed on November 30, 2008 for a five
    year period. 
 Item 3. Legal Proceedings
  
 Item 4. Submission of Matters to a Vote of Security Holders
  29




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##### Table of Contents



PART II
 
 Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
    over-the-counter mark-up,
  Stock Price per Share


Cash DividendsQuarter Ended:

High Bid


Low Bid


per ShareFiscal 2010:June 30, 2010

$
9.00


$
7.55


$
0.06March 31, 2010


8.55



8.55



0.06December 31, 2009


8.55



7.25



0.06June 30, 2009


7.75



6.25



0.06Fiscal 2009:June 30, 2009


7.50



5.60



0.06March 31, 2009


7.00



5.60



0.06December 31, 2008


7.15



5.00



0.05September 30, 2008


9.30



6.85



0.05     (b)
    
    Not applicable.
 30




---



##### Table of Contents



(c)
    
    The following table presents information regarding the Companys stock
repurchase program. The Company did not repurchase any shares of common stock during
the fourth quarter of fiscal 2010:
 Total Number of
    
    Maximum NumberTotal
    
    
    
    Shares Purchased
    
    of Shares That MayNumber of
    
    Average
    
    as Part of Publicly
    
    Yet Be PurchasedShares
    
    Price Paid
    
    Announced Plans
    
    Under the Plans orPeriod
    
    Purchased
    
    per Share
    
    or Programs
    
    ProgramsMonth #1 April 1, 2010  April 30, 2010
    
    
    
    $
    
    
    
    
    93,637Month #2 May 1, 2010  May 31, 2010
    
    
    
    
    
    
    
    
    93,637Month #3 June 1, 2010  June 30, 2010
    
    
    
    
    
    
    
    
    93,637Total
    
    
    
    $
    
    
    
    
    93,637
 Notes to this table:
 (a)
    
    On August 26, 2008, the Company issued a press release announcing that the Board of Directors
authorized a stock repurchase program (the program) on August 13, 2008.(b)
    
    The Company was authorized to repurchase 10% or 125,000 of the outstanding shares other than
shares held by Home Federal Mutual Holding Company.(c)
    
    The program does not have an expiration date.
 
 Item 6. Selected Financial Data
    At June 30,2010


2009


2008


2007


2006(Dollars in thousands, except per share amounts)Selected Financial and Other Data:Total assets

$
185,145


$
154,766


$
137,715


$
118,785


$
114,000Cash and cash equivalents


8,837



10,007



7,363



3,972



4,930Securities available for sale


63,688



92,647



96,324



83,752



83,694Securities held to maturity


2,138



2,184



1,688



1,408



1,425Loans
    held-for-sale


13,403



1,277



852Loans receivable, net


93,056



46,948



28,263



26,689



20,866Deposits


117,722



86,146



78,359



77,710



71,279Federal Home Loan Bank advances


31,507



35,997



26,876



12,368



13,417Total Stockholders equity


33,365



31,310



27,874



27,812



28,539   As of or for the Year Ended June 30,2010


2009


2008


2007


2006Selected Operating Data:Total interest income

$
9,169


$
7,596


$
7,004


$
6,590


$
5,664Total interest expense


3,458



3,838



3,968



3,448



2,433Net interest income


5,711



3,758



3,036



3,142



3,231Provision for loan losses


36



240







1



Net interest income after provision for loan losses


5,675



3,518



3,036



3,141



3,231Total non-interest income


864



363



198



240



145Total non-interest expense(1)


5,196



3,113



3,359



2,417



2,415Income (loss) before income tax expense (benefit)


1,343



768



(125
)


964



961Income tax expense (benefit)


673



253



(43
)


327



327Net income (loss)

$
670


$
515


$
(82
)

$
637


$
634Earnings (loss) per share of common stock:Basic

$
0.21


$
0.16


$
(0.03
)

$
0.19


$
0.19Diluted

$
0.21


$
0.16


$
(0.03
)

$
0.19


$
0.19   (Footnotes on following page)
 31




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##### Table of Contents



As of or for the Year Ended June 30,2010


2009


2008


2007


2006Selected Operating Ratios(2):Average yield on interest-earning assets


5.59
%


5.21
%


5.39
%


5.69
%


5.35
%Average rate on interest-bearing liabilities


2.56



3.32



4.00



3.84



2.98Average interest rate spread(3)


3.03



1.89



1.39



1.85



2.37Net interest margin(3)


3.48



2.58



2.33



2.71



3.05Average interest-earning assets to average interest-bearing
    liabilities


121.43



126.37



131.06



128.93



129.49Net interest income after provision for loan losses to
    non-interest expense


109.22



113.01



90.38



129.95



133.82Total non-interest expense to average assets


3.08



2.09



2.52



2.00



2.14Efficiency ratio(4)


79.46



80.21



103.87



71.49



71.53Return on average assets


0.40



0.35



(0.06
)


0.53



0.56Return on average equity


2.09



1.70



(0.25
)


2.13



2.10Average equity to average assets


18.98



20.35



24.83



24.82



26.81Dividend payout ratio


43.73



57.86







52.90



49.37Asset Quality Ratios(5):Non-performing loans as a percent of total loans receivable


0.38
%


0.72
%



%


0.46
%



%Non-performing assets as a percent of total assets


0.19



0.23



0.04



0.10



Allowance for loan losses as a percent of total loans receivable


0.52



0.98



0.82



0.92



1.11Net charge-offs to average loans receivable


0.02



0.03











Allowance for loan losses as a percent of non-performing loans


135.83



133.52







202.59



Bank Capital Ratios(5):Tangible capital ratio


16.47
%


18.93
%


20.21
%


22.79
%


23.48
%Core capital ratio


16.47



18.93



20.21



22.79



23.48Total capital ratio


33.67



54.77



73.08



80.63



87.78Other Data:Full service offices


4



4



3



3



3Employees (full-time)


39



22



17



17



17     (1)
    
    Includes merger and stock issuance related expense of $133,000
    and $883,000 for the years ended June 30, 2009 and 2008,
    respectively.(2)
    
    With the exception of end of period ratios, all ratios are based
    on average monthly balances during the indicated periods.(3)
    
    Average interest rate spread represents the difference between
    the average yield on interest-earning assets and the average
    rate paid on interest-bearing liabilities, and net interest
    margin represents net interest income as a percentage of average
    interest-earning assets.(4)
    
    The efficiency ratio represents the ratio of non-interest
    expense divided by the sum of net interest income and
    non-interest income.(5)
    
    Asset quality ratios and capital ratios are end of period
    ratios, except for net charge-offs to average loans receivable. 32




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##### Table of Contents



Item 7. Managements Discussion and Analysis of Financial Condition and Results of
Operations
 General
    available-for-sale
      Business
    Strategy
    
    Continue to Grow and Diversify Our Loan Portfolio by, among
    other things, emphasizing our origination of commercial real
    estate and business loans.  Home Federal
    Bancorps traditional lending 33




---



##### Table of Contents



activity historically had been concentrated on the origination
    of single-family residential loans and, to a lesser degree,
    consumer loans. Beginning in 2009, we hired three senior
    commercial loan officers to develop a loan portfolio more
    consistent with that of a community bank. At June 30, 2010,
    our commercial real estate loans amounted to $15.4 million,
    or 16.4% of the total loan portfolio, compared to
    $8.2 million, or 17.2% at June 30, 2009. Our
    commercial business loans at June 30, 2010 amounted to
    $9.5 million or 10.1% of the total loan portfolio compared
    to $3.9 million, or 8.2% at June 30, 2009. Commercial
    real estate, commercial business, construction and development
    and consumer loans all typically have higher yields and are more
    interest sensitive than long-term single-family residential
    mortgage loans. We plan to continue to grow and diversify our
    loan portfolio, and we intend to continue to grow our holdings
    of commercial real estate and business loans. In addition, the
    net proceeds to be received from the conversion and offering
    will increase our
    loan-to-one
    borrower limits, which will permit us to originate and retain
    larger balance, commercial real estate and business loans.  
    Diversify Our Products and Services.  We intend
    to continue to emphasize increasing the amount of our commercial
    business products to provide a full-service banking relationship
    to our commercial customers. We have also introduced mobile and
    Internet banking and remote deposit capture, to better serve our
    commercial clients. Additionally, we have developed new deposit
    products focused on expanding our deposit base to new types of
    customers.
    Managing Our Expenses.  In recent periods, we
    have incurred significant additional expenses related to
    personnel and infrastructure. While our total non-interest
    expense increased $2.1 million in fiscal 2010 compared to
    2009, we expect such increases will moderate in the future.
    Enhancing Core Earnings.  We expect to improve
    our interest rate spread by emphasizing commercial real estate
    and business loans which generally bear interest rates higher
    than residential real estate loans and selling most of our fixed
    rate residential mortgage loan originations. The weighted
    average yield on our loan portfolio for the year ended
    June 30, 2010 was 6.7% and average interest rate spread for
    the year ended June 30, 2010 was 3.0% as compared to 1.9%
    for the year ended June 30, 2009. Likewise, we have
    increased the amount of low cost deposits including
    non-interest-bearing checking accounts which resulted in a
    reduction in Home Federal Bancorps weighted average cost
    of its deposits, the primary component of its interest expense
    for fiscal 2010.
    Expanding Our Franchise in our Market Area and Contiguous
    Communities.  We intend to pursue opportunities to
    expand our market area by opening additional de novobanking offices and possibly, through acquisitions of other
    financial institutions and banking related businesses (although
    we have no current plans, understandings or agreements with
    respect to any specific acquisitions). We expect to focus on
    contiguous areas to our current locations in Caddo and Bossier
    Parishes. Our first branch office in North Bossier is expected
    to open in October 2010 and may develop a site in South Bossier
    in the future.
    Maintain Our Asset Quality.  At June 30,
    2010, our non-performing assets totaled $360,000 or 0.19% of
    total assets. We had no real estate owned or troubled debt
    restructurings at June 30, 2010. We intend to continue to
    stress maintaining high asset quality after the conversion and
    offering even as we continue to grow our institution and
    diversity our loan portfolio. Home Federal Bancorp does not, nor
    has it in the past, originated or purchased
    sub-prime
    mortgage loans.
    Cross-Selling Products and Services and Emphasizing Local
    Decision.  We have promoted cross-selling products
    and services in our branch offices and emphasized our local
    decision making and streamlined loan approval process. We
    presently have two full-time loan underwriters at Home Federal
    Bank.  Critical
    Accounting Policies
   34




---



##### Table of Contents



Allowance for Loan Losses.
    Income Taxes.
  Changes
    in Financial Condition
  held-for-sale available-for-sale
   35




---



##### Table of Contents



One-to-four one-to-four
    available-for-sale available-for-sale.
      available-for-sale
 36




---



##### Table of Contents



Average Balances, Net Interest Income, Yields Earned and
    Rates Paid.
  June 30,Yield/


2010


2009Rate








Average








Averageat June 30,


Average





Yield/


Average





Yield/2010


Balance


Interest


Rate


Balance


Interest


Rate(Dollars in thousands)Interest-earning assets:Investment securities


4.78
%

$
78,880


$
3,942



5.00
%

$
107,683


$
5,333



4.95
%Loans receivable


5.70



77,879



5,218



6.70



32,630



2,238



6.86Interest-earning deposits


0.07



7,163



9



0.13



5,578



25



0.45Total interest-earning assets


5.20
%


163,922



9,169



5.59
%


145,891



7,596



5.21
%Non-interest-earning assets






4,787











2,730Total assets





$
168,709










$
148,621Interest-bearing liabilities:Savings accounts


0.42
%


5,588



23



0.41
%


5,653



26



0.46
%NOW accounts


0.12



11,523



22



0.19



7,896



21



0.27Money market accounts


1.19



14,377



183



1.27



4,268



38



0.89Certificate accounts


2.66



67,981



2,010



2.96



61,780



2,378



3.85Total deposits


1.90



99,469



2,238



2.25



79,597



2,463



3.09FHLB advances


3.47



35,529



1,219



3.43



35,853



1,375



3.84Total interest-bearing liabilities


2.23
%


134,998



3,457



2.56
%


115,450



3,838



3.32
%Non-interest-bearing liabilities






1,696











2,927Total liabilities






136,694











118,377Total Stockholders Equity(1)






32,015











30,244Total liabilities and equity





$
168,709










$
148,621Net interest-earning assets





$
28,924










$
30,441Net interest income; average interest rate spread(2)









$
5,712



3.03
%





$
3,758



1.89
%Net interest margin(3)














3.48
%










2.58
%Average interest-earning assets to average interest-bearing
    liabilities














121.43
%










126.37
%     (1)
    
    Includes retained earnings and accumulated other comprehensive
    loss.(2)
    
    Interest rate spread represents the difference between the
    weighted-average yield on interest-earning assets and the
    weighted-average rate on interest-bearing liabilities.(3)
    
    Net interest margin is net interest income divided by net
    average interest-earning assets. 37




---



##### Table of Contents



Rate/Volume Analysis.
  2010 vs. 2009


2009 vs. 2008Increase (Decrease) Due to


Increase (Decrease) Due toTotal








TotalIncrease








IncreaseRate


Volume


(Decrease)


Rate


Volume


(Decrease)(In thousands)Interest income:Investment securities

$
39


$
(1,427
)

$
(1,388
)

$
(98
)

$
651


$
553Loans receivable, net


(126
)


3,103



2,977



(118
)


284



166Interest-earning deposits


(23
)


7



(16
)


(104
)


(23
)


(127
)Total interest-earning assets


(110
)


1,683



1,573



(320
)


912



592Interest expense:Savings accounts


(3
)


(1
)


(4
)


(1
)


5



4NOW accounts


(9
)


10



1



3



2



5Money market accounts


55



90



145



21



5



26Certificate accounts


(605
)


239



(366
)


(508
)


(99
)


(607
)Total deposits


(562
)


338



(224
)


(485
)


(87
)


(572
)FHLB advances


(145
)


(12
)


(157
)


(249
)


691



442Total interest-bearing liabilities


(707
)


326



(381
)


(734
)


604



(130
)Increase (Decrease) in net interest income

$
597


$
1,357


$
1,954


$
414


$
308


$
722   Comparison
    of Operating Results for the Years Ended June 30, 2010 and
    2009
  General.
  Net Interest Income.
   38




---



##### Table of Contents



Provision for Loan Losses.
          Non-Interest Income.
  Non-Interest Expense.
 39




---



##### Table of Contents



Provision for Income Tax Expense.
  Exposure
    to Changes in Interest Rates
  available-for-sale
  available-for-sale available-for-sale
  Quantitative Analysis.
  Net Portfolio Value.
  NPV as % of PortfolioChange in Interest Rates in

Net Portfolio Value


Value of AssetsBasis Points (Rate Shock)

Amount


$ Change


% Change


NPV Ratio


Change(Dollars in thousands)300

$
30,323


$
(7,943
)


(20.76
)%


16.84
%


(2.82
)%200


33,578



(4,688
)


(12.25
)


18.11



(1.55
)100


36,349



(1,917
)


(5.01
)


19.09



(0.57
)Static


38,266











19.66



(50)


38,636



370



0.97



19.69



0.03(100)


38,661



396



1.03



19.60



(0.05
)   Qualitative Analysis. available-for-sale.
 40




---



##### Table of Contents



Liquidity
    and Capital Resources
      available-for-sale
  available-for-sale
    Off-Balance
    Sheet Arrangements
    Impact of
    Inflation and Changing Prices
   41




---



##### Table of Contents



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




---



##### Table of Contents



Item 8. Financial Statements and Supplementary Data
 
      Report
    of Independent Registered Public Accounting Firm        10-K
  
     
 43




---



##### Table of Contents



HOME
    FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
  CONSOLIDATED BALANCE SHEETS
 JUNE 30,
    2010 AND 2009
  2010


2009(In thousands)ASSETSCash and Cash Equivalents (Includes Interest-Bearing Deposits
    with Other Banks of $4,698 and $8,508 for 2010 and 2009,
    Respectively)

$
8,837


$
10,007Securities
    Available-for-Sale


63,688



92,647Securities
    Held-to-Maturity


2,138



2,184Loans
    Held-for-Sale


13,403



1,277Loans Receivable, Net


93,056



46,948Accrued Interest Receivable


560



543Premises and Equipment, Net


3,049



982Other Assets


414



178Total Assets

$
185,145


$
154,766LIABILITIES AND STOCKHOLDERS EQUITYLiabilitiesDeposits

$
117,722


$
86,146Advances from Borrowers for Taxes and Insurance


205



137Advances from Federal Home Loan Bank of Dallas


31,507



35,997Other Accrued Expenses and Liabilities


1,425



1,082Deferred Tax Liability


921



94Total Liabilities


151,780



123,456Stockholders EquityPreferred Stock  No Par Value;
    2,000,000 Shares Authorized; None Issued and
    OutstandingCommon Stock  $.01 Par Value;
    8,000,000 Shares Authorized;
    3,558,958 Shares Issued;
    3,348,237 Shares Outstanding at June 30, 2010 and
    3,373,464 Shares Outstanding at June 30, 2009


14



14Additional Paid-In Capital


13,655



13,608Treasury Stock, at Cost  210,721 Shares at
    June 30, 2010; 185,494 Shares at June 30, 2009


(2,094
)


(1,887
)Unearned ESOP Stock


(826
)


(883
)Unearned RRP Trust Stock


(145
)


(269
)Retained Earnings


20,665



20,288Accumulated Other Comprehensive Income


2,096



439Total Stockholders Equity


33,365



31,310Total Liabilities and Stockholders Equity

$
185,145


$
154,766    44




---



##### Table of Contents



HOME
    FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
  CONSOLIDATED STATEMENTS OF
    OPERATIONS
 FOR THE YEARS ENDED JUNE 30, 2010 AND 2009
  2010


2009(In thousands, except per share data)Interest IncomeLoans, Including Fees

$
5,218


$
2,238Mortgage-Backed Securities


3,874



5,221Investment Securities


69



112Other Interest-Earning Assets


8



25Total Interest Income


9,169



7,596Interest ExpenseDeposits


2,238



2,463Federal Home Loan Bank Borrowings


1,220



1,375Total Interest Expense


3,458



3,838Net Interest Income


5,711



3,758Provision for Loan Losses


36



240Net Interest Income after Provision for Loan Losses


5,675



3,518Non-Interest IncomeGain on Sale of Loans


644



2Gain on Sale of Securities


796



325Other Income


55



36Impairment Charge on Securities


(627
)


Loss on Sale of Real Estate


(4
)


Total Non-Interest Income


864



363Non-Interest ExpenseCompensation and Benefits


3,383



1,783Occupancy and Equipment


406



230Franchise and Bank Shares Tax


150



150Merger and Stock Issuance Costs






133Other Expenses


1,257



817Total Non-Interest Expense


5,196



3,113Income Before Income Taxes


1,343



768Provision for Income Tax Expense


673



253Net Income

$
670


$
515Earnings Per ShareBasic

$
0.21


$
0.16Diluted

$
0.21


$
0.16    45




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##### Table of Contents



HOME
    FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
  CONSOLIDATED STATEMENTS OF COMPREHENSIVE
    INCOME
 FOR
    THE YEARS ENDED JUNE 30, 2010 AND 2009
  2010


2009(In thousands)Net Income

$
670


$
515Other Comprehensive Income, Net of TaxUnrealized Holding Gains Arising During the Period


1,968



3,480Reclassification Adjustment for Gains Included in Net Income


(311
)


(407
)Total Other Comprehensive Income


1,657



3,073Total Comprehensive Income

$
2,327


$
3,588    46




---



##### Table of Contents



HOME
    FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
  CONSOLIDATED STATEMENTS OF CHANGES IN
    STOCKHOLDERS EQUITY
 FOR
    THE YEARS ENDED JUNE 30, 2010 AND 2009
  AccumulatedAdditional


Unearned





Other


Unearned





TotalCommon


Paid-In


ESOP


Retained


Comprehensive


RRP Trust


Treasury


StockholdersStock


Capital


Stock


Earnings


Income (Loss)


Stock


Stock


Equity(In thousands)Balance  June 30, 2008

$
14


$
13,567


$
(940
)

$
20,071


$
(2,634
)

$
(395
)

$
(1,809
)

$
27,874ESOP Compensation Earned






(16
)


57



















41Distribution of RRP Trust Stock






















126







126Dividends Paid














(298
)














(298
)Stock Options Vested






57























57Acquisition of Treasury Stock


























(78
)


(78
)Net Income














515















515Other Comprehensive Income, Net of Applicable Deferred Income
    Taxes


















3,073











3,073Balance  June 30, 2009


14



13,608



(883
)


20,288



439



(269
)


(1,887
)


31,310ESOP Compensation Earned






(10
)


57



















47Distribution of RRP Trust Stock






















124







124Dividends Paid














(293
)














(293
)Stock Options Vested






57























57Acquisition of Treasury Stock


























(207
)


(207
)Net Income














670















670Other Comprehensive Income, Net of Applicable Deferred Income
    Taxes


















1,657











1,657Balance  June 30, 2010

$
14


$
13,655


$
(826
)

$
20,665


$
2,096


$
(145
)

$
(2,094
)

$
33,365    47




---



##### Table of Contents



HOME
    FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
  CONSOLIDATED STATEMENTS OF CASH FLOWS
 FOR
    THE YEARS ENDED JUNE 30, 2010 AND 2009
  2010


2009(In thousands)Cash Flows from Operating ActivitiesNet Income

$
670


$
515Adjustments to Reconcile Net Income to Net Cash (Used in)
    Provided by Operating ActivitiesGain on Sale of Loans


(644
)


(2
)Loss on Sale of Real Estate


4



Net Amortization and Accretion on Securities


(302
)


(290
)Amortization of Deferred Loan Fees


(275
)


(18
)Provision for Loan Losses


36



240Depreciation of Premises and Equipment


126



71Gain on Sale of Securities


(796
)


(325
)ESOP Compensation Expense


47



41Deferred Income Tax (Benefit)


(27
)


203Stock Option Expense


57



57Recognition and Retention Plan Expense


118



125Impairment Charge on Investments


627



Changes in Assets and Liabilities:Origination and Purchase of Loans
    Held-for-Sale


(83,679
)


(16,582
)Sale and Principal Repayments on Loans
    Held-for-Sale


72,198



16,159Accrued Interest Receivable


(17
)


8Other Operating Assets


(249
)


(125
)Other Operating Liabilities


348



229Net Cash (Used in) Provided by Operating Activities


(11,758
)


306Cash Flows from Investing ActivitiesLoan Originations and Principal Collections, Net


(46,275
)


(18,923
)Proceeds from Sale of Real Estate


174



Deferred Loan Fees Collected


419



25Acquisition of Premises and Equipment


(2,371
)


(172
)Activity in
    Available-for-Sale
    Securities:Proceeds from Sales of Securities


17,466



19,373Principal Payments on Mortgage-Backed Securities


14,474



13,842Purchases






(24,269
)Activity in
    Held-to-Maturity
    Securities:Principal Payments on Mortgage-Backed Securities


81



114Purchases


(34
)


(610
)Proceeds from Disposition of Foreclosed Real Estate






42Net Cash Used in Investing Activities


(16,066
)


(10,578
)Cash Flows from Financing ActivitiesNet Increase in Deposits


31,576



7,786Proceeds from Advances from Federal Home Loan Bank


21,000



47,950Repayment of Advances from Federal Home Loan Bank


(25,490
)


(38,829
)Dividends Paid


(293
)


(298
)Acquisition of Treasury Stock


(207
)


(78
)Net Increase (Decrease) in Advances from Borrowers for Taxes and
    Insurance


68



(40
)Stock Purchase Deposit Escrow






4,556Stock Purchase Deposit Escrow Refunded






(8,131
)Net Cash Provided by Financing Activities


26,654



12,916Net (Decrease) Increase in Cash and Cash Equivalents


(1,170
)


2,644Cash and Cash Equivalents, Beginning of Year


10,007



7,363Cash and Cash Equivalents, End of Year

$
8,837


$
10,007Supplemental Disclosure of Cash Flow InformationInterest Paid on Deposits and Borrowed Funds

$
3,501


$
3,826Income Taxes Paid


614



89Market Value Adjustment for Gain on Securities
    Available-for-Sale


2,511



4,655    48




---



##### Table of Contents



HOME
    FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
  NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
  Note 1.
    Summary
    of Significant Accounting Policies  Nature
    of Operations
        Basis
    of Presentation and Consolidation
    Use of
    Estimates
    Significant
    Group Concentrations of Credit Risk
    Cash
    and Cash Equivalents
   49




---



##### Table of Contents



Note 1.
    Summary
    of Significant Accounting
    Policies(Continued)    2010


2009(In thousands)Cash on Hand

$
320


$
406Demand Deposits at Other Institutions


6,625



4,919Federal Funds Sold


1,892



4,682Total

$
8,837


$
10,007   Securities
  Investments  Debt and Equity Securities. Available-for-Sale, Held-to-Maturity.
  held-to-maturity held-to-maturity available-for-sale
  held-to-maturity available-for-sale. available-for-sale available-for-sale
    held-to-maturity available-for-sale other-than-temporary
  Loans
    Held-for-Sale
    Loans
   50




---



##### Table of Contents



Note 1.
    Summary
    of Significant Accounting
    Policies(Continued)   Allowance
    for Loan Losses
            Off-Balance
    Sheet Credit Related Financial Instruments
    Foreclosed
    Assets
  held-for-sale
  Premises
    and Equipment
    Buildings and Improvements

10-40 YearsFurniture and Equipment

3-10 Years   Income
    Taxes
     51




---



##### Table of Contents



Note 1.
    Summary
    of Significant Accounting
    Policies(Continued)    Accounting Standards Codification
    Earnings
    per Share
    Non-Direct
    Response Advertising
      Stock-Based
    Compensation
    Reclassification
    Comprehensive
    Income
  available-for-sale
 52




---



##### Table of Contents



Note 1.
    Summary
    of Significant Accounting
    Policies(Continued)    2010


2009(In thousands)Unrealized Holding Gains on
    Available-for-Sale
    Securities

$
2,982


$
5,271Reclassification Adjustment for Gains Realized in Income


(471
)


(616
)Net Unrealized Gains


2,511



4,655Tax Effect


(854
)


(1,582
)Net-of-Tax
    Amount

$
1,657


$
3,073     2010


2009(In thousands)Net Unrealized Gain on Securities
    Available-for-Sale

$
3,176


$
665Tax Effect


(1,080
)


(226
)Net-of-Tax
    Amount

$
2,096


$
439   Recent
    Accounting Pronouncements
  The Hierarchy of Generally
    Accepted Accounting Principles FASB Accounting
    Standards
    Codification tm
       53




---



##### Table of Contents



Note 1.
    Summary
    of Significant Accounting
    Policies(Continued)  Subsequent
    Events
  other-than-temporary 1) other-than-temporary other-than-temporary
  2009-05, Fair Value Measurements and Disclosures Fair Value Measurements and Disclosures
  Transfers and Servicing
  Consolidation
   54




---



##### Table of Contents



Note 2.
    Securities    June 30, 2010Gross


GrossAmortized


Unrealized


Unrealized


FairCost


Gains


Losses


Value(In thousands)Securities Available-for-SaleDebt SecuritiesFHLMC Mortgage-Backed Certificates

$
3,031


$
175


$



$
3,206FNMA Mortgage-Backed Certificates


55,828



2,980







58,808GNMA Mortgage-Backed Certificates


115



1



1



115Total Debt Securities


58,974



3,156



1



62,129Equity Securities210,350 Shares, AMF ARM Fund


1,538



21







1,559Total Securities
    Available-for-
    Sale

$
60,512


$
3,177


$
1


$
63,688Securities Held-to-MaturityDebt SecuritiesGNMA Mortgage-Backed Certificates

$
196


$
22


$



$
218FNMA Mortgage-Backed Certificates


75



2







77FHLMC Mortgage-Backed Certificates


27



1







28Total Debt Securities


298



25







323Equity Securities (Non-Marketable)18,402 Shares  Federal Home Loan Bank


1,840











1,840Total Securities
    Held-to-
    Maturity

$
2,138


$
25


$



$
2,163   June 30, 2009Gross


GrossAmortized


Unrealized


Unrealized


FairCost


Gains


Losses


Value(In thousands)Securities Available-for-SaleDebt SecuritiesFHLMC Mortgage-Backed Certificates

$
14,237


$
333


$
10


$
14,560FNMA Mortgage-Backed Certificates


75,194



1,197



166



76,225GNMA Mortgage-Backed Certificates


136



1



2



135Total Debt Securities


89,567



1,531



178



90,920Equity Securities244,550 Shares, AMF ARM Fund


2,415







688



1,727Total Securities
    Available-for-
    Sale

$
91,982


$
1,531


$
866


$
92,647Securities Held-to-MaturityDebt SecuritiesGNMA Mortgage-Backed Certificates

$
260


$
10


$



$
270FNMA Mortgage-Backed Certificates


88



1







89FHLMC Mortgage-Backed Certificates


30











30Total Debt Securities


378



11







389Equity Securities (Non-Marketable)18,064 Shares  Federal Home Loan Bank


1,806











1,806Total Securities
    Held-to-
    Maturity

$
2,184


$
11


$



$
2,195  55




---



##### Table of Contents



Note 2.
    Securities(Continued)    Available-for-Sale


Held-to-MaturityAmortized


Fair


Amortized


FairCost


Value


Cost


Value(In thousands)Within One Year or Less

$



$



$
8


$
8One through Five Years










5



5After Five through Ten Years


723



738



120



128Over Ten Years


58,251



61,391



165



182Total

$
58,974


$
62,129


$
298


$
323   available-for-sale
    June 30, 2010Less than Twelve Months


Over Twelve MonthsGross





GrossUnrealized


Fair


Unrealized


FairLosses


Value


Losses


Value(In thousands)Securities Available-for-SaleDebt Securities Mortgage-Backed Securities

$



$



$
1


$
89Marketable Equity Securities














Total Securities
    Available-for-Sale

$



$



$
1


$
89   June 30, 2009Less than Twelve Months


Over Twelve MonthsGross





GrossUnrealized


Fair


Unrealized


FairLosses


Value


Losses


Value(In thousands)Securities Available-for-SaleDebt Securities Mortgage-Backed Securities

$
10


$
864


$
168


$
23,801Marketable Equity Securities










688



1,727Total Securities
    Available-for-Sale

$
10


$
864


$
856


$
25,528   other-than-temporary
  other-than-temporarily
 56




---



##### Table of Contents



Note 2.
    Securities(Continued)    Note 3.
    Loans
    Receivable    2010


2009(In thousands)Loans Secured by Mortgages on Real EstateSecured by
    One-to-Four
    Family Residences

$
36,257


$
22,106Commercial  Real Estate Secured


15,422



8,193Secured by Other Properties


9,079



4,884Total Mortgage Loans


60,758



35,183Commercial Loans


25,689



6,590Consumer LoansEquity and Second Mortgage


2,963



4,914Loans on Savings Accounts


285



359Equity Lines of Credit


4,069



451Automobile Loans


48



40Total Consumer and Other Loans


7,365



5,764Total Loans


93,812



47,537Less: Allowance for Loan Losses


(489
)


(466
)Unamortized Loan Fees


(267
)


(123
)Net Loans Receivable

$
93,056


$
46,948     2010


2009(In thousands)Balance  Beginning of Year

$
466


$
235Provision for Loan Losses


36



240Loan Charge-Offs


(13
)


(9
)Balance  End of Year

$
489


$
466     Under


One


Six


OverOne


to Five


to Ten


TenYear


Years


Years


Years


TotalLoans Secured by
    One-to-Four
    Family ResidentialFixed Rate

$
1,275


$
16,947


$
854


$
8,286


$
27,362Adjustable Rate






84



404



8,407



8,895Other Loans Secured by Real EstateFixed Rate


5,541



20,704



1,230



4,819



32,294All Other Loans


9,142



15,694



425







25,261Total

$
15,958


$
53,429


$
2,913


$
21,512


$
93,812  57




---



##### Table of Contents



Note 3.
    Loans
    Receivable(Continued)    Note 4.
    Accrued
    Interest Receivable    2010


2009(In thousands)Accrued Interest on:Mortgage Loans

$
214


$
156Other Loans


109



26Investments


2



1Mortgage-Backed Securities


235



360Total

$
560


$
543    Note 5.
    Premises
    and Equipment    2010


2009(In thousands)Land

$
2,051


$
727Buildings


1,224



1,183Equipment


791



7254,066



2,635Accumulated Depreciation


(1,017
)


(1,653
)Total

$
3,049


$
982      58




---



##### Table of Contents



Note 5.
    Premises
    and
    Equipment(Continued)    Year Ended June 30,

Amount2011

$
103,7442012


103,7192013


72,8642014


76,1442015


76,144Thereafter


134,929Total Minimum Future Rental Payments

$
567,544    Note 6.
    Deposits    Weighted


WeightedAverage


AverageRate at


Rate at


2010


20096/30/2010


6/30/2009


Amount


Percent


Amount


Percent(Dollars in thousands)Non-Interest Bearing


0.00
%


0.00
%

$
9,890



8.40
%

$
2,222



2.58
%NOW Accounts


0.12
%


0.19
%


8,240



7.00



6,315



7.33Money Market


1.19
%


1.40
%


20,436



17.36



8,752



10.16Passbook Savings


0.42
%


0.50
%


5,266



4.47



6,056



7.0343,832



37.23



23,345



27.10Certificates of Deposit


2.66
%


3.43
%


73,890



62.77



62,801



72.90Total Deposits









$
117,722



100.00
%

$
86,146



100.00
%     2010


2009Amount


Percent


Amount


Percent(Dollars in thousands)0.00% to 0.99%

$
12



0.02
%

$
134



0.21
%1.00% to 1.99%


30,309



41.02



11,970



19.062.00% to 2.99%


16,734



22.65



13,030



20.753.00% to 3.99%


17,497



23.68



21,405



34.084.00% to 4.99%


7,865



10.64



12,990



20.695.00% to 5.99%


1,473



1.99



3,272



5.21Total Deposits

$
73,890



100.00
%

$
62,801



100.00
%  59




---



##### Table of Contents



Note 6.
    Deposits(Continued)    WeightedAverageYear Ending June 30,

Amount


Percent


Rate(Dollars in thousands)2011

$
38,369



51.93
%


2.2
%2012


17,072



23.10



3.0
%2013


7,061



9.56



3.4
%2014


2,574



3.48



3.6
%2015


8,814



11.93



3.3
%Total

$
73,890



100.00
%     2010


2009(In thousands)NOW and Money Market

$
205


$
59Passbook Savings


23



26Certificates of Deposit


2,010



2,378Total

$
2,238


$
2,463     Note 7.
    Advances
    from Federal Home Loan Bank of Dallas      Advance TotalContract Rate

2010


2009(In thousands)0.00% to 0.99%

$
1,500


$
1.00% to 1.99%


4,000



2,0002.00% to 2.99%


4,203



5,4623.00% to 3.99%


9,763



12,4684.00% to 4.99%


7,910



9,6545.00% to 5.99%


4,131



6,413Total

$
31,507


$
35,997  60




---



##### Table of Contents



Note 7.
    Advances
    from Federal Home Loan Bank of
    Dallas(Continued)  (in thousands):
  Years Ended June 30,

Amount2011

$
9,6162012


11,4222013


5,9072014


1,9152015


236Thereafter


2,411Total

$
31,507    Note 8.
    Commitments  Construction
    Commitment
    Lease
    Commitments
    (in
    thousands)
  Years Ended June 30,

Amount2011

$
482012


482013


482014


482015


28Total

$
220   Employment
    Contracts
  (in thousands)
  Years Ended June 30,

Amount2011

$
2912012


2912013


155Total

$
737   61




---



##### Table of Contents



Note 9.
    Income
    Taxes    2010


2009(In thousands)FederalCurrent

$
700


$
50Deferred


(27
)


203StateCurrent






Total

$
673


$
253     2010


2009(In thousands)Computed at Expected Statutory Rate

$
457


$
261Non-Deductible Capital Losses


214



Other


2



(8
)Provision for Income Tax Expense

$
673


$
253   available-for-sale
    2010


2009(In thousands)Deferred Tax AssetsStock Option Compensation

$
100


$
80Loans Receivable  Bad Debt Loss Allowance


60



52Capital Losses


185



345



132Valuation Allowance


(185
)


Net Deferred Tax Assets


160



132Deferred Tax LiabilitiesMarket Value Adjustment to
    Available-for-Sale
    Securities


(1,081
)


(226
)Net Deferred Tax Liabilities

$
(921
)

$
(94
)  62




---



##### Table of Contents



Note 9.
    Income
    Taxes(Continued)      Note 10.
    Other
    Non-Interest Income and Expense    2010


2009(In thousands)Other Non-Interest IncomeCommissions and Other

$
30


$
18Service Fees on NOW Accounts


14



14Late Charges


11



4Total Other Non-Interest Income

$
55


$
36Other Non-Interest ExpenseLegal Fees

$
203


$
131Audit and Examination Fees


174



122Advertising


136



35Data Processing


112



77NOW Account Expense


91



75Office Supplies


86



42Miscellaneous


78



63Loan Expenses


67



6Deposit Insurance Premiums


64



78Telephone


63



48Automobile Expense, Including Depreciation


46



32Consulting Fees


43



27Business Insurance and Bonds


37



34Postage


30



23Organization Dues and Publications


13



10Registration Fees


7



11Charitable Contributions


7



3Total Other Non-Interest Expense

$
1,257


$
817   63




---



##### Table of Contents



Note 11.
    Retirement
    Plans    Note 12.
    Employee
    Stock Ownership Plan            2010


2009Allocated Shares


28,472



19,930Shares Released for Allocation


2,847



2,847Unreleased Shares


82,568



91,110Total ESOP Shares


113,887



113,887Fair Value of Unreleased Shares (In Thousands)

$
661


$
615Stock Price at June 30, 2010 and 2009, Respectively

$
8.00


$
6.75    Note 13.
    Recognition
    and Retention Plan   64




---



##### Table of Contents



Note 13.
    Recognition
    and Retention
    Plan(Continued)          Unawarded Shares


Awarded Shares2010


2009


2010


2009Balance  Beginning of Year


2,290



1,952



25,214



38,333Purchased by Plan














Granted














Forfeited


793



338



(793
)


(338
)Earned and Issued










(12,611
)


(12,781
)Balance  End of Year


3,083



2,290



11,810



25,214    Note 14.
    Stock
    Option Plan     65




---



##### Table of Contents



Note 14.
    Stock
    Option
    Plan(Continued)    WeightedWeighted


AverageAverage


Remaining


AggregateNumber of


Exercise


Contract


IntrinsicShares


Price


Term


ValueOutstanding at June 30, 2009


158,134


$
9.85Granted


Exercised


Forfeited


(1,960
)Outstanding at June 30, 2010


156,174


$
9.85



5.13


$
Options Exercisable at June 30, 2010


126,507


$
9.85



5.13


$
Outstanding at June 30, 2008


169,762


$
9.85Granted


Exercised


Forfeited


(11,628
)Outstanding at June 30, 2009


158,134


$
9.85



6.13


$
Options Exercisable at June 30, 2009


105,858


$
9.85



6.13


$
     Dividend Yield


2.0
%Expected Term


10 YearsRisk-Free Interest Rate


4.13
%Expected Life


10 YearsExpected Volatility


8.59
%     WeightedAverageNumber of


Grant-DateShares


Fair ValueNonvested at June 30, 2009


52,276


$
9.85Granted






Vested


(20,649
)


9.85Forfeited


(1,960
)


9.85Nonvested at June 30, 2010


29,667


$
9.85     Note 15.
    Off-Balance
    Sheet Activities  Credit
    Related Financial Instruments
   66




---



##### Table of Contents



Note 15.
    Off-Balance
    Sheet
    Activities(Continued)        Contract Amount2010


2009(In thousands)Commitments to Grant Loans

$
14,226


$
6,935Unfunded Commitments Under Lines of Credit


5,159



3,672$
19,385


$
10,607Fixed Rate Loans (4.375%  6.125)%

$
19,385


$
10,607Variable Rate Loans






$
19,385


$
10,607       Cash
    Deposits
    Regional
    Credit Concentration
    Other
    Credit Concentrations
    Interest
    Rate Floors and Caps
   67




---



##### Table of Contents



Note 15.
    Off-Balance
    Sheet
    Activities(Continued)    Note 16.
    Related
    Party Events    th
  2010


2009(In thousands)Balance  Beginning of Year

$
1,621


$
430Additions


73



1,329Principal Payments


(202
)


(138
)Balance  End of Year

$
1,492


$
1,621     Note 17.
    Merger
    and Stock Issuance Costs      Note 18.
    Regulatory
    Matters   68




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##### Table of Contents



Note 18.
    Regulatory
    Matters(Continued)          Required for CapitalActual

Adequacy PurposesAmount

Ratio

Amount

Ratio(Dollars in thousands)June 30, 2010Core Capital


(1
)

$
29,989



16.47
%

$
5,462



3.00
%Tangible Capital


(1
)


29,989



16.47
%


2,731



1.50
%Total Risk-Based Capital


(2
)


30,478



33.67
%


7,241



8.00
%June 30, 2009Core Capital


(1
)

$
29,163



18.93
%

$
4,623



3.00
%Tangible Capital


(1
)


29,163



18.93
%


2,311



1.50
%Total Risk-Based Capital


(2
)


29,629



54.77
%


4,328



8.00
%     Required to beActual

Well CapitalizedAmount

Ratio

Amount

Ratio(Dollars in thousands)June 30, 2010Tier 1 Leverage Capital


(1
)

$
29,989



16.47
%

$
9,103



5.00
%Tier 1 Risk-Based Capital


(2
)


29,989



33.13
%


5,431



6.00
%Total Risk-Based Capital


(2
)


30,478



33.67
%


9,051



10.00
%June 30, 2009Tier 1 Leverage Capital


(1
)

$
29,163



18.93
%

$
7,704



5.00
%Tier 1 Risk-Based Capital


(2
)


29,163



53.91
%


3,246



6.00
%Total Risk-Based Capital


(2
)


29,629



54.77
%


5,410



10.00
%     (1)
    
    Amounts and Ratios to Adjusted Total Assets(2)
    
    Amounts and Ratios to Total Risk-Weighted Assets 69




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##### Table of Contents



Note 18.
    Regulatory
    Matters(Continued)     Minimum for CapitalActual

Adequacy PurposesJune 30, 2010

Ratio

Amount

Ratio

Amount(Dollars in thousands)Total Equity, and Ratio to Total Assets


17.38
%

$
32,206Investments in and Advances to Nonincludable Subsidiaries






(121
)Unrealized Gains on Securities
    Available-for-Sale






(2,096
)Tangible Capital, and Ratio to Adjusted Total Assets


16.47
%

$
29,989



1.5
%

$
2,731Tier 1 (Core) Capital, and Ratio to Adjusted Total Assets


16.47
%

$
29,989



3.0
%

$
5,462Tier 1 (Core) Capital, and Ratio to Risk-Weighted Assets


33.13
%

$
29,989Allowance for Loan Losses






489Equity Investment






Total Risk-Based Capital, and Ratio to Risk-Weighted Assets


33.67
%

$
30,478



8.0
%

$
7,241Total Assets





$
185,350Adjusted Total Assets





$
182,053Risk-Weighted Assets





$
90,514   Minimum for CapitalActual


Adequacy PurposesJune 30, 2009

Ratio


Amount


Ratio


Amount(Dollars in thousands)Total Equity, and Ratio to Total Assets


19.19
%

$
29,723Investments in and Advances to Nonincludable Subsidiaries






(121
)Unrealized Gains on Securities
    Available-for-Sale






(439
)Tangible Capital, and Ratio to Adjusted Total Assets


18.93
%

$
29,163



1.5
%

$
2,311Tier 1 (Core) Capital, and Ratio to Adjusted Total Assets


18.93
%

$
29,163



3.0
%

$
4,623Tier 1 (Core) Capital, and Ratio to Risk-Weighted Assets


53.91
%

$
29,163Allowance for Loan Losses






466Equity Investment






Total Risk-Based Capital, and Ratio to Risk-Weighted Assets


54.77
%

$
29,629



8.0
%

$
4,328Total Assets





$
154,872Adjusted Total Assets





$
154,086Risk-Weighted Assets





$
54,095    Note 19.
    Restrictions
    on Dividends   70




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##### Table of Contents



Note 20.
    Fair
    Value of Financial Instruments  Financial Instruments
      Cash
    and Cash Equivalents
    Securities
    to be
    Held-to-Maturity
    and
    Available-for-Sale
    Mortgage
    Loans
    Held-for-Sale
    Loans
    Receivable
    Deposit
    Liabilities
    Advances
    from Federal Home Loan Bank
    Off-Balance
    Sheet Credit-Related Instruments
   71




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##### Table of Contents



Note 20.
    Fair
    Value of Financial
    Instruments(Continued)       2010


2009Carrying


Estimated


Carrying


EstimatedValue


Fair Value


Value


Fair Value(In thousands)


(In thousands)Financial AssetsCash and Cash Equivalents

$
8,837


$
8,837


$
10,007


$
10,007Securities
    Available-for-Sale


63,688



63,688



92,647



92,647Securities to be
    Held-to-Maturity


2,138



2,163



2,184



2,195Loans
    Held-for-Sale


13,403



13,403



1,277



1,277Loans Receivable


93,056



109,322



46,948



50,461Financial LiabilitiesDeposits


117,722



120,460



86,146



88,314Advances from FHLB


31,507



33,175



35,997



37,088Off-Balance Sheet ItemsMortgage Loan Commitments


142



142



69



69     Note 21.
    Fair
    Value Accounting  Fair
    Value Measurements
  
    Defines fair value as the price that would be received to sell
    an asset or paid to transfer a liability, in either case,
    through an orderly transaction between market participants at a
    measurement date and establishes a framework for measuring fair
    value;
    Establishes a three-level hierarchy for fair value measurements
    based upon the transparency of inputs to the valuation of an
    asset or liability as of the measurement date;
    Nullifies the guidance in
    EITF 02-3,
    which required the deferral of profit at inception of a
    transaction involving a derivative financial instrument in the
    absence of observable data supporting the valuation technique;
    Eliminates large position discounts for financial instruments
    quoted in active markets and requires consideration of the
    companys creditworthiness when valuing
    liabilities; and
    Expands disclosures about instrument that are measured at fair
    value.    
    Level 1  Fair value is based upon quoted prices
    (unadjusted) for identical assets or liabilities in active
    markets in which the Company can participate. 72




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##### Table of Contents



Note 21.
    Fair
    Value
    Accounting(Continued)   
    Level 2  Fair value is based upon
    (a) quoted prices for similar assets or liabilities in
    active markets; (b) quoted prices for identical or similar
    assets or liabilities in markets that are not active, that is,
    markets in which there are few transactions for the asset or
    liability, the prices are not current, or price quotations vary
    substantially either over time or among market makers, or in
    which little information is released publicly; (c) inputs
    other than quoted prices that are observable for the asset or
    liability or (d) inputs that are derived principally from
    or corroborated by observable market data by correlation or
    other means.
    Level 3  Fair value is based upon inputs that
    are unobservable for the asset or liability. These inputs
    reflect the Companys own assumptions about the assumptions
    that market participants would use in pricing the asset or
    liability (including assumptions about risk). These inputs are
    developed based on the best information available in the
    circumstances, which include the Companys own data. The
    Companys own data used to develop unobservable inputs are
    adjusted if information indicates that market participants would
    use different assumptions.      Fair Value Measurements Using:Quoted Prices inActive Markets for


Significant OtherIdentical Assets


Observable Inputs(Level 1)


(Level 2)


TotalJune 30, 2010Available-for-SaleDebt SecuritiesFHLMC

$



$
3,206


$
3,206FNMA






58,808



58,808GNMA






115



115Equity SecuritiesARM Fund


1,559







1,559Total

$
1,559


$
62,129


$
63,688   Fair Value Measurements Using:Quoted Prices inActive Markets for


Significant OtherIdentical Assets


Observable Inputs(Level 1)


(Level 2)


TotalJune 30, 2009Available-for-SaleDebt SecuritiesFHLMC

$



$
14,560


$
14,560FNMA






76,225



76,225GNMA






135



135Equity SecuritiesARM Fund


1,727







1,727Total

$
1,727


$
90,920


$
92,647  73




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##### Table of Contents



Note 21.
    Fair
    Value
    Accounting(Continued)    Note 22.
    Earnings
    Per Common Share    2010


2009Average Common Shares Issued


3,558,958



3,558,958Average Treasury Shares Held


(205,381
)


(181,874
)Average Unearned ESOP Shares


(85,416
)


(91,110
)Average Unearned RRP Trust Shares


(16,586
)


(29,220
)Weighted Average Number of Common Shares Used in Basic EPS


3,251,575



3,256,754Effect of Dilutive Securities Stock Options






Weighted Average Number of Common Shares and Dilutive Potential
    Common Shares Used in Dilutive EPS


3,251,575



3,256,754     Note 23.
    Subsequent
    Events    Conversion
    and Reorganization to Stock Holding Company
     74




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##### Table of Contents



Note 23.
    Subsequent
    Events(Continued)        Note 24.
    Parent
    Company Financial Statements    HOME
    FEDERAL BANCORP, INC. OF LOUISIANA
  Condensed
    Balance Sheets
 June 30,
    2010 and 2009
  2010


2009(In thousands)AssetsCash and Cash Equivalents

$
888


$
1,125Investment in Subsidiary


32,207



29,723Other Assets


270



462Total Assets

$
33,365


$
31,310Liabilities and Stockholders EquityOther Liabilities

$



$
Stockholders Equity


33,365



31,310Total Liabilities and Stockholders Equity

$
33,365


$
31,310  75




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##### Table of Contents



Note 24.
    Parent
    Company Financial
    Statements(Continued)  HOME
    FEDERAL BANCORP, INC. OF LOUISIANA
  Condensed
    Statements of Operations
 For the
    Years Ended June 30, 2010 and 2009
  2010


2009(In thousands)Equity in Undistributed Earnings of Subsidiary

$
825


$
701Interest Income


50



52Total Income


875



753Operating Expenses


285



213Conversion and Merger Expense






133Total Expenses


285



346Income Before Income Tax Benefit


590



407Income Tax Benefit


(80
)


(108
)Net Income

$
670


$
515   HOME
    FEDERAL BANCORP, INC. OF LOUISIANA
  Condensed
    Statements of Cash Flows
 For the
    Years Ended June 30, 2010 and 2009
  2010


2009(In thousands)Operating ActivitiesNet Income

$
670


$
515Adjustments to Reconcile Net Income to Net Cash Provided by
    (Used in) Operating ActivitiesEquity in Undistributed Earnings of Subsidiary


(825
)


(701
)Decrease in Other Assets


192



30Decrease in Other Liabilities






(103
)Net Cash Provided by (Used in) Operating Activities


37



(259
)Investing ActivitiesNet Cash Provided by Investing Activities






Financing ActivitiesProceeds Received from Subsidiary on Stock Compensation Programs


226



225Acquisition of Treasury Stock


(207
)


(78
)Dividends Paid


(293
)


(298
)Net Cash Used in Financing Activities


(274
)


(151
)Decrease in Cash and Cash Equivalents


(237
)


(410
)Cash and Cash Equivalents, Beginning of Year


1,125



1,535Cash and Cash Equivalents, End of Year

$
888


$
1,125 
 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial
Disclosure
  
 Item 9A(T). Controls and Procedures
 (a)
    
    Our management evaluated, with the participation of our principal executive
officer and principal financial officer, the effectiveness of our disclosure controls
and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934) as of the end of the period covered by this report. Based on
such evaluation, our principal executive officer and principal financial officer have
concluded that our disclosure controls and procedures are designed to ensure that
information required to be disclosed by us in the reports that we file or submit under
the Securities Exchange Act of 1934 is recorded, processed, summarized and reported
within the time periods specified in the SECs rules and regulations and are operating
in an effective manner.
   76




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##### Table of Contents



(b)
    
    Managements Report on Internal Control Over Financial ReportingManagement is responsible for establishing and maintaining adequate internal control
over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f).
The Companys internal control over financial reporting includes those policies and
procedures that (i) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the
assets of the Company; (ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of
the Company are being made only in accordance with authorizations of management and
directors of the Company; and (iii) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of
the Companys assets that could have a material effect on the financial statements.Internal control over financial reporting is designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of
financial statements prepared for external purposes in accordance with generally
accepted accounting principles. Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.Under the supervision and with the participation of management, including our
principal executive officer and principal financial officer, we conducted an
evaluation of the effectiveness of our internal control over financial reporting
based on the framework in Internal Control  Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission. Based on our
evaluation under the framework in Internal Control  Integrated Framework,
management concluded that our internal control over financial reporting was
effective as of June 30, 2010.This Annual Report does not include an attestation report of the Companys
registered public accounting firm regarding internal control over financial
reporting. Managements report was not subject to attestation by the Companys
registered public accounting firm pursuant to temporary rules of the Securities and
Exchange Commission that permit the Company to provide only managements report in
this Annual Report.(c)
    
    No change in the Companys internal control over financial reporting (as
defined in rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934)
occurred during the most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, its internal control over financial reporting.
 
 Item 9B. Other Information
  
 PART III
 
 Item 10. Directors, Executive Officers and Corporate Governance
  Code of Ethics
 77




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##### Table of Contents



Item 11. Executive Compensation
  
 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
 Security Ownership of Certain Beneficial Owners and Management
 Equity Compensation Plan Information
 Number of SecuritiesNumber of Securities to be
    
    Weighted-Average
    
    Remaining Available forIssued Upon Exercise of
    
    Exercise Price of
    
    Future Issuance Under EquityOutstanding Options,
    
    Outstanding
    
    Compensation PlansWarrants
    
    Options, Warrants
    
    (Excluding Securitiesand Rights
    
    and Rights
    
    Reflected in Column (a))Plan Category
    
    (a)
    
    (b)
    
    (c)Equity compensation plans
approved by security
holders
    
    
    167,984
    (1)
    
    $
    9.85
    (1)
    
    
    21,298Equity compensation plans
not approved by security
holders
    
    
    
    
    
    
    
    
    
    Total
    
    
    167,984
    
    
    $
    9.85
    
    
    
    21,298
 
 (1)
    
    Includes 11,810 shares subject to restricted stock grants which were not vested as of June
30, 2010. The weighted-average exercise price excludes such restricted stock grants. 
 Item 13. Certain Relationships and Related Transactions and Director Independence
  
 Item 14. Principal Accountant Fees and Services
  78




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##### Table of Contents



PART IV
 
 Item 15. Exhibits and Financial Statement Schedules
          No.
    
    Exhibits
    
    Location3.1
    
    
    Federal Stock Charter of Home Federal Bancorp, Inc. of Louisiana
    
    
    (1
    )3.2
    
    
    Amended and Restated Bylaws of Home Federal Bancorp, Inc. of Louisiana
    
    
    (2
    )4.0
    
    
    Stock Certificate of Home Federal Bancorp, Inc. of Louisiana
    
    
    (1
    )10.1
    
    
    Home Federal Bancorp, Inc. of Louisiana 2005 Stock Option Plan
    
    
    (3
    )10.2
    
    
    Home Federal Bancorp, Inc. of Louisiana 2005 Recognition and
Retention Plan and Trust Agreement
    
    
    (3
    )23.0
    
    
    Consent of LaPorte, Sehrt, Romig & Hand
    
    Filed Herewith31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer
    
    Filed Herewith31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer
    
    Filed Herewith32.0
    
    
    Section 1350 Certifications
    
    Filed Herewith
 
 (1)
    
    Incorporated herein by reference from Home Federal Bancorps Registration Statement on Form
SB-2, as amended, filed with the SEC on September 15, 2004 (SEC File No. 333-119026).(2)
    
    Incorporated herein by reference from Home Federal Bancorps Annual Report on Form 10-K filed
with the SEC on September 28, 2009 (SEC File No. 000-51117).(3)
    
    Incorporated herein by reference from Home Federal Bancorps Definitive Schedule 14A filed
with the SEC on June 29, 2005 (SEC File No. 000-51117). 79




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##### Table of Contents



SIGNATURES
  HOME FEDERAL BANCORP, INC. OF LOUISIANADate:  September 3, 2010
    By:
    /s/ Daniel R. HerndonDaniel R. HerndonChairman, President, and Chief Executive Officer  Name
    
    Title
    
    Date/s/ Daniel R. Herndon

Daniel R. Herndon
    
    Chairman of the Board,
President and Chief
Executive Officer(Principal Executive Officer)
    
    September 3, 2010/s/ James R. Barlow

James R. Barlow
    
    Director, Executive Vice
President and Chief
Operating Officer
    
    September 3, 2010/s/ Clyde D. Patterson

Clyde D. Patterson
    
    Director and Executive Vice
President and Chief
Financial Officer(Principal Financial and
Accounting Officer)
    
    September 3, 2010/s/ Walter T. Colquitt III

Walter T. Colquitt III
    
    Director
    
    September 3, 2010David A. Herndon, III
    
    Director
    
    September ___, 2010/s/ Scott D. Lawrence

Scott D. Lawrence
    
    Director
    
    September 3, 2010/s/ Mark M. Harrison

Mark M. Harrison
    
    Director
    
    September 3, 2010Woodus K. Humphrey
    
    Director
    
    September ___, 2010/s/ Amos L. Wedgeworth, Jr.

Amos L. Wedgeworth, Jr.
    
    Director
    
    September 3, 2010/s/ Timothy W. Wilhite, Esq.

Timothy W. Wilhite, Esq
    
    Director
    
    September 3, 2010
 80