##### 



UNITED
STATESSECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-KSB
  þ
    
    Annual report under Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the fiscal year ended June 30, 2006
 OR
 o
    
    Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934
 Commission File Number 000-51117
 HOME FEDERAL BANCORP, INC. OF LOUISIANA
  Federal
    
    86-1127166(State or Other Jurisdiction of
    
    (I.R.S. EmployerIncorporation or Organization)
    
    Identification Number)624 Market Street, Shreveport, Louisiana
    
    71101(Address of Principal Executive Offices)
    
    (Zip Code)
 (318) 222-1145
 Not Applicable
  Common Stock (par value $.01 per share)
  o
 þ o
 þ
 o þ
   3,538,258
 DOCUMENTS INCORPORATED BY REFERENCE
  (1)
    
    Portions of the Annual Report to Shareholders are incorporated into Part II, Items 5 through
7 and Part III, Item 13 of this Form 10-KSB.(2)
    
    Portions of the Definitive Proxy Statement for the 2006 Annual Meeting of Shareholders are
incorporated into Part III, Items 9 through 12 and Item 14.
 o þ




---



##### 



Home Federal Bancorp Inc. of Louisiana  Form 10-KSB
For the Year Ended June 30, 2006
 PART I.Item 1.
    
    Description of Business
    
    
    1Item 2.
    
    Description of Property
    
    
    22Item 3.
    
    Legal Proceedings
    
    
    22Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    22PART II.Item 5.
    
    Market for Common Equity, Related Stockholder Matters and Small Business Issuer
Purchases of Equity Securities
    
    
    23Item 6.
    
    Managements Discussion and Analysis or Plan of Operation
    
    
    23Item 7.
    
    Financial Statements
    
    
    23Item 8.
    
    Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
    
    
    24Item 8A.
    
    Controls and Procedures
    
    
    24Item 8B.
    
    Other Information
    
    
    24PART III.Item 9.
    
    Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a) of the Exchange Act
    
    
    24Item 10.
    
    Executive Compensation
    
    
    24Item 11.
    
    Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters
    
    
    24Item 12.
    
    Certain Relationships and Related Transactions
    
    
    25Item 13.
    
    Exhibits
    
    
    25Item 14.
    
    Principal Accountant Fees and Services
    
    
    26
 i




---



##### 



PART I
 Item 1. Description of Business
 General
     Market Area
   Competition
  1




---



##### 



Subsidiaries
  Employees
  Lending Activities
 General.
    Loan Portfolio Composition
 2




---



##### 



June 30,2006
    
    
    2005Amount
    
    
    %
    
    
    Amount
    
    
    %(Dollars in Thousands)Real estate loans:One- to four-family residential
    
    $
    13,721
    
    
    
    64.72
    %
    
    $
    19,301
    
    
    
    80.79
    %Other mortgage
    
    
    3,164
    
    
    
    14.92
    
    
    
    837
    
    
    
    3.50Total real estate loans
    
    
    16,885
    
    
    
    79.64
    
    
    
    20,138
    
    
    
    84.29Consumer loans:Home equity loans and second
mortgage loans
    
    
    3,287
    
    
    
    15.50
    
    
    
    2,776
    
    
    
    11.62Savings account
    
    
    613
    
    
    
    2.89
    
    
    
    470
    
    
    
    1.97Equity lines of credit
    
    
    374
    
    
    
    1.76
    
    
    
    500
    
    
    
    2.09Other
    
    
    43
    
    
    
    .21
    
    
    
    6
    
    
    
    .03Total consumer loans
    
    
    4,317
    
    
    
    20.36
    
    
    
    3,752
    
    
    
    15.71Total loans
    
    
    21,202
    
    
    
    100.00
    %
    
    
    23,890
    
    
    
    100.00
    %Less:Allowance for loan losses
    
    
    (235
    )
    
    
    
    
    
    
    235Deferred loan fees
    
    
    (101
    )
    
    
    
    
    
    
    80Net loans(1)
    
    $
    20,866
    
    
    
    
    
    
    $
    23,575
 
 (1)
    
    Does not include loans held for sale amounting to $70,000 at June 30, 2005. Origination of Loans.
    3




---



##### 



Year Ended June 30,2006
    
    
    2005(In Thousands)Loan originations:One- to four-family residential
    
    $
    12,076
    
    
    $
    6,799Other mortgage
    
    
    2,312
    
    
    
    843Consumer
    
    
    3,045
    
    
    
    3,583Total loan originations
    
    
    17,433
    
    
    
    11,225Loans purchased
    
    
    
    
    
    
    2,086Total loan originations
and loans purchased
    
    
    17,433
    
    
    
    13,311Loans sold
    
    
    (2,944
    )
    
    
    (2,146
    )Loan principal repayments
    
    
    (17,247
    )
    
    
    (10,327
    )Total loans sold and principal
repayments
    
    
    (20,191
    )
    
    
    (12,473
    )Increase due to other items, net (1)
    
    
    49
    
    
    
    58Net (decrease) increase in loan portfolio
    
    $
    (2,709
    )
    
    $
    896
 
 (1)
    
    Other items consist of deferred loan fees, the allowance for loan losses and
loans held for sale at year end.   Contractual Terms to Final Maturities
 4




---



##### 



One- toFour-Family
    
    
    OtherResidential
    
    
    Mortgage
    
    
    Consumer
    
    
    Total(In Thousands)Amounts due after June 30, 2006 in:One year or less
    
    $
    1,433
    
    
    $
    
    
    
    $
    988
    
    
    $
    2,421After one year through two years
    
    
    64
    
    
    
    
    
    
    
    183
    
    
    
    247After two years through three years
    
    
    201
    
    
    
    
    
    
    
    49
    
    
    
    250After three years through five years
    
    
    297
    
    
    
    
    
    
    
    317
    
    
    
    614After five years through ten years
    
    
    1,114
    
    
    
    25
    
    
    
    1,006
    
    
    
    2,145After ten years through fifteen years
    
    
    1,131
    
    
    
    
    
    
    
    728
    
    
    
    1,859After fifteen years
    
    
    9,481
    
    
    
    3,139
    
    
    
    1,046
    
    
    
    13,666Total
    
    $
    13,721
    
    
    $
    3,164
    
    
    $
    4,317
    
    
    $
    21,202
  Floating orFixed-Rate
    
    
    Adjustable-Rate
    
    
    Total(In Thousands)One- to four-family
residential
    
    $
    10,686
    
    
    $
    3,035
    
    
    $
    13,721Other mortgage
    
    
    3,164
    
    
    
    
    
    
    
    3,164Consumer
    
    
    4,291
    
    
    
    26
    
    
    
    4,317Total
    
    $
    18,141
    
    
    $
    3,061
    
    
    $
    21,202
  One- to Four-Family Residential Real Estate Loans.
    5




---



##### 



Consumer Loans.
     Loan Origination and Other Fees.
 Asset Quality
 General.
   6




---



##### 



Delinquent Loans
 June 30, 2006
    
    
    June 30, 200530-89
    
    
    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 loans
    
    
    3
    
    
    
    40
    
    
    
    1
    
    
    
    1
    
    
    
    2
    
    
    $
    158
    
    
    
    
    
    
    $
    Other mortgage loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consumer loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total delinquent loans
    
    
    3
    
    
    
    40
    
    
    
    1
    
    
    
    1
    
    
    
    2
    
    
    $
    158
    
    
    
    
    
    
    $
    Delinquent loans to total net
loans
    
    
    
    
    
    
    .19
    %
    
    
    
    
    
    
    
    %
    
    
    
    
    
    
    .67
    %
    
    
    
    
    
    
    
    %Delinquent loans to total loans
    
    
    
    
    
    
    .19
    %
    
    
    
    
    
    
    
    %
    
    
    
    
    
    
    .66
    %
    
    
    
    
    
    
    
    %
 Non-Performing Assets.
 June 30,2006
    
    
    2005(Dollars in Thousands)Non-accruing loans:One- to four-family residential
    
    $
    
    
    
    $
    Other mortgage
    
    
    
    
    
    
    Consumer
    
    
    
    
    
    
    Total non-accruing loans
    
    $
    
    
    
    $
    Accruing loans 90 days or more past due:One- to four-family residential
    
    $
    1
    
    
    $
    Other mortgage
    
    
    
    
    
    
    Consumer
    
    
    
    
    
    
    Total accruing loans 90 days or more past due
    
    
    1
    
    
    
    Total non-performing loans(1)
    
    
    1
    
    
    
    Real estate owned, net
    
    
    
    
    
    
    Total non-performing assets
    
    $
    1
    
    
    $
    Total non-performing loans as a percent of loans, net
    
    
    n/m
    
    
    
    
    %Total non-performing assets as a percent of total assets
    
    
    n/m
    
    
    
    
    %
 
 (1)
    
    Non-performing loans consist of non-accruing loans plus accruing loans 90 days or more
past due. Classified Assets.
 7




---



##### 



Allowance for Loan Losses.
   At or For the Year Ended June 30,2006
    
    2005(Dollars in Thousands)Total loans outstanding at end of period
    
    $
    21,202
    
    
    $
    23,960Average loans outstanding
    
    
    20,141
    
    
    
    22,973Allowance for loan losses, beginning of period
    
    
    235
    
    
    
    235Provision for loan losses
    
    
    
    
    
    
    Allowance for loan losses, end of period
    
    
    235
    
    
    
    235Allowance for loan losses as a percent
of non-performing loans
    
    
    23,500.00
    %
    
    
    
    %Allowance for loan losses as a percent
of loans outstanding
    
    
    1.11
    %
    
    
    0.98
    %
  June 30,2006
    
    
    2005Loan
    
    
    
    
    
    
    LoanCategory
    
    
    
    
    
    
    CategoryAmount
    
    
    as a %
    
    
    Amount
    
    
    as a %of
    
    
    of Total
    
    
    of
    
    
    of TotalAllowance
    
    
    Loans
    
    
    Allowance
    
    
    Loans(Dollars in Thousands)One- to four-family residential
    
    $
    235
    
    
    
    64.72
    %
    
    $
    235
    
    
    
    80.79
    %Other mortgage
    
    
    
    
    
    
    14.92
    
    
    
    
    
    
    
    3.50Consumer
    
    
    
    
    
    
    20.36
    
    
    
    
    
    
    
    15.71Total
    
    $
    235
    
    
    
    100.00
    %
    
    $
    235
    
    
    
    100.00
    %
 8




---



##### 



Investment Securities
   June 30,2006
    
    
    2005Amortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    Value(In Thousands)Securities Held to Maturity:Corporate securities
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    FHLB stock
    
    
    649
    
    
    
    649
    
    
    
    632
    
    
    
    632Municipal obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Mortgage-backed securities
    
    
    776
    
    
    
    793
    
    
    
    981
    
    
    
    1,024Total Securities Held to Maturity
    
    
    1,425
    
    
    
    1,442
    
    
    
    1,613
    
    
    
    1,656Securities Available for Sale:FHLB and FNMA Notes
    
    
    1,992
    
    
    
    1,975
    
    
    
    1,976
    
    
    
    1,980Corporate securities
    
    
    2,180
    
    
    
    2,121
    
    
    
    2,094
    
    
    
    2,057Mortgage-backed securities
    
    
    84,243
    
    
    
    79,598
    
    
    
    71,222
    
    
    
    71,723Total Securities Available for Sale
    
    
    88,415
    
    
    
    83,694
    
    
    
    75,292
    
    
    
    75,760Total Investment Securities
    
    $
    89,840
    
    
    $
    85,136
    
    
    $
    76,905
    
    
    $
    77,416
  Amounts at June 30, 2006 Which Mature InOver OneOne
    
    
    Weighted
    
    
    Year
    
    
    Weighted
    
    
    Over Five
    
    
    Weighted
    
    
    Over
    
    
    WeightedYear
    
    
    Average
    
    
    Through
    
    
    Average
    
    
    Through
    
    
    Average
    
    
    Ten
    
    
    Averageor Less
    
    
    Yield
    
    
    Five Years
    
    
    Yield
    
    
    Ten Years
    
    
    Yield
    
    
    Years
    
    
    Yield(Dollars in Thousands)Bonds and other
debt securities:FHLB and FNMA
Notes
    
    $
    990
    
    
    
    3.82
    %
    
    $
    985
    
    
    
    3.75
    %
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %Mortgage-backed
Securities
    
    
    2
    
    
    
    6.93
    
    
    
    10
    
    
    
    7.14
    
    
    
    221
    
    
    
    6.33
    
    
    
    80,157
    
    
    
    4.92Equity securities(1):ARM Fund
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,121
    
    
    
    4.06FHLB stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    649
    
    
    
    4.84Total investment
securities and
FHLB stock
    
    $
    992
    
    
    
    3.82
    %
    
    $
    995
    
    
    
    3.78
    %
    
    $
    221
    
    
    
    6.33
    %
    
    $
    82,927
    
    
    
    4.90
    %
 
 (1)
    
    None of the listed equity securities has a stated maturity. 9




---



##### 



i.e.
    June 30,2006
    
    
    2005(In Thousands)Fixed rate:GNMA
    
    $
    524
    
    
    $
    671FHLMC
    
    
    7,604
    
    
    
    8,081FNMA
    
    
    69,194
    
    
    
    60,037Total fixed rate
    
    
    77,322
    
    
    
    68,789Adjustable rate:GNMA
    
    
    504
    
    
    
    833FNMA
    
    
    1,731
    
    
    
    2,069FHLMC
    
    
    834
    
    
    
    1,056Total adjustable-rate
    
    
    3,069
    
    
    
    3,958Total mortgage-backed securities
    
    $
    80,391
    
    
    $
    72,747
  10




---



##### 



Amounts at June 30, 2006 Which Mature InWeighted
    
    
    Over One
    
    
    Weighted
    
    
    
    
    
    
    WeightedOne Year
    
    
    Average
    
    
    through
    
    
    Average
    
    
    Over Five
    
    
    Averageor Less
    
    
    Yield
    
    
    Five Years
    
    
    Yield
    
    
    Years
    
    
    Yield(In Thousands)Fixed rate:GNMA
    
    $
    
    
    
    
    
    %
    
    $
    
    
    
    
    
    %
    
    $
    524
    
    
    
    7.43
    %FHLMC
    
    
    2
    
    
    
    6.93
    
    
    
    
    
    
    
    
    
    
    
    7,602
    
    
    
    4.64FNMA
    
    
    
    
    
    
    
    
    
    
    10
    
    
    
    7.14
    
    
    
    69,184
    
    
    
    4.96Total fixed-rate
    
    
    2
    
    
    
    6.93
    
    
    
    10
    
    
    
    7.14
    
    
    
    77,310
    
    
    
    4.95Adjustable rate:GNMA
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    504
    
    
    
    3.49FNMA
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,731
    
    
    
    4.63FHLMC
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    834
    
    
    
    4.29Total adjustable-rate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,069
    
    
    
    4.35Total
    
    $
    2
    
    
    
    6.93
    %
    
    $
    10
    
    
    
    7.14
    %
    
    $
    80,379
    
    
    
    4.93
    %
  At or For theYear Ended June 30,2006
    
    
    2005(Dollars in Thousands)Mortgage-backed securities at beginning
of period
    
    $
    72,203
    
    
    $
    66,072Purchases
    
    
    28,268
    
    
    
    15,849Repayments
    
    
    (12,205
    )
    
    
    (9,765
    )Sales
    
    
    (3,326
    )
    
    
    Amortizations of premiums and discounts, net
    
    
    79
    
    
    
    47Mortgage-backed securities at end of period
    
    $
    85,019
    
    
    $
    72,203Weighted average yield at end of period
    
    
    4.92
    %
    
    
    4.85
    %
 Sources of Funds
 General.
 Deposits.
   11




---



##### 



June 30,2006
    
    
    2005Amount
    
    
    %
    
    
    Amount
    
    
    %(Dollars in Thousands)Certificate accounts:0.00% - 0.99%
    
    $
    245
    
    
    
    .34
    %
    
    $
    250
    
    
    
    .36
    %1.00% - 1.99%
    
    
    411
    
    
    
    .58
    
    
    
    6,543
    
    
    
    9.352.00% - 2.99%
    
    
    9,911
    
    
    
    13.91
    
    
    
    20,564
    
    
    
    29.383.00% - 3.99%
    
    
    14,902
    
    
    
    20.91
    
    
    
    12,922
    
    
    
    18.464.00% - 4.99%
    
    
    28,230
    
    
    
    39.61
    
    
    
    10,493
    
    
    
    14.995.00% - 5.99%
    
    
    3,282
    
    
    
    4.60
    
    
    
    1,941
    
    
    
    2.776.00% - 6.99%
    
    
    
    
    
    
    
    
    
    
    1,796
    
    
    
    2.57Total certificate accounts
    
    
    56,981
    
    
    
    79.95
    
    
    
    54,509
    
    
    
    77.88Transaction accounts:Savings
    
    
    4,756
    
    
    
    6.67
    
    
    
    4,917
    
    
    
    7.02NOW
    
    
    6,240
    
    
    
    8.75
    
    
    
    6,825
    
    
    
    9.75Money market
    
    
    3,302
    
    
    
    4.63
    
    
    
    3,744
    
    
    
    5.35Total transaction accounts
    
    
    14,298
    
    
    
    20.05
    
    
    
    15,486
    
    
    
    22.12Total deposits
    
    $
    71,279
    
    
    
    100.00
    %
    
    $
    69,995
    
    
    
    100.00
    %
  Year Ended June 30,2006
    
    
    2005Average
    
    
    Interest
    
    
    Average
    
    
    Average
    
    
    Interest
    
    
    AverageBalance
    
    
    Expense
    
    
    Rate Paid
    
    
    Balance
    
    
    Expense
    
    
    Rate Paid(Dollars in Thousands)Savings
    
    $
    5,009
    
    
    $
    24
    
    
    
    .48
    %
    
    $
    5,368
    
    
    $
    27
    
    
    
    .50
    %NOW
    
    
    7,597
    
    
    
    16
    
    
    
    .21
    
    
    
    6,041
    
    
    
    13
    
    
    
    .22Money market
    
    
    3,516
    
    
    
    14
    
    
    
    .40
    
    
    
    4,129
    
    
    
    17
    
    
    
    .41Certificates of deposit
    
    
    56,269
    
    
    
    2,054
    
    
    
    3.65
    
    
    
    53,335
    
    
    
    1,710
    
    
    
    3.21Total deposits
    
    $
    72,391
    
    
    $
    2,108
    
    
    
    2.91
    %
    
    $
    68,873
    
    
    $
    1,767
    
    
    
    2.57
    %
  Year Ended June 30,2006
    
    
    2005(In Thousands)Total deposits at beginning of period
    
    $
    69,995
    
    
    $
    68,134Net deposits (withdrawals)
    
    
    71
    
    
    
    805Interest credited
    
    
    1,213
    
    
    
    1,056Total increase (decrease) in deposits
    
    $
    1,284
    
    
    $
    1,861
 12




---



##### 



Balance at June 30, 2006Maturing in the 12 Months Ending June 30,Certificates of Deposit
    
    2007
    
    
    2008
    
    
    2009
    
    
    Thereafter
    
    
    Total(In Thousands)Less than 2.00%
    
    $
    596
    
    
    $
    21
    
    
    $
    20
    
    
    $
    18
    
    
    $
    6552.00% - 2.99%
    
    
    9,049
    
    
    
    435
    
    
    
    428
    
    
    
    
    
    
    
    9,9123.00% - 3.99%
    
    
    7,522
    
    
    
    3,905
    
    
    
    2,347
    
    
    
    1,128
    
    
    
    14,9024.00% - 4.99%
    
    
    15,771
    
    
    
    2,818
    
    
    
    772
    
    
    
    8,869
    
    
    
    28,2305.00% - 5.99%
    
    
    1,451
    
    
    
    1,831
    
    
    
    
    
    
    
    
    
    
    
    3,282Total certificate accounts
    
    $
    34,389
    
    
    $
    9,010
    
    
    $
    3,567
    
    
    $
    10,015
    
    
    $
    56,981
  WeightedQuarter Ending:
    
    Amount
    
    
    Average Rate(Dollars in Thousands)September 30, 2006
    
    $
    608
    
    
    
    4.14
    %December 31, 2006
    
    
    906
    
    
    
    4.22March 31, 2007
    
    
    275
    
    
    
    4.40June 30, 2007
    
    
    1,060
    
    
    
    3.93After June 30, 2007
    
    
    3,042
    
    
    
    4.59Total certificates of deposit with
balances of $100,000 or more
    
    $
    5,891
    
    
    
    4.37
    %
 Borrowings.
   At or For the YearEnded June 30,2006
    
    2005(Dollars in Thousands)FHLB advances:Average balance outstanding
    
    $
    9,320
    
    
    $
    8,471Maximum amount outstanding at any month-end
during the period
    
    $
    13,665
    
    
    $
    9,541Balance outstanding at end of period
    
    $
    13,417
    
    
    $
    8,224Average interest rate during the period
    
    
    3.49
    %
    
    
    3.10
    %Weighted average interest rate at end of period
    
    
    4.34
    %
    
    
    3.24
    %
  13




---



##### 



REGULATION
  General
   Regulation of Home Federal Bancorp, Inc. and Home Federal Mutual Holding Company
 Holding Company Acquisitions
  Holding Company Activities.
 14




---



##### 



Waivers of Dividends by Home Federal Mutual Holding Company.
 Federal Securities Laws.
 The Sarbanes-Oxley Act
 
    
    the creation of an independent accounting oversight board;
    
    auditor independence provisions that restrict non-audit services that accountants
may provide to their audit clients;
    
    additional corporate governance and responsibility measures, including the
requirement that the chief executive officer and chief financial officer certify
financial statements;
    
    a requirement that companies establish and maintain a system of internal control
over financial reporting and that a companys management provide an annual report
regarding its assessment of the effectiveness of such internal control over financial
reporting to the companys independent accountants and that such accountants provide an
attestation report with respect to managements assessment of the effectiveness of the
companys internal control over financial reporting;
    
    the forfeiture of bonuses or other incentive-based compensation and profits from the
sale of an issuers securities by directors and senior officers in the twelve month
period following initial publication of any financial statements that later require
restatement;
    
    an increase in the oversight of, and enhancement of certain requirements relating to
audit committees of public companies and how they interact with the companys
independent auditors;
    
    the requirement that audit committee members must be independent and are absolutely
barred from accepting consulting, advisory or other compensatory fees from the issuer;
    
    the requirement that companies disclose whether at least one member of the committee
is a financial expert (as such term is defined by the Securities and Exchange
Commission) and if not, why not;
 15




---



##### 




    
    expanded disclosure requirements for corporate insiders, including accelerated
reporting of stock transactions by insiders and a prohibition on insider trading during
pension blackout periods;
    
    a prohibition on personal loans to directors and officers, except certain loans made
by insured financial institutions;
    
    disclosure of a code of ethics and the requirement of filing of a Form 8-K for a
change or waiver of such code;
    
    mandatory disclosure by analysts of potential conflicts of interest; and
    
    a range of enhanced penalties for fraud and other violations.
  Home Federal Savings and Loan Association
 General.
  Insurance of Accounts.
   16




---



##### 




    
    Merging the Savings Association Insurance Fund and Bank Insurance Fund, which became
effective March 31, 2006.
    
    Maintaining basic deposit and municipal account insurance coverage at $100,000 but
providing for a new basic insurance coverage for retirement accounts of $250,000.
Insurance coverage for basic deposit and retirement accounts could be increased for
inflation every five years in $10,000 increments beginning in 2011.
    
    Providing the FDIC with the ability to set the designated reserve ratio within a
range of between 1.15% and 1.50%, rather than maintaining 1.25% at all times regardless
of prevailing economic conditions.
    
    Providing a one-time assessment credit of $4.7 billion to banks and savings
associations in existence on December 31, 1996. The institutions qualifying for the
credit may use it to offset future premiums with certain limitations.
    
    Requiring the payment of dividends of 100% of the amount that the insurance fund
exceeds 1.5% of the estimated insured deposits and the payment of 50% of the amount
that the insurance fund exceeds 1.35% of the estimated insured deposits (when the
reserve is greater than 1.35% but no more than 1.5%).
 Regulatory Capital Requirements.
  
    
    tangible capital requirement  tangible capital equal to at least 1.5% of adjusted total assets;
    
    leverage capital requirement  core capital equal to at least 3.0% of adjusted total assets; and
    
    risk-based capital requirement  total capital (a combination of core and
supplementary capital) equal to at least 8.0% of risk-weighted assets.
 17




---



##### 



Prompt Corrective Action
 Total
    
    Tier 1
    
    Tier 1Capital Category
    
    Risk-Based Capital
    
    Risk-Based Capital
    
    Leverage 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%
    18




---



##### 



To Be WellRequired for
    
    Capitalized Under
    
    Excess OverCapital Adequacy
    
    Prompt Corrective
    
    Well-CapitalizedActual
    
    Purposes
    
    Action Provisions
    
    ProvisionsAmount
    
    Ratio
    
    Amount
    
    Ratio
    
    Amount
    
    Ratio
    
    Amount
    
    Ratio(Dollars in Thousands)Total risk-based capital
    
    $
    27,264
    
    
    
    87.78
    %
    
    $
    2,486
    
    
    
    8.00
    %
    
    $
    3,107
    
    
    
    10.00
    %
    
    $
    24,157
    
    
    
    88.60
    %Tier 1 risk-based capital
    
    
    27,029
    
    
    
    87.00
    
    
    
    1,726
    
    
    
    1.50
    
    
    
    1,864
    
    
    
    6.00
    
    
    
    25,165
    
    
    
    93.10Tier 1 leverage Capital
    
    
    27,029
    
    
    
    23.48
    
    
    
    3,453
    
    
    
    3.00
    
    
    
    5,755
    
    
    
    5.00
    
    
    
    21,274
    
    
    
    78.71
 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.
  
    
    Dispose of any investment or not engage in any activity unless the investment or
activity is allowed for both a national bank and a savings association.
  19




---



##### 



Affiliate Transaction Restrictions.
 Privacy Requirements of the Gramm-Leach-Bliley Act.
 Anti-Money Laundering.
 Federal Home Loan Bank System i.e.
   Federal Reserve System
 20




---



##### 



TAXATION
 Federal Taxation
 General
 Method of Accounting
 Bad Debt Reserves
 Taxable Distributions and Recapture
  Alternative Minimum Tax
 Net Operating Loss Carryovers.
 Corporate Dividends-Received Deduction
 21




---



##### 



State Taxation
      Item 2. Description of Property
 Properties
   Net BookValue
    
    Amount ofDescription/Address
    
    Leased/Owned
    
    of Property
    
    Deposits(In Thousands)Building
624 Market Street
Shreveport, LA
    
    Owned
    
    $
    158
    
    
    $
    29,917Building/ATM
6363 Youree Dr.
Shreveport, LA
    
    Owned (1)
    
    
    14
    
    
    
    29,858Building/ATM
8990 Mansfield Rd.
Shreveport, LA
    
    Owned
    
    
    181
    
    
    
    14,082Lot 2
River Crest, Unit #1
Bossier Parish, LA
    
    Owned
    
    
    436
    
    
    
    n/a
 
 (1)
    
    The building is owned by Home Federal Savings and Loan but the land is subject to an
operating lease which expires November 30, 2008. Item 3. Legal Proceedings
  Item 4. Submission of Matters to a Vote of Security Holders
  22




---



##### 



PART II
 Item 5. Market for Common Equity, Related Stockholder Matters and Small Business Issuer
Purchases of Equity Securities
 (a)
    
    The information required herein, to the extent applicable, is incorporated by reference
from page 41 of Home Federals 2006 Annual Report to Shareholders filed as Exhibit 13
hereto (2006 Annual Report).The information for all equity based and individual compensation arrangements is
incorporated by reference from Item 11 hereof.(b)
    
    Not applicable.(c)
    
    The following table represents the repurchasing activity of the stock repurchase
program during the fourth quarter of fiscal 2006:
 Total Number
    
    
    Maximumof Shares
    
    
    Number ofPurchased as
    
    
    Shares thatPart of
    
    
    May Yet BeTotal
    
    
    Average
    
    
    Publicly
    
    
    PurchasedNumber of
    
    
    Price
    
    
    Announced
    
    
    Under theshares
    
    
    Paid per
    
    
    Plans or
    
    
    Plans orPeriod
    
    Purchased
    
    
    Share
    
    
    Programs
    
    
    ProgramsMonth #1 April 1, 2006  April 30, 2006
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    141,658Month #2 May 1, 2006  May 31, 2006
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    141,658Month #3 June 1, 2006  June 30, 2006
    
    
    20,000
    
    
    
    10.175
    
    
    
    20,000
    
    
    
    121,658Total
    
    
    20,000
    
    
    $
    10.175
    
    
    
    20,000
    
    
    
    121,658
 Notes to this table:
 (a)
    
    On January 11, 2006, the Company issued a press release announcing that the Board of
Directors authorized a stock repurchase program (the program).
 (b)
    
    The Company was authorized to repurchase 10% or 142,358 of the outstanding shares other than
shares held by Home Federal Mutual Holding Company.
  Item 6. Managements Discussion and Analysis or Plan of Operation
  Item 7. Financial Statements
  23




---



##### 



Item 8. Changes in and Disagreements With Accountants on Accounting and Financial
Disclosure
  Item 8A. Controls and Procedures
  Item 8B. Other Information
  PART III
 Item 9. Directors, Executive Officers, Promoters and Control Persons; Compliance with Section
16(a) of the Exchange Act
  Code of Ethics.
 Item 10. Executive Compensation
  Item 11. Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
 Security Ownership of Certain Beneficial Owners and Management.
 Equity Compensation Plan Information.
 24




---



##### 



Weighted-
    
    
    Number of securitiesNumber of securities to be
    
    
    average exercise
    
    
    remaining available forissued upon exercise of
    
    
    price of
    
    
    future issuance underoutstanding options,
    
    
    outstanding
    
    
    equity 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
    
    
    244,145
    (1)
    
    $
    9.85
    (1)
    
    
    Equity compensation plans
not approved by security
holders
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    244,145
    
    
    $
    9.85
    
    
    
    
 
 (1)
    
    Includes 69,756 shares subject to restricted stock grants which were not vested as of June
30, 2006. The weighted-average exercise price excludes such restricted stock grants. Item 12. Certain Relationships and Related Transactions
  Item 13. Exhibits
         25




---



##### 



No.
    
    Exhibits
    
    Location3.1
    
    Federal Stock Charter of Home Federal Bancorp, Inc. of Louisiana
    
    
    (1
    )3.2
    
    Bylaws of Home Federal Bancorp, Inc. of Louisiana
    
    
    (1
    )4.0
    
    Stock Certificate of Home Federal Bancorp, Inc. of Louisiana
    
    
    (1
    )10.1
    
    Home Federal Bancorp, Inc. of Louisiana 2005 Stock Option Plan
    
    
    (2
    )10.2
    
    Home Federal Bancorp, Inc. of Louisiana 2005 Recognition and
Retention Plan and Trust Agreement
    
    
    (2
    )13.0
    
    Annual Report to Stockholders
    
    Filed Herewith23.0
    
    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 (File No. 333-119026).(2)
    
    Incorporated herein by reference from Home Federal Bancorps Definitive Schedule 14A filed
with the SEC on June 29, 2005 (File No. 000-51117). Item 14. Principal Accountant Fees and Services
  26




---



##### 



SIGNATURES
  HOME FEDERAL BANCORP, INC. OF LOUISIANADate: September 27, 2006By:
    
    /s/ Daniel R. HerndonDaniel R. HerndonChairman, President, and Chief Executive Officer
  Name
    
    Title
    
    Date/s/ Daniel R. HerndonDaniel R. Herndon
    
    Chairman of the Board,
President and Chief
Executive Officer
    
    September 27, 2006/s/ Walter T. Colquitt IIIWalter T. Colquitt III
    
    Director
    
    September 27, 2006David A. Herndon III
    
    Director
    
    September , 2006/s/ Scott D. LawrenceScott D. Lawrence
    
    Director
    
    September 27, 2006/s/ Sidney D. YorkSidney D. York
    
    Director
    
    September 27, 2006/s/ Clyde D. PattersonClyde D. Patterson
    
    Director and Executive Vice
President (Principal
Financial and Accounting
Officer)
    
    September 27, 2006/s/ Henry M. HearneHenry M. Hearne
    
    Director
    
    September 27, 2006Woodus K. Humphrey
    
    Director
    
    September , 2006Amos L. Wedgeworth Jr.
    
    Director
    
    September , 2006
 27