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| TABLE OF      CONTENTS |
|------------------------|

|                                                                                               | Page   |
|----------------------------------------------------------------------------------------------------|--------|
| President's Letter to Shareholders                                                                 | 1      |
|                                                                                               |   |
| Selected Consolidated Financial and Other    Data                                                  | 2      |
|                                                                                               |   |
| Management's      Discussion and Analysis of Financial Condition and Results      of Operations    | 4      |
|                                                                                               |   |
| Report of Independent Registered Public Accounting      Firm                                       | 12     |
|                                                                                               |   |
| Consolidated Balance Sheets                                                                        | 13     |
|                                                                                               |   |
| Consolidated Statements of Operations                                                              | 14     |
|                                                                                               |   |
| Consolidated Statements of Comprehensive    Income                                                 | 15     |
|                                                                                               |   |
| Consolidated Statements of Changes in Stockholders'      Equity                                    | 16     |
|                                                                                               |   |
| Consolidated Statements of Cash Flows                                                              | 17     |
|                                                                                               |   |
| Notes to Consolidated Financial Statements                                                         | 19     |
|                                                                                               |   |
| Market      Price of Home Federal Bancorp, Inc. Common Shares and Related Shareholder      Matters | 56     |
|                                                                                               |   |
| Directors and Executive Officers                                                                   | 57     |
|                                                                                               |   |
| Banking Locations                                                                                  | 57     |

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| PRESIDENT'S LETTER TOSHAREHOLDERS |
|-----------------------------------|

|  | ●  | Growing      and diversifying our loan portfolio by increasing our originations of      commercial real estate and businessloans; |
|--|---------------|-----------------------------------------------------------------------------------------------------------------------------------|

|  | ●   | Diversifying      our products and services; and |
|--|---------------------|--------------------------------------------------|

|  | ●  | Enhancing      core earnings. |
|--|---------------|-------------------------------|

----

|   |   | Daniel      R. Herndon                     |
|--------|--------|--------------------------------------------|
|        |        | President      and Chief Executive Officer |
|   |   |                                       |
|        |        |                                            |

----

| Home Federal Bancorp, Inc. of      Louisiana        |
|-----------------------------------------------------|
|                                                |
| SELECTED CONSOLIDATED FINANCIAL AND OTHER      DATA |

|                                                                                  |   | At      or For the Year Ended June 30, |    |
|---------------------------------------------------------------------------------------|--------|---------------------------------------------|---------|
| (Dollars      in Thousands, except per share data)                                    |   |                                        |    |   |   |   |
| Selected      Financial and Other Data:                                               |   | 2008                                        |    |   | 2007 |   |
| Total      assets                                                                     |   | $                                           | 137,715 |   |   | $ | 118,785 |   |
| Cash      and cash equivalents                                                        |   |                                        | 7,363   |   |   |   | 3,972 |   |
| Securities      available for sale                                                    |   |                                        | 96,324  |   |   |   | 83,752 |   |
| Securities      held to maturity                                                      |   |                                        | 1,688   |   |   |   | 1,408 |   |
| Loans      held-for-sale                                                              |   |                                        | 852     |   |   |   | 1,478 |   |
| Loans      receivable, net                                                            |   |                                        | 28,263  |   |   |   | 25,211 |   |
| Deposits                                                                              |   |                                        | 78,359  |   |   |   | 77,710 |   |
| FHLB      advances                                                                    |   |                                        | 26,876  |   |   |   | 12,368 |   |
| Total      Stockholders' Equity                                                       |   |                                        | 27,874  |   |   |   | 27,812 |   |
| Full      service offices                                                             |   |                                        | 3       |   |   |   | 3 |   |
|                                                                                  |   |                                        |    |   |   |   |   |   |
|                                                                                  |   |                                        |    |   |   |   |   |   |
| Selected      Operating Data:                                                         |   |                                        |    |   |   |   |   |   |
| Total      interest income                                                            |   | $                                           | 7,004   |   |   | $ | 6,590 |   |
| Total      interest expense                                                           |   |                                        | 3,968   |   |   |   | 3,448 |   |
| Net      interest income                                                              |   |                                        | 3,036   |   |   |   | 3,142 |   |
| Provision      for loan losses                                                        |   |                                        | --      |   |   |   | 1 |   |
| Net      interest income after provision for loan losses                              |   |                                        | 3,036   |   |   |   | 3,141 |   |
| Total      non-interest income                                                        |   |                                        | 198     |   |   |   | 240 |   |
| Total      non-interest expense                                                       |   |                                        | (3,359  | ) |   |   | (2,417 | ) |
| (Loss)      income before income taxes                                                |   |                                        | (125    | ) |   |   | 964 |   |
| Income      tax (benefit) expense                                                     |   |                                        | (43     | ) |   |   | 327 |   |
| Net      (loss) income                                                                |   | $                                           | (82     | ) |   | $ | 637 |   |
|                                                                                  |   |                                        |    |   |   |   |   |   |
| Selected Operating      Ratios(1):                                                    |   |                                        |    |   |   |   |   |   |
| Average      yield on interest-earning assets                                         |   |                                        | 5.39    | % |   |   | 5.69 | % |
| Average      rate on interest-bearing liabilities                                     |   |                                        | 4.00    |   |   |   | 3.84 |   |
| Average      interest rate spread(2)                                                  |   |                                        | 1.39    |   |   |   | 1.85 |   |
| Net      interest margin(2)                                                           |   |                                        | 2.33    |   |   |   | 2.71 |   |
| Average      interest-earning assets to average interest-bearing      liabilities     |   |                                        | 131.06  |   |   |   | 128.93 |   |
| Net      interest income after provision for loan losses to non-interest      expense |   |                                        | 90.38   |   |   |   | 129.95 |   |
| Total      non-interest expense to average assets                                     |   |                                        | 2.52    |   |   |   | 2.00 |   |
| Efficiency      ratio(3)                                                              |   |                                        | 103.87  |   |   |   | 71.49 |   |
| Return      on average assets                                                         |   |                                        | (.06    | ) |   |   | .53 |   |
| Return      on average equity                                                         |   |                                        | (2.48   | ) |   |   | 2.13 |   |
| Average      equity to average assets                                                 |   |                                        | 24.83   |   |   |   | 24.82 |   |
|                                                                                  |   |                                        |    |   |   |   |   |   |
| Asset Quality      Ratios(4):                                                         |   |                                        |    |   |   |   |   |   |
| Non-performing      loans as a percent of total loans receivable(5)                   |   |                                        | --      | % |   |   | .46 | % |
| Non-performing      assets as a percent of total assets(5)                            |   |                                        | .04     |   |   |   | .10 |   |
| Allowance      for loan losses as a percent of total loans receivable                 |   |                                        | .82     |   |   |   | .92 |   |
| Net      charge-offs to average loans receivable                                      |   |                                        | --      |   |   |   | -- |   |
|                                                                                  |   |                                        |    |   |   |   |   |   |
| Association Capital      Ratios(4):                                                   |   |                                        |    |   |   |   |   |   |
| Tangible      capital ratio                                                           |   |                                        | 20.21   | % |   |   | 22.79 | % |
| Core      capital ratio                                                               |   |                                        | 20.21   |   |   |   | 22.79 |   |
| Total      capital ratio                                                              |   |                                        | 73.08   |   |   |   | 80.63 |   |

| (1) | With      the exception of end of period ratios, all ratios are based on average      monthly balances during the indicatedperiods. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| (2) | 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-earningassets. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The      efficiency ratio represents the ratio of non-interest expense divided by      the sum of net interest income and non-interest  income. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Asset      quality ratios and capital ratios are end of period ratios, except for net      charge-offs to average loansreceivable. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Non-performing      assets consist of non-performing loans at June 30, 2008 and      2007.  Non-performing loans consist of non-accruing loans plus      accruing loans 90 days or more past due.  Home Federal Savings      and Loan did not have any real estate owned or troubled debt      restructurings at June 30, 2007.  Real estate owned at June 30,      2008 amounted to $52,000. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Home Federal Bancorp, Inc. of      Louisiana           |
|--------------------------------------------------------|
|                                                   |
| MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL |
| CONDITION AND RESULTS OF      OPERATIONS               |

----

| Home Federal Bancorp, Inc. of      Louisiana           |
|--------------------------------------------------------|
|                                                   |
| MANAGEMENT'S DISCUSSION AND      ANALYSIS OF FINANCIAL |
| CONDITION AND RESULTS OF      OPERATIONS               |

----

| Home Federal Bancorp, Inc. of      Louisiana      |
|--------------------------------------------------------|
| MANAGEMENT'S DISCUSSION AND      ANALYSIS OF FINANCIAL |
| CONDITION AND RESULTS OF      OPERATIONS               |

----

| Home Federal Bancorp, Inc. of      Louisiana           |
|--------------------------------------------------------|
|                                                   |
| MANAGEMENT'S DISCUSSION AND      ANALYSIS OF FINANCIAL |
| CONDITION AND RESULTS OF      OPERATIONS               |

|                                                                              |   |                            |   |   | Year      Ended June 30, |   |
|-----------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
|                                                                              |   |                            |   |   | 2008                          |   |   | 2007 |   |
|                                                                              |   | Yield/Rateat      June 30, 2008 |   |   | AverageBalance                |   |   | Interest |   |   | AverageYield/Rate |   |   | AverageBalance |   |   | Interest |   |   | AverageYield/Rate |   |
|                                                                              |   | (Dollars      in Thousands)     |   |
| Interest-earning      assets:                                                     |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities                                                        |   |                            | 4.96   | %      |                          | $      | 94,775 |   |   | $ | 4,780 |   |   |   | 5.04 | % |   | $ | 86,552 |   |   | $ | 4,550 |   |   |   | 5.26 | % |
| Loans      receivable                                                             |   |                            | 6.78   |   |                          |   | 28,698 |   |   |   | 2,072 |   |   |   | 7.22 |   |   |   | 23,680 |   |   |   | 1,739 |   |   |   | 7.34 |   |
| Interest-earning      deposits                                                    |   |                            | 2.22   |   |                          |   | 6,564 |   |   |   | 152 |   |   |   | 2.32 |   |   |   | 5,633 |   |   |   | 301 |   |   |   | 5.35 |   |
| Total      interest-earning assets                                                |   |                            | 5.26   | %      |                          |   | 130,037 |   |   |   | 7,004 |   |   |   | 5.39 |   |   |   | 115,865 |   |   |   | 6,590 |   |   |   | 5.69 | % |
| Non-interest-earning      assets                                                  |   |                            |   |   |                          |   | 3,367 |   |   |   |   |   |   |   |   |   |   |   | 4,875 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                 |   |                            |   |   |                          | $      | 133,404 |   |   |   |   |   |   |   |   |   |   | $ | 120,740 |   |   |   |   |   |   |   |   |   |
|                                                                              |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings      accounts                                                             |   |                            | .50    | %      |                          |   | 4,546 |   |   |   | 22 |   |   |   | .49 | % |   | $ | 4,630 |   |   |   | 23 |   |   |   | .49 | % |
| NOW      accounts                                                                 |   |                            | .17    |   |                          |   | 7,176 |   |   |   | 16 |   |   |   | .22 |   |   |   | 6,983 |   |   |   | 15 |   |   |   | .21 |   |
| Money      market accounts                                                        |   |                            | .40    |   |                          |   | 2,999 |   |   |   | 12 |   |   |   | .40 |   |   |   | 3,030 |   |   |   | 12 |   |   |   | .40 |   |
| Certificate      accounts                                                         |   |                            | 4.33   |   |                          |   | 63,893 |   |   |   | 2,985 |   |   |   | 4.67 |   |   |   | 60,344 |   |   |   | 2,710 |   |   |   | 4.49 |   |
| Total      deposits                                                               |   |                            | 3.42   |   |                          |   | 78,614 |   |   |   | 3,035 |   |   |   | 3.86 |   |   |   | 74,987 |   |   |   | 2,760 |   |   |   | 3.68 |   |
| FHLB      advances                                                                |   |                            | 4.27   |   |                          |   | 20,602 |   |   |   | 933 |   |   |   | 4.53 |   |   |   | 14,883 |   |   |   | 688 |   |   |   | 4.63 |   |
| Total      interest-bearing liabilities                                           |   |                            | 3.63   | %      |                          |   | 99,216 |   |   |   | 3,968 |   |   |   | 4.00 | % |   |   | 89,870 |   |   | $ | 3,448 |   |   |   |  3.84 | % |
| Non-interest-bearing      liabilities                                             |   |                            |   |   |                          |   | 1,058 |   |   |   |   |   |   |   |   |   |   |   | 899 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                            |   |                            |   |   |                          |   | 100,274 |   |   |   |   |   |   |   |   |   |   |   | 90,769 |   |   |   |   |   |   |   |   |   |
| Total      Stockholders' Equity(1)                                                |   |                            |   |   |                          |   | 33,130 |   |   |   |   |   |   |   |   |   |   |   | 29,971 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and equity                                                 |   |                            |   |   |                          | $      | 133,404 |   |   |   |   |   |   |   |   |   |   | $ | 120,740 |   |   |   |   |   |   |   |   |   |
| Net      interest-earning assets                                                  |   |                            |   |   |                          | $      | 30,821 |   |   |   |   |   |   |   |   |   |   | $ | 25,995 |   |   |   |   |   |   |   |   |   |
| Net      interest income; average interest  ratespread(2)               |   |                            |   |   |                          |   |   |   |   | $ | 3,036 |   |   |   | 1.39 | % |   |   |   |   |   | $ | 3,142 |   |   |   | 1.85 | % |
| Net      interest margin(3)                                                       |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   | 2.33 | % |   |   |   |   |   |   |   |   |   |   | 2.71 | % |
| Average      interest-earning assets to average interest-bearing      liabilities |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   | 131.06 | % |   |   |   |   |   |   |   |   |   |   | 128.93 | % |

| (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. |
|-----|------------------------------------------------------------------------------------------------------|

----

| Home Federal Bancorp, Inc. of      Louisiana           |
|--------------------------------------------------------|
|                                                   |
| MANAGEMENT'S DISCUSSION AND      ANALYSIS OF FINANCIAL |
| CONDITION AND RESULTS OF      OPERATIONS               |

|                                            |   | 2008      vs. 2007                  |   |   | 2007      vs. 2006  |   |
|-------------------------------------------------|--------|-------------------------------------|--------|--------|---------------------|--------|
|                                            |   | Increase      (Decrease)Due      to |   |   | Total      Increase |   |   | Increase      (Decrease)Due      to |   |   | Total      Increase |   |
|                                            |   | Rate                                |   |   | Volume              |   |   | (Decrease) |   |   | Rate |   |   | Volume |   |   | (Decrease) |   |
|                                            |   | (In      Thousands)                 |   |
| Interest      income:                           |   |                                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities                      |   | $                                   | (203   | )      |                | $      | 433 |   |   | $ | 230 |   |   | $ | 220 |   |   | $ | 291 |   |   | $ | 511 |   |
| Loans      receivable, net                      |   |                                | (35    | )      |                |   | 368 |   |   |   | 333 |   |   |   | 69 |   |   |   | 250 |   |   |   | 319 |   |
| Interest-earning      deposits                  |   |                                | (199   | )      |                |   | 50 |   |   |   | (149 | ) |   |   | 67 |   |   |   | 29 |   |   |   | 96 |   |
| Total      interest-earning assets              |   |                                | (437   | )      |                |   | 851 |   |   |   | 414 |   |   |   | 356 |   |   |   | 570 |   |   |   | 926 |   |
| Interest      expense:                          |   |                                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings      accounts                           |   |                                | -      |   |                |   | (1 | ) |   |   | (1 | ) |   |   | 1 |   |   |   | (2 | ) |   |   | (1 | ) |
| NOW      accounts                               |   |                                | 1      |   |                |   | - |   |   |   | 1 |   |   |   | -- |   |   |   | (1 | ) |   |   | (1 | ) |
| Money      market accounts                      |   |                                | -      |   |                |   | - |   |   |   | - |   |   |   | -- |   |   |   | (2 | ) |   |   | (2 | ) |
| Certificate      accounts                       |   |                                | 115    |   |                |   | 160 |   |   |   | 275 |   |   |   | 507 |   |   |   | 149 |   |   |   | 656 |   |
| Total      deposits                             |   |                                | 116    |   |                |   | 159 |   |   |   | 275 |   |   |   | 508 |   |   |   | 144 |   |   |   | 652 |   |
| FHLB      advances                              |   |                                | (20    | )      |                |   | 265 |   |   |   | 245 |   |   |   | 169 |   |   |   | 194 |   |   |   | 363 |   |
| Total      interest-bearing liabilities         |   |                                | 96     |   |                |   | 424 |   |   |   | 520 |   |   |   | 677 |   |   |   | 338 |   |   |   | 1,015 |   |
| (Decrease)      Increase in net interest income |   | $                                   | (533   | )      |                | $      | 427 |   |   | $ | (106 | ) |   | $ | (321 | ) |   | $ | 232 |   |   | $ | (89 | ) |

----

| Home Federal Bancorp, Inc. of      Louisiana           |
|--------------------------------------------------------|
|                                                   |
| MANAGEMENT'S DISCUSSION AND      ANALYSIS OF FINANCIAL |
| CONDITION AND RESULTS OF      OPERATIONS               |

----

| Home Federal Bancorp, Inc. of      Louisiana           |
|--------------------------------------------------------|
|                                                   |
| MANAGEMENT'S DISCUSSION AND      ANALYSIS OF FINANCIAL |
| CONDITION AND RESULTS OF      OPERATIONS               |

| Change      inInterest      RatesIn      Basis Points |   |   | Net      Portfolio Value    |   |   | NPV      as % of PortfolioValue      of Assets |   |
|-------------------------------------------------------|--------|--------|-----------------------------|--------|--------|------------------------------------------------|--------|
| (Rate      Shock)                                     |   |   | Amount                      |   |   | $      Change                                  |   |   | %      Change |   |   | NPV      Ratio |   |   | Change |   |
|                                                  |   |   | (Dollars      in Thousands) |   |
| 300                                                   |   |   | $                           | 17,024 |   |                                           | $      | (10,297 | ) |   |   | (37.69 | )% |   |   | 13.69 | % |   |   | (5.85 | )% |
| 200                                                   |   |   |                        | 20,517 |   |                                           |   | (6,803 | ) |   |   | (24.90 | ) |   |   | 15.84 |   |   |   | (3.69 | ) |
| 100                                                   |   |   |                        | 23,925 |   |                                           |   | (3,396 | ) |   |   | (12.43 | ) |   |   | 17.77 |   |   |   | (1.76 | ) |
| Static                                                |   |   |                        | 27,321 |   |                                           |   | -- |   |   |   | -- |   |   |   | 19.53 |   |   |   | -- |   |
| (50)                                                  |   |   |                        | 28,963 |   |                                           |   | 1,642 |   |   |   | 6.01 |   |   |   | 20.33 |   |   |   | .80 |   |
| (100)                                                 |   |   |                        | 30,497 |   |                                           |   | 3,177 |   |   |   | 11.63 |   |   |   | 21.03 |   |   |   | 1.50 |   |

----

| Home Federal      Bancorp, Inc. of Louisiana           |
|--------------------------------------------------------|
|                                                   |
| MANAGEMENT'S DISCUSSION AND      ANALYSIS OF FINANCIAL |
| CONDITION AND RESULTS OF      OPERATIONS               |

----

Report 

----

HOME 

|                                                                                                                                                                                               |   | 2008                |    |   | 2007   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|--------|--------|
|                                                                                                                                                                                               |   | (In      Thousands) |    |
| Assets                                                                                                                                                                                             |   |                |    |   |   |   |
| Cash      and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks      of $4,957 and $3,025 for 2008 and 2007, Respectively)                                                     |   | $                   | 7,363   |   |   | $      | 3,972 |   |
| Securities      Available-for-Sale                                                                                                                                                                 |   |                | 96,324  |   |   |   | 83,752 |   |
| Securities      Held-to-Maturity                                                                                                                                                                   |   |                | 1,688   |   |   |   | 1,408 |   |
| Loans      Held-for-Sale                                                                                                                                                                           |   |                | 852     |   |   |   | 1,478 |   |
| Loans      Receivable, Net                                                                                                                                                                         |   |                | 28,263  |   |   |   | 25,211 |   |
| Accrued      Interest Receivable                                                                                                                                                                   |   |                | 550     |   |   |   | 499 |   |
| Premises      and Equipment, Net                                                                                                                                                                   |   |                | 880     |   |   |   | 923 |   |
| Deferred      Tax Asset                                                                                                                                                                            |   |                | 1,691   |   |   |   | 1,476 |   |
| Foreclosed      Real Estate                                                                                                                                                                        |   |                | 52      |   |   |   | - |   |
| Other      Assets                                                                                                                                                                                  |   |                | 52      |   |   |   | 66 |   |
|                                                                                                                                                                                               |   |                |    |   |   |   |   |   |
| Total      Assets                                                                                                                                                                                  |   | $                   | 137,715 |   |   | $      | 118,785 |   |
|                                                                                                                                                                                               |   |                |    |   |   |   |   |   |
|                                                                                                                                                                                               |   |                |    |   |   |   |   |   |
| Liabilities      and Stockholders' Equity                                                                                                                                                          |   |
|                                                                                                                                                                                               |   |                |    |   |   |   |   |   |
| Liabilities                                                                                                                                                                                        |   |                |    |   |   |   |   |   |
| Deposits                                                                                                                                                                                           |   | $                   | 78,359  |   |   | $      | 77,710 |   |
| Advances      from Borrowers for Taxes and Insurance                                                                                                                                               |   |                | 177     |   |   |   | 196 |   |
| Advances      from Federal Home Loan Bank of Dallas                                                                                                                                                |   |                | 26,876  |   |   |   | 12,368 |   |
| Stock      Purchase Deposit Escrow                                                                                                                                                                 |   |                | 3,575   |   |   |   | - |   |
| Other      Accrued Expenses and Liabilities                                                                                                                                                        |   |                | 854     |   |   |   | 699 |   |
|                                                                                                                                                                                               |   |                |    |   |   |   |   |   |
|                                                                                                                                                                                               |   |                | 109,841 |   |   |   | 90,973 |   |
| Total      Liabilities                                                                                                                                                                             |   |                |    |   |   |   |   |   |
|                                                                                                                                                                                               |   |                |    |   |   |   |   |   |
| Equity                                                                                                                                                                                             |   |                |    |   |   |   |   |   |
| Preferred      Stock - No Par Value; 2,000,000 Shares Authorized;None Issued and      Outstanding                                                                                                  |   |                | -       |   |   |   | - |   |
| Common      Stock - $.01 Par Value; 8,000,000 Shares Authorized;3,558,958 Shares      Issued; 3,383,287 Shares Outstanding at June 30, 2008 and 3,387,202 Shares      Outstanding at June 30, 2007 |   |                | 14      |   |   |   | 14 |   |
| Additional      Paid-In Capital                                                                                                                                                                    |   |                | 13,567  |   |   |   | 13,509 |   |
| Treasury      Stock, at Cost - 175,671 Shares at June 30, 2008;  171,756      Shares at June 30, 2007                                                                                    |   |                | (1,809  | )      |   |   | (1,771 | ) |
| Unearned      ESOP Stock                                                                                                                                                                           |   |                | (940    | )      |   |   | (997 | ) |
| Unearned      RRP Trust Stock                                                                                                                                                                      |   |                | (395    | )      |   |   | (551 | ) |
| Retained      Earnings                                                                                                                                                                             |   |                | 20,071  |   |   |   | 20,449 |   |
| Accumulated      Other Comprehensive Loss                                                                                                                                                          |   |                | (2,634  | )      |   |   | (2,841 | ) |
|                                                                                                                                                                                               |   |                |    |   |   |   |   |   |
| Total      Stockholders' Equity                                                                                                                                                                    |   |                | 27,874  |   |   |   | 27,812 |   |
|                                                                                                                                                                                               |   |                |    |   |   |   |   |   |
| Total      Liabilities and Stockholders' Equity                                                                                                                                                    |   | $                   | 137,715 |   |   | $      | 118,785 |   |
|                                                                                                                                                                                               |   |                |    |   |   |   |   |   |

----

HOME 

|                                                          |   | 2008                                       |   |   | 2007   |   |
|---------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------|--------|
|                                                          |   | (In      Thousands, Except Per Share Data) |   |
| Interest      Income                                          |   |                                       |   |   |   |   |
| Loans,      Including Fees                                    |   | $                                          | 2,072  |   |   | $      | 1,739 |   |
| Investment      Securities                                    |   |                                       | 243    |   |   |   | 285 |   |
| Mortgage-Backed      Securities                               |   |                                       | 4,537  |   |   |   | 4,265 |   |
| Other      Interest-Earning Assets                            |   |                                       | 152    |   |   |   | 301 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Total      Interest Income                                    |   |                                       | 7,004  |   |   |   | 6,590 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Interest      Expense                                         |   |                                       |   |   |   |   |   |   |
| Deposits                                                      |   |                                       | 3,035  |   |   |   | 2,760 |   |
| Federal      Home Loan Bank Borrowings                        |   |                                       | 933    |   |   |   | 688 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Total      Interest Expense                                   |   |                                       | 3,968  |   |   |   | 3,448 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Net      Interest Income                                      |   |                                       | 3,036  |   |   |   | 3,142 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Provision      for Loan Losses                                |   |                                       | -      |   |   |   | 1 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Net      Interest Income after Provision for      Loan Losses |   |                                       | 3,036  |   |   |   | 3,141 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Non-Interest      Income                                      |   |                                       |   |   |   |   |   |   |
| Gain      on Sale of Loans                                    |   |                                       | 6      |   |   |   | 3 |   |
| Gain      on Sale of Securities                               |   |                                       | 149    |   |   |   | 168 |   |
| Other      Income                                             |   |                                       | 43     |   |   |   | 69 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Total      Non-Interest Income                                |   |                                       | 198    |   |   |   | 240 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Non-Interest      Expense                                     |   |                                       |   |   |   |   |   |   |
| Compensation      and Benefits                                |   |                                       | 1,572  |   |   |   | 1,487 |   |
| Occupancy      and Equipment                                  |   |                                       | 168    |   |   |   | 178 |   |
| Data      Processing                                          |   |                                       | 69     |   |   |   | 73 |   |
| Audit      and Examination Fees                               |   |                                       | 121    |   |   |   | 142 |   |
| Merger      and Stock Issuance Costs                          |   |                                       | 883    |   |   |   | - |   |
| Deposit      Insurance Premiums                               |   |                                       | 9      |   |   |   | 9 |   |
| Legal      Fees                                               |   |                                       | 74     |   |   |   | 66 |   |
| Franchise      and Bank Shares Tax                            |   |                                       | 141    |   |   |   | 158 |   |
| Other      Expense                                            |   |                                       | 322    |   |   |   | 304 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Total      Non-Interest Expense                               |   |                                       | 3,359  |   |   |   | 2,417 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| (Loss)      Income Before Income Taxes                        |   |                                       | (125   | )      |   |   | 964 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Provision      for Income Tax (Benefit) Expense               |   |                                       | (43    | )      |   |   | 327 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| Net      (Loss) Income                                        |   | $                                          | (82    | )      |   | $      | 637 |   |
|                                                          |   |                                       |   |   |   |   |   |   |
| (Loss)      Earnings Per Share                                |   |                                       |   |   |   |   |   |   |
| Basic                                                         |   | $                                          | (0.03  | )      |   | $      | 0.19 |   |
| Diluted                                                       |   | $                                          | (0.03  | )      |   | $      | 0.19 |   |
|                                                          |   |                                       |   |   |   |   |   |   |

----

HOME 

|                                                              |   | 2008                |   |   | 2007   |   |
|-------------------------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                                              |   | (In      Thousands) |   |
|                                                              |   |                |   |   |   |   |
| Net      (Loss) Income                                            |   | $                   | (82    | )      |   | $      | 637 |   |
|                                                              |   |                |   |   |   |   |   |   |
| Other      Comprehensive Income, Net of Tax                       |   |                |   |   |   |   |   |   |
| Unrealized      Holding Gains Arising During the Period           |   |                | 425    |   |   |   | 496 |   |
| Reclassification      Adjustment for Gains Included in Net Income |   |                | (218   | )      |   |   | (221 | ) |
|                                                              |   |                |   |   |   |   |   |   |
| Total      Other Comprehensive Income                             |   |                | 207    |   |   |   | 275 |   |
|                                                              |   |                |   |   |   |   |   |   |
| Total      Comprehensive Income                                   |   | $                   | 125    |   |   | $      | 912 |   |
|                                                              |   |                |   |   |   |   |   |   |

----

HOME 

|                                                                        |   | Common      Stock |   |   | Additional      Paid-in Capital |   |   | Unearned      ESOP Stock |   |   | Retained      Earnings |   |   | Accumulated      Other Comprehensive Loss |   |   | Unearned      RRP Trust Stock |   |   | Treasury      Stock |   |   | Total      Stockholders'Equity |   |
|-----------------------------------------------------------------------------|--------|-------------------|--------|--------|---------------------------------|--------|--------|--------------------------|--------|--------|------------------------|--------|--------|-------------------------------------------|--------|--------|-------------------------------|--------|--------|---------------------|--------|--------|--------------------------------|--------|
|                                                                        |   |              |   |   |                            |   |   | (In      Thousands)      |   |   |                   |   |   |                                      |   |   |                          |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |
| Balance      - July 1, 2006                                                 |   | $                 | 14     |   |                            | $      | 13,445 |                     |   | $      | (1,054                 | )      |   | $                                         | 20,149 |   |                          | $      | (3,116 | )                   |   | $      | (688                           | )      |   | $ | (211 | ) |   | $ | 28,539 |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| ESOP      Compensation Earned                                               |   |              | -      |   |                            |   | 2      |                     |   |   | 57                     |   |   |                                      | -      |   |                          |   | -      |                |   |   | -                              |   |   |   | - |   |   |   | 59 |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Distribution      of RRP Trust Stock                                        |   |              | -      |   |                            |   | -      |                     |   |   | -                      |   |   |                                      | -      |   |                          |   | -      |                |   |   | 137                            |   |   |   | - |   |   |   | 137 |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Dividends      Paid                                                         |   |              | -      |   |                            |   | -      |                     |   |   | -                      |   |   |                                      | (337   | )      |                          |   | -      |                |   |   | -                              |   |   |   | - |   |   |   | (337 | ) |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Stock      Options Vested                                                   |   |              | -      |   |                            |   | 62     |                     |   |   | -                      |   |   |                                      | -      |   |                          |   | -      |                |   |   | -                              |   |   |   | - |   |   |   | 62 |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Acquisition      of Treasury Stock                                          |   |              | -      |   |                            |   | -      |                     |   |   | -                      |   |   |                                      | -      |   |                          |   | -      |                |   |   | -                              |   |   |   | (1,560 | ) |   |   | (1,560 | ) |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Net      Income                                                             |   |              | -      |   |                            |   | -      |                     |   |   | -                      |   |   |                                      | 637    |   |                          |   | -      |                |   |   | -                              |   |   |   | - |   |   |   | 637 |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Other      Comprehensive Income, Net of Applicable Deferred Income    Taxes |   |              | -      |   |                            |   | -      |                     |   |   | -                      |   |   |                                      | -      |   |                          |   | 275    |                |   |   | -                              |   |   |   | - |   |   |   | 275 |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Balance      - June 30, 2007                                                |   |              | 14     |   |                            |   | 13,509 |                     |   |   | (997                   | )      |   |                                      | 20,449 |   |                          |   | (2,841 | )                   |   |   | (551                           | )      |   |   | (1,771 | ) |   |   | 27,812 |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| ESOP      Compensation Earned                                               |   |              | -      |   |                            |   | (4     | )                        |   |   | 57                     |   |   |                                      | -      |   |                          |   | -      |                |   |   | -                              |   |   |   | - |   |   |   | 53 |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Distribution      of RRP Trust Stock                                        |   |              | -      |   |                            |   | -      |                     |   |   | -                      |   |   |                                      | -      |   |                          |   | -      |                |   |   | 156                            |   |   |   | - |   |   |   | 156 |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Dividends      Paid                                                         |   |              | -      |   |                            |   | -      |                     |   |   | -                      |   |   |                                      | (296   | )      |                          |   | -      |                |   |   | -                              |   |   |   | - |   |   |   | (296 | ) |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Stock      Options Vested                                                   |   |              | -      |   |                            |   | 62     |                     |   |   | -                      |   |   |                                      | -      |   |                          |   | -      |                |   |   | -                              |   |   |   | - |   |   |   | 62 |   |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Acquisition      of Treasury Stock                                          |   |              | -      |   |                            |   | -      |                     |   |   | -                      |   |   |                                      | -      |   |                          |   | -      |                |   |   | -                              |   |   |   | (38 | ) |   |   | (38 | ) |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Net      Loss                                                               |   |              | -      |   |                            |   | -      |                     |   |   | -                      |   |   |                                      | (82    | )      |                          |   | -      |                |   |   | -                              |   |   |   | - |   |   |   | (82 | ) |
|                                                                        |   |              |   |   |                            |   |   |                     |   |   |                   |   |   |                                      |   |   |                          |   |   |                |   |   |                           |   |   |   |   |   |   |   |   |   |
| Other      Comprehensive Income, Net of Applicable Deferred Income    Taxes |   |              | -      |   |                            |   | -      |                     |   |   | -                      |   |   |                                      | -      |   |                          |   | 207    |                |   |   | -                              |   |   |   | - |   |   |   | 207 |   |
| Balance      - June 30, 2008                                                |   | $                 | 14     |   |                            | $      | 13,567 |                     |   | $      | (940                   | )      |   | $                                         | 20,071 |   |                          | $      | (2,634 | )                   |   | $      | (395                           | )      |   | $ | (1,809 | ) |   | $ | 27,874 |   |

----

HOME 

|                                                                                                        |   | 2008                |    |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|--------|--------|
|                                                                                                        |   | (In      Thousands) |    |
| Cash      Flows from Operating Activities                                                                   |   |                |    |   |   |   |
| Net      (Loss) Income                                                                                      |   | $                   | (82     | )      |   | $      | 637 |   |
| Adjustments      to Reconcile Net (Loss) Income to Net Cash Provided by (Used in) Operating      Activities |   |                |    |   |   |   |   |   |
| Net      Amortization and Accretion on Securities                                                           |   |                | (182    | )      |   |   | (168 | ) |
| Amortization      of Deferred Loan Fees                                                                     |   |                | (20     | )      |   |   | (17 | ) |
| Provision      for Loan Losses                                                                              |   |                | -       |   |   |   | 1 |   |
| Depreciation      of Premises and Equipment                                                                 |   |                | 55      |   |   |   | 61 |   |
| Gain      on Sale of Securities                                                                             |   |                | (149    | )      |   |   | (168 | ) |
| ESOP      Compensation Expense                                                                              |   |                | 53      |   |   |   | 59 |   |
| Deferred      Income Tax (Benefit)                                                                          |   |                | (321    | )      |   |   | (21 | ) |
| Stock      Option Expense                                                                                   |   |                | 62      |   |   |   | 62 |   |
| Recognition      and Retention Plan Expense                                                                 |   |                | 150     |   |   |   | 134 |   |
| Changes      in Assets and Liabilities                                                                      |   |                |    |   |   |   |   |   |
| Origination      and Purchase of Loans Held-for-Sale                                                        |   |                | (12,985 | )      |   |   | (13,835 | ) |
| Sale      and Principal Repayments of Loans Held-for-Sale                                                   |   |                | 13,611  |   |   |   | 12,356 |   |
| Accrued      Interest Receivable                                                                            |   |                | (51     | )      |   |   | (34 | ) |
| Other      Operating Assets                                                                                 |   |                | 14      |   |   |   | 11 |   |
| Other      Operating Liabilities                                                                            |   |                | 158     |   |   |   | 156 |   |
|                                                                                                        |   |                |    |   |   |   |   |   |
| Net      Cash Provided by (Used in) Operating Activities                                                    |   |                | 313     |   |   |   | (766 | ) |
|                                                                                                        |   |                |    |   |   |   |   |   |
| Cash      Flows from Investing Activities                                                                   |   |                |    |   |   |   |   |   |
| Loan      Originations and Principal Collections, Net                                                       |   |                | 330     |   |   |   | 1,459 |   |
| Purchases      of Loans                                                                                     |   |                | (3,455  | )      |   |   | (5,797 | ) |
| Deferred      Loan Fees Collected                                                                           |   |                | 42      |   |   |   | 10 |   |
| Acquisition      of Premises and Equipment                                                                  |   |                | (12     | )      |   |   | (37 | ) |
| Activity      in Available-for-Sale Securities                                                              |   |                |    |   |   |   |   |   |
| Proceeds      from Sales of Securities                                                                      |   |                | 15,507  |   |   |   | 19,086 |   |
| Proceeds      from Maturity of Securities                                                                   |   |                | -       |   |   |   | 2,000 |   |
| Principal      Payments on Mortgage-Backed Securities                                                       |   |                | 11,582  |   |   |   | 10,977 |   |
| Purchases                                                                                                   |   |                | (39,017 | )      |   |   | (31,378 | ) |
| Activity      in Held-to-Maturity Securities                                                                |   |                |    |   |   |   |   |   |
| Principal      Payments on Mortgage-Backed Securities                                                       |   |                | 138     |   |   |   | 155 |   |
| Purchases                                                                                                   |   |                | (416    | )      |   |   | (130 | ) |
|                                                                                                        |   |                |    |   |   |   |   |   |
| Net      Cash Used in Investing Activities                                                                  |   |                | (15,301 | )      |   |   | (3,655 | ) |

----

|                                                                               |   | 2008                |   |   | 2007   |   |
|------------------------------------------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                                                               |   | (In      Thousands) |   |
| Cash      Flows from Financing Activities                                          |   |                |   |   |   |   |
| Net      Increase in Deposits                                                      |   |                | 650    |   |   |   | 6,431 |   |
| Proceeds      from Advances from Federal Home Loan Bank                            |   |                | 18,700 |   |   |   | 7,250 |   |
| Repayment      of Advances from Federal Home Loan Bank                             |   |                | (4,192 | )      |   |   | (8,299 | ) |
| Dividends      Paid                                                                |   |                | (296   | )      |   |   | (337 | ) |
| Acquisition      of Treasury Stock                                                 |   |                | (38    | )      |   |   | (1,560 | ) |
| Net      Decrease in Advances from Borrowers for Taxes andInsurance                |   |                | (20    | )      |   |   | (22 | ) |
| Stock      Purchase Deposit Escrow                                                 |   |                | 3,575  |   |   |   | - |   |
|                                                                               |   |                |   |   |   |   |   |   |
| Net      Cash Provided by Financing Activities                                     |   |                | 18,379 |   |   |   | 3,463 |   |
|                                                                               |   |                |   |   |   |   |   |   |
| Net      Increase (Decrease) in Cash and Cash Equivalents                          |   |                | 3,391  |   |   |   | (958 | ) |
|                                                                               |   |                |   |   |   |   |   |   |
| Cash      and Cash Equivalents, Beginning of Year                                  |   |                | 3,972  |   |   |   | 4,930 |   |
|                                                                               |   |                |   |   |   |   |   |   |
| Cash      and Cash Equivalents, End of Year                                        |   | $                   | 7,363  |   |   | $      | 3,972 |   |
|                                                                               |   |                |   |   |   |   |   |   |
| Supplemental      Cash Flow Information                                            |   |                |   |   |   |   |   |   |
| Interest      Paid on Deposits and Borrowed Funds                                  |   | $                   | 3,930  |   |   | $      | 3,439 |   |
| Income      Taxes Paid                                                             |   |                | 252    |   |   |   | 352 |   |
| Market      Value Adjustment for Gain (Loss) on Securities      Available-for-Sale |   |                | 314    |   |   |   | 417 |   |
|                                                                               |   |                |   |   |   |   |   |   |
| Non-Cash      Investing Activity                                                   |   |                |   |   |   |   |   |   |
| Loans      Transferred to Foreclosed Real Estate During the Year                   |   |                | 52     |   |   |   | - |   |

----

| HOME FEDERAL      BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      1. | Summary      of Significant Accounting Policies |
|--------------|-------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      1. |     Summary      of Significant Accounting Policies(Continued) |
|--------------|------------------------------------------------------------------------------------|

|                                       |   | 2008   |   |   | 2007   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|
| (In      Thousands)                        |   |   |   |   |   |   |
| Cash      on Hand                          |   | $      | 314    |   |   | $      | 198 |   |
| Demand      Deposits at Other Institutions |   |   | 4,214  |   |   |   | 770 |   |
| Federal      Funds Sold                    |   |   | 2,835  |   |   |   | 3,004 |   |
|                                       |   |   |   |   |   |   |   |   |
| Total                                      |   | $      | 7,363  |   |   | $      | 3,972 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      1. |     Summary      of Significant Accounting Policies(Continued) |
|--------------|------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      1. |     Summary      of Significant Accounting Policies(Continued) |
|--------------|------------------------------------------------------------------------------------|

| Buildings      and Improvements | 10      - 40 Years |
|---------------------------------|--------------------|
| Furniture      and Equipment    | 3 -      10 Years  |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      1. |     Summary      of Significant Accounting Policies(Continued) |
|--------------|------------------------------------------------------------------------------------|

|                                                                     |   | 2008   |   |   | 2007   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| (In      Thousands)                                                      |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |
| Unrealized      Holding Gains on Available-for-Sale Securities           |   | $      | 644    |   |   | $      | 751 |   |
| Reclassification      Adjustment for Gains  Realized in Income |   |   | (330)  |   |   |   | (334 | ) |
|                                                                     |   |   |   |   |   |   |   |   |
| Net      Unrealized Gains                                                |   |   | 314    |   |   |   | 417 |   |
| Tax      Effect                                                          |   |   | (107)  |   |   |   | (142 | ) |
|                                                                     |   |   |   |   |   |   |   |   |
| Net-of-Tax      Amount                                                   |   | $      | 207    |   |   | $      | 275 |   |

|                                                      |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| (In      Thousands)                                       |   |   |   |   |   |   |
| Net      Unrealized Loss on Securities Available-for-Sale |   | $      | (3,991 | )      |   | $      | (4,305 | ) |
| Tax      Effect                                           |   |   | 1,357  |   |   |   | 1,464 |   |
|                                                      |   |   |   |   |   |   |   |   |
| Net-of-Tax      Amount                                    |   | $      | (2,634 | )      |   | $      | (2,841 | ) |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      1. |     Summary      of Significant Accounting Policies(Continued) |
|--------------|------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      1. |     Summary      of Significant Accounting Policies(Continued) |
|--------------|------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      2. |     Securities |
|--------------|------------------------------------|

|                                           |   | June 30,      2008 |    |
|------------------------------------------------|--------|-------------------------|---------|
|                                           |   |                    |    |   | Gross |   |   | Gross |   |   |   |   |
|                                           |   | Amortized               |    |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
| Securities      Available-for-Sale             |   | Cost                    |    |   | Gains |   |   | Losses |   |   | Value |   |
|                                           |   | (In      Thousands)     |    |
| Debt      Securities                           |   |                    |    |   |   |   |   |   |   |   |   |   |
| FHLMC      Mortgage-Backed Certificates        |   | $                       | 13,683  |   |   | $ | - |   |   | $ | 664 |   |   | $ | 13,019 |   |
| FNMA      Mortgage-Backed Certificates         |   |                    | 84,069  |   |   |   | 24 |   |   |   | 3,111 |   |   |   | 80,982 |   |
| GNMA      Mortgage-Backed Certificates         |   |                    | 163     |   |   |   | - |   |   |   | 3 |   |   |   | 160 |   |
|                                           |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Debt Securities                     |   |                    | 97,915  |   |   |   | 24 |   |   |   | 3,778 |   |   |   | 94,161 |   |
|                                           |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      Securities                         |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 242,745      Shares, AMF ARM Fund              |   |                    | 2,400   |   |   |   | - |   |   |   | 237 |   |   |   | 2,163 |   |
|                                           |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Securities Available-for- Sale |   | $                       | 100,315 |   |   | $ | 24 |   |   | $ | 4,015 |   |   | $ | 96,324 |   |
|                                           |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      Held-to-Maturity               |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |                    |    |   |   | (In      Thousands) |   |   |   |   |   |
| Debt      Securities                           |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GNMA      Mortgage-Backed Certificates         |   | $                       | 346     |   |   | $ | 14 |   |   | $ | - |   |   | $ | 360 |   |
| FNMA      Mortgage-Backed Certificates         |   |                    | 112     |   |   |   | 1 |   |   |   | - |   |   |   | 113 |   |
| FHLMC      Mortgage-Backed Certificates        |   |                    | 34      |   |   |   | - |   |   |   | - |   |   |   | 34 |   |
|                                           |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Debt Securities                     |   |                    | 492     |   |   |   | 15 |   |   |   | - |   |   |   | 507 |   |
|                                           |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      Securities (Non-Marketable)        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 11,961      Shares - Federal Home Loan Bank    |   |                    | 1,196   |   |   |   | - |   |   |   | - |   |   |   | 1,196 |   |
|                                           |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Securities Held-to-Maturity         |   | $                       | 1,688   |   |   | $ | 15 |   |   | $ | - |   |   | $ | 1,703 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      2. |     Securities      (Continued) |
|--------------|-----------------------------------------------------|

|                                       |   | June 30,      2007 |   |
|--------------------------------------------|--------|-------------------------|--------|
| Securities      Available-for-Sale         |   | Amortized      Cost     |   |   | Gross      Unrealized Gains |   |   | Gross      Unrealized Losses |   |   | Fair      Value |   |
|                                       |   | (In      Thousands)     |   |
| Debt      Securities                       |   |                    |   |   |   |   |   |   |   |   |   |   |
| FHLMC      Mortgage-Backed Certificates    |   | $                       | 8,114  |   |   | $ | - |   |   | $ | 499 |   |   | $ | 7,615 |   |
| FNMA      Mortgage-Backed Certificates     |   |                    | 77,379 |   |   |   | 1 |   |   |   | 3,740 |   |   |   | 73,640 |   |
| GNMA      Mortgage-Backed Certificates     |   |                    | 274    |   |   |   | 1 |   |   |   | 5 |   |   |   | 270 |   |
|                                       |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Debt Securities                 |   |                    | 85,767 |   |   |   | 2 |   |   |   | 4,244 |   |   |   | 81,525 |   |
|                                       |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      Securities                     |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 231,234      Shares, AMF ARM Fund          |   |                    | 2,290  |   |   |   | - |   |   |   | 63 |   |   |   | 2,227 |   |
|                                       |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Securities Available-for- Sale  |   | $                       | 88,057 |   |   | $ | 2 |   |   | $ | 4,307 |   |   | $ | 83,752 |   |
|                                       |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      Held-to-Maturity           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |                    |   |   |   | (In      Thousands) |   |   |   |   |   |
| Debt      Securities                       |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GNMA      Mortgage-Backed Certificates     |   | $                       | 445    |   |   | $ | 11 |   |   | $ | - |   |   | $ | 456 |   |
| FNMA      Mortgage-Backed Certificates     |   |                    | 142    |   |   |   | 2 |   |   |   | - |   |   |   | 144 |   |
| FHLMC      Mortgage-Backed Certificates    |   |                    | 42     |   |   |   | 1 |   |   |   | - |   |   |   | 43 |   |
|                                       |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Debt Securities                 |   |                    | 629    |   |   |   | 14 |   |   |   | - |   |   |   | 643 |   |
|                                       |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      Securities (Non-Marketable)    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 7,795      Shares - Federal Home Loan Bank |   |                    | 779    |   |   |   | - |   |   |   | - |   |   |   | 779 |   |
|                                       |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Securities Held-to- Maturity    |   | $                       | 1,408  |   |   | $ | 14 |   |   | $ | - |   |   | $ | 1,422 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      2. |     Securities      (Continued) |
|--------------|-----------------------------------------------------|

|                              |   | Available-for-Sale |   |   | Held-to-Maturity    |   |
|-----------------------------------|--------|--------------------|--------|--------|---------------------|--------|
|                              |   | Amortized          |   |   | Fair                |   |   | Amortized |   |   | Fair |   |
|                              |   | Cost               |   |   | Value               |   |   | Cost |   |   | Value |   |
|                              |   |               |   |   | (In      Thousands) |   |   |   |   |
| Within      one year or less      |   | $                  | -      |   |                | $      | - |   |   | $ | - |   |   | $ | - |   |
| One      through five years       |   |               | -      |   |                |   | - |   |   |   | 75 |   |   |   | 76 |   |
| After      five through ten years |   |               | 780    |   |                |   | 777 |   |   |   | 181 |   |   |   | 182 |   |
| Over      ten years               |   |               | 97,135 |   |                |   | 93,384 |   |   |   | 236 |   |   |   | 249 |   |
|                              |   |               |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Totals                            |   | $                  | 97,915 |   |                | $      | 94,161 |   |   | $ | 492 |   |   | $ | 507 |   |

|                                        |   | June 30,      2008      |   |
|---------------------------------------------|--------|------------------------------|--------|
|                                        |   |                         |   |
|                                        |   | Less      Than Twelve Months |   |   | Over      Twelve Months |   |
|                                        |   |                         |   |   |   |   |   |   |   |   |   |   |
|                                        |   | Gross                        |   |   |   |   |   | Gross |   |   |   |   |
|                                        |   | Unrealized                   |   |   | Fair |   |   | Unrealized |   |   | Fair |   |
| Securities      Available-for-Sale          |   | Losses                       |   |   | Value |   |   | Losses |   |   | Value |   |
|                                        |   |                         |   |   | (In      Thousands) |   |   |   |
| Debt      Securities                        |   |                         |   |   |   |   |   |   |   |   |   |   |
|   Mortgage-Backed      Securities |   | $                            | 1,336  |   |   | $ | 31,202 |   |   | $ | 2,442 |   |   | $ | 59,085 |   |
| Marketable      Equity Securities           |   |                         | -      |   |   |   | - |   |   |   | 237 |   |   |   | 2,163 |   |
|                                        |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Securities                       |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Available-for-Sale              |   | $                            | 1,336  |   |   | $ | 31,202 |   |   | $ | 2,679 |   |   | $ | 61,248 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      2. |     Securities      (Continued) |
|--------------|-----------------------------------------------------|

|                                        |   | June 30,      2007      |   |
|---------------------------------------------|--------|------------------------------|--------|
|                                        |   |                         |   |
|                                        |   | Less      Than Twelve Months |   |   | Over      Twelve Months |   |
|                                        |   |                         |   |   |   |   |   |   |   |   |   |   |
|                                        |   | Gross                        |   |   |   |   |   | Gross |   |   |   |   |
|                                        |   | Unrealized                   |   |   | Fair |   |   | Unrealized |   |   | Fair |   |
| Securities      Available-for-Sale          |   | Losses                       |   |   | Value |   |   | Losses |   |   | Value |   |
|                                        |   |                         |   |   | (In      Thousands) |   |   |   |
| Debt Securities                             |   |                         |   |   |   |   |   |   |   |   |   |   |
|   Mortgage-Backed      Securities |   | $                            | 539    |   |   | $ | 19,418 |   |   | $ | 3,705 |   |   | $ | 61,459 |   |
| Marketable      Equity Securities           |   |                         | -      |   |   |   | - |   |   |   | 63 |   |   |   | 2,227 |   |
|                                        |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Total Securities                |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-Sale                          |   | $                            | 539    |   |   | $ | 19,418 |   |   | $ | 3,768 |   |   | $ | 63,686 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      3. |     Loans      Receivable |
|--------------|-----------------------------------------------|

|                                                       |   | 2008                |   |   | 2007   |   |
|------------------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                                       |   | (In      Thousands) |   |
| Mortgage      Loans (Principally Conventional)             |   |                |   |   |   |   |
| Principal      Balances                                    |   |                |   |   |   |   |
| Secured      by One-to-Four Family Residences              |   | $                   | 18,736 |   |   | $      | 16,669 |   |
| Secured      by Other Properties                           |   |                | 4,945  |   |   |   | 3,650 |   |
|                                                       |   |                |   |   |   |   |   |   |
| Total      Mortgage Loans                                  |   |                | 23,681 |   |   |   | 20,319 | U |
|                                                       |   |                |   |   |   |   |   |   |
| Consumer      and Other Loans                              |   |                |   |   |   |   |   |   |
| Principal      Balances                                    |   |                |   |   |   |   |   |   |
| Equity      and Second Mortgage                            |   |                | 3,848  |   |   |   | 4,454 |   |
| Loans      on Savings Accounts                             |   |                | 573    |   |   |   | 283 |   |
| Equity      Lines of Credit                                |   |                | 461    |   |   |   | 427 |   |
| Automobile      Loans                                      |   |                | 51     |   |   |   | 57 | U |
|                                                       |   |                |   |   |   |   |   |   |
| Total      Consumer and Other Loans                        |   |                | 4,933  |   |   |   | 5,221 | U |
|                                                       |   |                |   |   |   |   |   |   |
| Total      Loans                                           |   |                | 28,614 |   |   |   | 25,540 |   |
|                                                       |   |                |   |   |   |   |   |   |
| Less:      Allowance for Loan Losses                       |   |                | (235   | )      |   |   | (235 | ) |
|        Unamortized Loan Fees                          |   |                | (116   | )      |   |   | (94U | ) |
|                                                       |   |                |   |   |   |   |   |   |
|        Net Loans Receivable                           |   | $                   | 28,263 |   |   | $      | 25,211 |   |
|                                                       |   |                |   |   |   |   |   |   |
|                                                       |   |                |   |   |   |   |   |   |
| An      analysis of the allowance for loan losses follows: |   |                |   |   |   |   |   |   |
|                                                       |   |                |   |   |   |   |   |   |
|                                                       |   |                | 2008   |   |   |   | 2007  |   |
| (In      Thousands)                                        |   |                |   |   |   |   |   |   |
| Balance      - Beginning of Year                           |   | $                   | 235    |   |   | $      | 235 |   |
| Provision      for Loan Losses                             |   |                | -      |   |   |   | 1 |   |
| Loan      Charge-Offs                                      |   |                | U-     |   |   |   | (1U | ) |
| Balance      - End of Year                                 |   | $                   | 235    |   |   | $      | 235 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      3. |     Loans      Receivable (Continued) |
|--------------|-----------------------------------------------------------|

|                                                 |   | Under      One Year |   |   | One      to Five Years |   |   | Six      to Ten Years |   |   | Over      Ten Years |   |   | Total  |   |
|------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|--------|-----------------------|--------|--------|---------------------|--------|--------|--------|--------|
|                                                 |   |                |   |   |                   |   |   |                  |   |   |                |   |   |   |   |
| Loans      Secured by One-to-Four Family Residential |   |                |   |   |                   |   |   |                  |   |   |                |   |   |   |   |
|   Fixed      Rate                          |   | $                   | 550    |   |                   | $      | 290    |                  |   | $      | 601                 |   |   | $      | 6,842  |   |   | $ | 8,283 |   |
|   Adjustable      Rate                     |   |                | 10,453 |   |                   |   | -      |                  |   |   | -                   |   |   |   | -      |   |   |   | 10,453 |   |
| Other      Loans Secured by Real Estate              |   |                |   |   |                   |   |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |
|   Fixed      Rate                          |   |                | -      |   |                   |   | -      |                  |   |   | -                   |   |   |   | 4,945  |   |   |   | 4,945 |   |
| All      Other Loans                                 |   |                | 847    |   |                   |   | 954    |                  |   |   | 968                 |   |   |   | 2,164  |   |   |   | 4,933 |   |
|                                                 |   |                |   |   |                   |   |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |
| Total                                                |   | $                   | 11,850 |   |                   | $      | 1,244  |                  |   | $      | 1,569               |   |   | $      | 13,951 |   |   | $ | 28,614 |   |

| Note      4. |     Accrued      Interest Receivable |
|--------------|----------------------------------------------------------|

|                            |   | 2008                |   |   | 2007   |   |
|---------------------------------|--------|---------------------|--------|--------|--------|--------|
|                            |   | (In      Thousands) |   |
|                            |   |                |   |   |   |   |
| Accrued      Interest on:       |   |                |   |   |   |   |
| Mortgage      Loans             |   | $                   | 128    |   |   | $      | 105 |   |
| Other      Loans                |   |                | 19     |   |   |   | 25 |   |
| Investments                     |   |                | 8      |   |   |   | 10 |   |
| Mortgage-Backed      Securities |   |                | U395   |   |   |   | 359 |   |
| Total                           |   | $                   | 550    |   |   | $      | 499 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      5. |     Premises and      Equipment |
|--------------|-----------------------------------------------------|

|                           |   | 2008   |   |   | 2007   |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|
| (In      Thousands)            |   |   |   |   |   |   |
|                           |   |   |   |   |   |   |
| Land                           |   | $      | 727    |   |   | $      | 727 |   |
| Buildings                      |   |   | 1,134  |   |   |   | 1,132 |   |
| Equipment                      |   |   | 601    |   |   |   | 601 | U |
|                           |   |   |   |   |   |   |   |   |
|                           |   |   | 2,462  |   |   |   | 2,460 |   |
| Accumulated      DepreciationU |   |   | (1,582 | )      |   |   | (1,537U | ) |
| Total                          |   | $      | 880    |   |   | $      | 923 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      6. |     Deposits |
|--------------|----------------------------------|

|                         |   | Weighted      Average Rate at |   |   | 2008                        |   |   | 2007    |   |
|------------------------------|--------|-------------------------------|--------|--------|-----------------------------|--------|--------|---------|--------|
|                         |   | 6/30/2008                     |   |   | Amount                      |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                         |   |                          |   |   | (Dollars      in Thousands) |   |
| Non-Interest      Bearing    |   |                          | 0.00   | %      |                        | $      | 1,679  |    |   |   | 2.14 | % |   | $ | 1,372 |   |   |   | 1.77 | % |
| NOW      Accounts            |   |                          | 0.17   | %      |                        |   | 6,854  |    |   |   | 8.75 |   |   |   | 5,921 |   |   |   | 7.61 |   |
| Money      Market            |   |                          | 0.40   | %      |                        |   | 2,882  |    |   |   | 3.68 |   |   |   | 2,941 |   |   |   | 3.79 |   |
| Passbook      Savings        |   |                          | 0.50   | %      |                        |   | 4,836  |    |   |   | 6.17 |   |   |   | 4,473 |   |   |   | 5.76 |   |
|                         |   |                          |   |   |                        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                         |   |                          |   |   |                        |   | 16,251 |    |   |   | 20.74 |   |   |   | 14,707 |   |   |   | 18.93 |   |
| Certificates      of Deposit |   |                          | 4.33   | %      |                        |   | 62,108 |    |   |   | 79.26 |   |   |   | 63,003 |   |   |   | 81.07 |   |
|                         |   |                          |   |   |                        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Deposits          |   |                          |   |   |                        | $      | 78,359 |    |   |   | 100.00 | % |   | $ | 77,710 |   |   |   | 100.00 | % |

|   | The      composition of Certificates of Deposit accounts by interest rate is as      follows: |
|--------|-----------------------------------------------------------------------------------------------|

|                |   | 2008                        |   |   | 2007    |   |
|---------------------|--------|-----------------------------|--------|--------|---------|--------|
|                |   | Amount                      |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                |   | (Dollars      in Thousands) |   |
| 0.00%      to 0.99% |   | $                           | 9      |   |    |   | 0.00 | % |   | $ | 9 |   |   |   | 0.00 | % |
| 1.00%      to 1.99% |   |                        | 127    |   |    |   | 0.21 |   |   |   | 194 |   |   |   | 0.31 |   |
| 2.00%      to 2.99% |   |                        | 9,074  |   |    |   | 14.61 |   |   |   | 1,543 |   |   |   | 2.45 |   |
| 3.00%      to 3.99% |   |                        | 12,840 |   |    |   | 20.68 |   |   |   | 12,164 |   |   |   | 19.31 |   |
| 4.00%      to 4.99% |   |                        | 24,724 |   |    |   | 39.81 |   |   |   | 18,388 |   |   |   | 29.19 |   |
| 5.00%      to 5.99% |   |                        | 15,334 |   |    |   | 24.69 |   |   |   | 30,705 |   |   |   | 48.74 |   |
|                |   |                        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Total      Deposits |   | $                           | 62,108 |   |    |   | 100.00 | % |   | $ | 63,003 |   |   |   | 99.99 | % |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      6. |     Deposits      (Continued) |
|--------------|---------------------------------------------------|

|   | Maturities      of Certificates of Deposit accounts at June 30, 2008, are scheduled as      follows: |
|--------|------------------------------------------------------------------------------------------------------|

| Year      Ending        June 30, |   | Amount                      |   |   | Percent |   |   | Weighted      Average Rate |   |
|--------------------------------------------|--------|-----------------------------|--------|--------|---------|--------|--------|----------------------------|--------|
|                                       |   | (Dollars      in Thousands) |   |   |    |   |
| 2009                                       |   | $                           | 41,504 |   |    |   | 66.83  | %                          |   |   | 4.2 | % |
| 2010                                       |   |                        | 10,427 |   |    |   | 16.79  |                       |   |   | 4.5 | % |
| 2011                                       |   |                        | 4,527  |   |    |   | 7.29   |                       |   |   | 4.7 | % |
| 2012                                       |   |                        | 3,721  |   |    |   | 5.99   |                       |   |   | 5.0 | % |
| 2013                                       |   |                        | 1,929  |   |    |   | 3.10   |                       |   |   | 4.7 | % |
| Thereafter                                 |   |                        | -      |   |    |   | -      |                       |   |   | 0.0 | % |
|                                       |   |                        |   |   |    |   |   |                       |   |   |   |   |
| Total                                      |   | $                           | 62,108 |   |    |   | 100.00 | %                          |   |   |   |   |

|                         |   | 2008                |   |   | 2007   |   |
|------------------------------|--------|---------------------|--------|--------|--------|--------|
|                         |   | (In      Thousands) |   |
|                         |   |                |   |   |   |   |
| NOW      and Money Market    |   | $                   | 28     |   |   | $      | 27 |   |
| Passbook      Savings        |   |                | 22     |   |   |   | 23 |   |
| Certificates      of Deposit |   |                | 2,985  |   |   |   | 2,710 |   |
|                         |   |                |   |   |   |   |   |   |
| Total                        |   | $                   | 3,035  |   |   | $      | 2,760 |   |

| Note      7. |     Advances from      Federal Home Loan Bank of Dallas |
|--------------|-----------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      7. |     Advances from      Federal Home Loan Bank of Dallas(Continued) |
|--------------|----------------------------------------------------------------------------------------|

|                |   | UAdvance      Total |    |
|---------------------|--------|---------------------|---------|
|                |   | 2008                |    |   | 2007 |   |
|                |   | (In      Thousands) |    |
|                |   |                |    |   |   |   |
| 2.00%      to 2.99% |   | $                   | 6,876   |   |   | $ | 916 |   |
| 3.00%      to 3.99% |   |                | 2,245   |   |   |   | 1,016 |   |
| 4.00%      to 4.99% |   |                | 7,179   |   |   |   | 3,459 |   |
| 5.00%      to 5.99% |   |                | U10,576 |   |   |   | 6,977 |   |
|                |   |                |    |   |   |   |   |   |
| Total               |   | $                   | 26,876  |   |   | $ | 12,368 |   |

| Years      Ended |   |   |   |
|------------------|--------|--------|--------|
| June 30,         |   | Amount |   |
|             |   |   |   |
| 2009             |   | $      | 9,579  |   |
| 2010             |   |   | 4,436  |   |
| 2011             |   |   | 4,432  |   |
| 2012             |   |   | 3,606  |   |
| 2013             |   |   | 1,951  |   |
| Thereafter       |   |   | 2,872  |   |
|             |   |   |   |   |
| Total            |   | $      | 26,876 |   |

| Note      8. |     Commitments |
|--------------|-------------------------------------|

| 2009   |   | $      | 48     |   |
|--------|--------|--------|--------|--------|
| 2010   |   |   | U28    |   |
|   |   |   |   |   |
| Total  |   | $      | 76     |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      9. |     Federal      Income Taxes |
|--------------|---------------------------------------------------|

|                    |   | 2008                |   |   | 2007   |   |
|-------------------------|--------|---------------------|--------|--------|--------|--------|
|                    |   | (In      Thousands) |   |
|                    |   |                |   |   |   |   |
| Federal                 |   |                |   |   |   |   |
| Current                 |   | $                   | 278    |   |   | $      | 348 |   |
| Deferred      (Benefit) |   |                | (321   | )      |   |   | (21 | ) |
| State                   |   |                |   |   |   |   |   |   |
| Current                 |   |                | U-     |   |   |   | - U |   |
|                    |   |                |   |   |   |   |   |   |
| Total                   |   | $                   | (43    | )      |   | $      | 327 |   |

|   | The      effective federal income tax rate for the years ended June 30, 2008 and      2007 was 33.93% and 33.94%, respectively.  The provision for      income tax differs from that expected by applying federal income tax rates      to income before income taxes as a result of the  following: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   | 2008                |   |   | 2007   |   |
|-------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                            |   | (In      Thousands) |   |
|                                            |   |                |   |   |   |   |
| Expected      Tax Provision at a 34% Rate       |   | $                   | (42    | )      |   | $      | 328 |   |
| Effect      of Non-Taxable Income               |   |                | (1     | )      |   |   | (1U | ) |
|                                            |   |                |   |   |   |   |   |   |
| Provision      for Income Tax (Benefit) Expense |   | $                   | (43    | )      |   | $      | 327 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      9.  |     Federal      Income Taxes (Continued) |
|--------------------|---------------------------------------------------------------|

|                                               |   | 2008                |   |   | 2007   |   |
|----------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                               |   | (In      Thousands) |   |
| Deferred      Tax Asset or Liability               |   |                |   |   |   |   |
| Stock      Option Compensation                     |   | $                   | 61     |   |   | $      | 39 |   |
| Loans      Receivable - Bad Debt Loss Allowances   |   |                | (27    | )      |   |   | (27 | ) |
| Securities      Available-for-Sale Unrealized Loss |   |                | 1,357  |   |   |   | 1,464 |   |
| Conversion      and Merger Expense                 |   |                | U300   |   |   |   | - U |   |
|                                               |   |                |   |   |   |   |   |   |
| Total      Deferred Tax Asset                      |   | $                   | 1,691  |   |   | $      | 1,476 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      10. |     Other      Non-Interest Income and Expense |
|---------------|--------------------------------------------------------------------|

|                                            |   | 2008                |   |   | 2007   |   |
|-------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                            |   | (In      Thousands) |   |
| Other      Non-Interest Income                  |   |                |   |   |   |   |
| Service      Fees on NOW Accounts               |   | $                   | 22     |   |   | $      | 19 |   |
| Late      Charges                               |   |                | 5      |   |   |   | 5 |   |
| Commissions      and Other                      |   |                | U16    |   |   |   | 45 |   |
|                                            |   |                |   |   |   |   |   |   |
| Total      Other Non-Interest Income            |   | $                   | 43     |   |   | $      | 69 |   |
|                                            |   |                |   |   |   |   |   |   |
| Other      Non-Interest Expense                 |   |                |   |   |   |   |   |   |
| NOW      Account Expense                        |   | $                   | 59     |   |   | $      | 45 |   |
| Loan      Expenses                              |   |                | 6      |   |   |   | 4 |   |
| Office      Supplies                            |   |                | 26     |   |   |   | 29 |   |
| Telephone                                       |   |                | 37     |   |   |   | 32 |   |
| Postage                                         |   |                | 18     |   |   |   | 17 |   |
| Business      Insurance and Bonds               |   |                | 34     |   |   |   | 34 |   |
| Organization      Dues and Publications         |   |                | 8      |   |   |   | 9 |   |
| Charitable      Contributions                   |   |                | 3      |   |   |   | 3 |   |
| Miscellaneous                                   |   |                | 71     |   |   |   | 74 |   |
| Automobile      Expense, Including Depreciation |   |                | 21     |   |   |   | 21 |   |
| Consulting      Fees                            |   |                | 30     |   |   |   | 28 |   |
| Registration      Fees                          |   |                | U9     |   |   |   | 8 |   |
|                                            |   |                |   |   |   |   |   |   |
| Total      Other Non-Interest Expense           |   | $                   | 322    |   |   | $      | 304 |   |

| Note      11. |     Retirement      Plans |
|---------------|-----------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      12. |     Employee Stock      Ownership Plan |
|---------------|------------------------------------------------------------|

| Allocated      Shares                                    |   |   | 17,083  |   |
|----------------------------------------------------------|--------|--------|---------|--------|
| Shares      Released for Allocation                      |   |   | 2,847   |   |
| Unreleased      Shares                                   |   |   | 93,957  |   |
|                                                     |   |   |    |   |
| Total      ESOP Shares                                   |   |   | 113,887 |   |
|                                                     |   |   |    |   |
| Fair      Value of Unreleased Shares (In      Thousands) |   | $      | 836     |   |
|                                                     |   |   |    |   |
| Stock      Price at June 30, 2008                        |   | $      | 8.90    |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      13. |     Recognition and      Retention Plan |
|---------------|-------------------------------------------------------------|

|                             |   | Unawarded      Shares |   |   | Awarded      Shares |   |
|----------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|                             |   | 2008                  |   |   | 2007                |   |   | 2008 |   |   | 2007 |   |
|                             |   |                  |   |   |                |   |   |   |   |   |   |   |
| Balance      - Beginning of Year |   |                  | 1,490  |   |                |   | - |   |   |   | 54,605 |   |   |   | 69,756 |   |
| Purchased      by Plan           |   |                  | -      |   |                |   | - |   |   |   | - |   |   |   | - |   |
| Granted                          |   |                  | -      |   |                |   | - |   |   |   | - |   |   |   | - |   |
| Forfeited                        |   |                  | 381    |   |                |   | 1,490 |   |   |   | (381 | ) |   |   | (1,490 | ) |
| Earned      and Issued           |   |                  | -      |   |                |   | - |   |   |   | (15,810 | ) |   |   | (13,661 | ) |
|                             |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Balance      - End of Year       |   |                  | 1,871  |   |                |   | 1,490 |   |   |   | 38,414 |   |   |   | 54,605 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      14. |     Stock      Option Plan |
|---------------|------------------------------------------------|

|                                           |   | Number      of Shares |    |   | Weighted      Average Exercise Price |   |
|------------------------------------------------|--------|-----------------------|---------|--------|--------------------------------------|--------|
| Outstanding      at July 1, 2007          |   |                  | 170,857 |   |                                 | $      | 9.85 |   |
| Granted                                        |   |                  | -       |   |                                 |   | - |   |
| Exercised                                      |   |                  | -       |   |                                 |   | - |   |
| Forfeited                                      |   |                  | (1,095  | )      |                                 |   | 9.85 |   |
| Outstanding      at June 30, 2008         |   |                  | 169,762 |   |                                 | $      | 9.85 |   |
|                                           |   |                  |    |   |                                 |   |   |   |
| Options      Exercisable at June 30, 2008 |   |                  | 73,688  |   |                                 | $      | 9.85 |   |
|                                           |   |                  |    |   |                                 |   |   |   |
| Outstanding      at July 1, 2006          |   |                  | 174,389 |   |                                 | $      | 9.85 |   |
| Granted                                        |   |                  | -       |   |                                 |   | - |   |
| Exercised                                      |   |                  | -       |   |                                 |   | - |   |
| Forfeited                                      |   |                  | (3,532  | )      |                                 |   | 9.85 |   |
| Outstanding      at June 30, 2007         |   |                  | 170,857 |   |                                 | $      | 9.85 |   |
|                                           |   |                  |    |   |                                 |   |   |   |
| Options      Exercisable at June 30, 2007 |   |                  | 34,179  |   |                                 | $      | 9.85 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      14. |     Stock      Option Plan (Continued) |
|---------------|------------------------------------------------------------|

| Dividend      Yield          |   |          | 2.0    | % |
|------------------------------|--------|---------------|--------|---|
| Expected      Term           |   | 10      Years |   |
| Risk-free      Interest Rate |   |          | 4.13   | % |
| Expected      Life           |   | 10      Years |   |
| Expected      Volatility     |   |          | 8.59   | % |

|                      |   |   | Options      Outstanding |   |                                             | Options      Exercisable |                                 |
|---------------------------|--------|--------|--------------------------|--------|--------------------------------------------------|--------------------------|--------------------------------------|
| Exercise      Price Range |   |   | Number                   |   | Weighted      Average Remaining Contractual Life |                     | Weighted      Average Exercise Price |   |   | Number |   |   | Weighted      Average Exercise Price |   |
| $                         | 9.85   |   |                     |   | 169,762                                          |                     | 6.26      Years                      |   | $ | 9.85 |   |   |   | 73,688 |   |   | $ | 9.85 |   |

| Note      15. |     Off-Balance      Sheet Activities |
|---------------|-----------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      15. |     Off-Balance      Sheet Activities (Continued) |
|---------------|-----------------------------------------------------------------------|

|                                            |   | UContract      Amount |   |
|-------------------------------------------------|--------|-----------------------|--------|
|                                            |   | 2008                  |   |   | 2007 |   |
|                                            |   | (In      Thousands)   |   |
|                                            |   |                  |   |   |   |   |
| Commitments      to Grant Loans                 |   | $                     | 104    |   |   | $ | 2,132 |   |
| Unfunded      Commitments Under Lines of Credit |   |                  | 847    |   |   |   | 1,325 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      15. |     Off-Balance      Sheet Activities (Continued) |
|---------------|-----------------------------------------------------------------------|

| Note      16. |     Related      Party Events |
|---------------|---------------------------------------------------|

|                             |   | 2008                |   |   | 2007   |   |
|----------------------------------|--------|---------------------|--------|--------|--------|--------|
|                             |   | (In      Thousands) |   |
|                             |   |                |   |   |   |   |
| Balance      - Beginning of Year |   | $                   | 266    |   |   | $      | 300 |   |
| Additions                        |   |                | 195    |   |   |   | - |   |
| Principal      Payments          |   |                | (31    | )      |   |   | (34 | ) |
| Balance      - End of Year       |   | $                   | 430    |   |   | $      | 266 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      17. |     Merger      and Stock Issuance Costs |
|---------------|--------------------------------------------------------------|

| Note      18. |     Regulatory      Matters |
|---------------|-------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      18. |     Regulatory      Matters (Continued) |
|---------------|-------------------------------------------------------------|

|                          |      | Actual |                        |   | Required      for Capital Adequacy      Purposes |   |
|-------------------------------|-----------|--------|-----------------------------|--------|--------------------------------------------------|--------|
|                          |      | Amount |                        |   | Ratio                                            |   |   | Amount |   |   | Ratio |   |
|                          |      |   | (Dollars      in Thousands) |   |
| June 30, 2008       |      |   |                        |   |                                             |   |   |   |   |   |   |   |   |
| Core      Capital             |  (1) |   | $                           | 28,312 |                                             |   |   | 20.21 | % |   | $ | 4,203 |   |   |   | 3.00 | % |
| Tangible      Capital         |  (1) |   |                        | 28,312 |                                             |   |   | 20.21 | % |   |   | 2,101 |   |   |   | 1.50 | % |
| Total      Risk-Based Capital |  (2) |   |                        | 28,547 |                                             |   |   | 73.08 | % |   |   | 3,125 |   |   |   | 8.00 | % |
|                          |      |   |                        |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| June 30,      2007       |      |   |                        |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Core      Capital             |  (1) |   | $                           | 27,724 |                                             |   |   | 22.79 | % |   | $ | 3,649 |   |   |   | 3.00 | % |
| Tangible      Capital         |  (1) |   |                        | 27,724 |                                             |   |   | 22.79 | % |   |   | 1,825 |   |   |   | 1.50 | % |
| Total      Risk-Based Capital |  (2) |   |                        | 27,959 |                                             |   |   | 80.63 | % |   |   | 2,774 |   |   |   | 8.00 | % |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      18. |     Regulatory      Matters (Continued) |
|---------------|-------------------------------------------------------------|

|                           |      | Actual                      |   |   | Required      to be Well Capitalized |   |
|--------------------------------|-----------|-----------------------------|--------|--------|--------------------------------------|--------|
|                           |      | Amount                      |   |   | Ratio                                |   |   | Amount |   |   | Ratio |   |
|                           |      | (Dollars      in Thousands) |   |
| June      30, 2008             |      |                        |   |   |                                 |   |   |   |   |   |   |   |   |
| Tier      1 Leverage Capital   |  (1) |                        | $      | 28,312 |                                 |   |   | 20.21 | % |   | $ | 7,005 |   |   |   | 5.00 | % |
| Tier      1 Risk-Based Capital |  (2) |                        |   | 28,312 |                                 |   |   | 72.48 | % |   |   | 2,344 |   |   |   | 6.00 | % |
| Total      Risk-Based Capital  |  (2) |                        |   | 28,547 |                                 |   |   | 73.08 | % |   |   | 3,906 |   |   |   | 10.00 | % |
|                           |      |                        |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| June      30, 2007             |      |                        |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      1 Leverage Capital   |  (1) |                        | $      | 27,724 |                                 |   |   | 22.79 | % |   | $ | 6,082 |   |   |   | 5.00 | % |
| Tier      1 Risk-Based Capital |  (2) |                        |   | 27,724 |                                 |   |   | 79.95 | % |   |   | 2,081 |   |   |   | 6.00 | % |
| Total      Risk-Based Capital  |  (2) |                        |   | 27,959 |                                 |   |   | 80.63 | % |   |   | 3,468 |   |   |   | 10.00 | % |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      18. |     Regulatory      Matters (Continued) |
|---------------|-------------------------------------------------------------|

|                                                             |   | Actual                      |   |   | Minimum      for Capital Adequacy      Purposes |   |
|------------------------------------------------------------------|--------|-----------------------------|--------|--------|-------------------------------------------------|--------|
| June      30, 2008                                               |   | Ratio                       |   |   | Amount                                          |   |   | Ratio |   |   | Amount |   |
|                                                             |   | (Dollars      in Thousands) |   |
|                                                             |   |                        |   |   |                                            |   |   |   |   |   |   |   |
| Total      Equity, and Ratio to Total Assets                     |   |                        | 18.84  | %      |                                            | $      | 25,950 |   |   |   |   |   |   |   |
| Investments      in and Advances to Nonincludable Subsidiaries   |   |                        |   |   |                                            | $      | (272 | ) |   |   |   |   |   |   |
| Unrealized      Losses on Securities Available-for-Sale          |   |                        |   |   |                                            |   | 2,634 |   |   |   |   |   |   |   |
| Tangible      Capital, and Ratio to Adjusted Total Assets        |   |                        | 20.21  | %      |                                            | $      | 28,312 |   |   |   | 1.5 | % |   | $ | 2,101 |   |
| Tier      1 (Core) Capital, and Ratio to Adjusted Total Assets   |   |                        | 20.21  | %      |                                            | $      | 28,312 |   |   |   | 3.0 | % |   | $ | 4,203 |   |
| Tier      1 (Core) Capital, and Ratio to Risk-Weighted Assets    |   |                        | 72.48  | %      |                                            | $      | 28,312 |   |   |   |   |   |   |   |   |   |
| Allowance      for Loan Losses                                   |   |                        |   |   |                                            |   | 235 |   |   |   |   |   |   |   |   |   |
| Equity      Investment                                           |   |                        |   |   |                                            |   | - |   |   |   |   |   |   |   |   |   |
|                                                             |   |                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Total      Risk-Based Capital, and Ratio to Risk-Weighted Assets |   |                        | 73.08  | %      |                                            | $      | 28,547 |   |   |   | 8.0 | % |   | $ | 3,125 |   |
|                                                             |   |                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Total      Assets                                                |   |                        |   |   |                                            | $      | 137,732 |   |   |   |   |   |   |   |   |   |
|                                                             |   |                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted      Total Assets                                       |   |                        |   |   |                                            | $      | 140,094 |   |   |   |   |   |   |   |   |   |
|                                                             |   |                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Risk-Weighted      Assets                                        |   |                        |   |   |                                            | $      | 39,064 |   |   |   |   |   |   |   |   |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      19. |     Regulatory      Matters (Continued) |
|---------------|-------------------------------------------------------------|

|                                                             |   | Actual                      |   |   | Minimum      for Capital Adequacy      Purposes |   |
|------------------------------------------------------------------|--------|-----------------------------|--------|--------|-------------------------------------------------|--------|
| June      30, 2007                                               |   | Ratio                       |   |   | Amount                                          |   |   | Ratio |   |   | Amount |   |
|                                                             |   | (Dollars      in Thousands) |   |
|                                                             |   |                        |   |   |                                            |   |   |   |   |   |   |   |
| Total      Equity, and Ratio to Total Assets                     |   |                        | 21.13  | %      |                                            | $      | 25,156 |   |   |   |   |   |   |   |
| Investments      in and Advances to Nonincludable Subsidiaries   |   |                        |   |   |                                            | $      | (272 | ) |   |   |   |   |   |   |
| Unrealized      Losses on Securities      Available-for-Sale     |   |                        |   |   |                                            |   | 2,840 |   |   |   |   |   |   |   |
| Tangible      Capital, and Ratio to Adjusted Total Assets        |   |                        | 22.79  | %      |                                            | $      | 27,724 |   |   |   | 1.5 | % |   | $ | 1,825 |   |
| Tier      1 (Core) Capital, and Ratio to Adjusted Total Assets   |   |                        | 22.79  | %      |                                            | $      | 27,724 |   |   |   | 3.0 | % |   | $ | 3,649 |   |
| Tier      1 (Core) Capital, and Ratio to Risk-Weighted Assets    |   |                        | 79.95  | %      |                                            | $      | 27,724 |   |   |   |   |   |   |   |   |   |
| Allowance      for Loan Losses                                   |   |                        |   |   |                                            |   | 235 |   |   |   |   |   |   |   |   |   |
| Equity      Investment                                           |   |                        |   |   |                                            |   | - |   |   |   |   |   |   |   |   |   |
|                                                             |   |                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Total      Risk-Based Capital, and Ratio to Risk-Weighted Assets |   |                        | 80.63  | %      |                                            | $      | 27,959 |   |   |   | 8.0 | % |   | $ | 2,774 |   |
|                                                             |   |                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Total      Assets                                                |   |                        |   |   |                                            | $      | 119,080 |   |   |   |   |   |   |   |   |   |
|                                                             |   |                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted      Total Assets                                       |   |                        |   |   |                                            | $      | 121,649 |   |   |   |   |   |   |   |   |   |
|                                                             |   |                        |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Risk-Weighted      Assets                                        |   |                        |   |   |                                            | $      | 34,676 |   |   |   |   |   |   |   |   |   |

| Note      19. |     Restrictions on      Dividends |
|---------------|--------------------------------------------------------|

| Note      20. |     Fair      Value of Financial Instruments |
|---------------|------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      20. |     Fair      Value of Financial Instruments(Continued) |
|---------------|-----------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      20. |     Fair      Value of Financial Instruments(Continued) |
|---------------|-----------------------------------------------------------------------------|

|                                   |   | 2008                |   |   | 2007                      |   |
|----------------------------------------|--------|---------------------|--------|--------|---------------------------|--------|
|                                   |   | Carrying      Value |   |   | Estimated      Fair Value |   |   | Carrying      Value |   |   | Estimated      Fair Value |   |
|                                   |   | (In      Thousands) |   |   | (In      Thousands)       |   |
| Financial      Assets                  |   |                |   |   |                      |   |   |   |   |   |   |   |
| Cash      and Cash Equivalents         |   | $                   | 7,363  |   |                      | $      | 7,363 |   |   | $ | 3,972 |   |   | $ | 3,972 |   |
| Securities      Available-for-Sale     |   |                | 96,324 |   |                      |   | 96,324 |   |   |   | 83,752 |   |   |   | 83,752 |   |
| Securities      to be Held-to-Maturity |   |                | 1,688  |   |                      |   | 1,703 |   |   |   | 1,408 |   |   |   | 1,422 |   |
| Loans      Held-for-Sale               |   |                | 852    |   |                      |   | 852 |   |   |   | 1,478 |   |   |   | 1,478 |   |
| Loans      Receivable                  |   |                | 28,263 |   |                      |   | 29,576 |   |   |   | 25,211 |   |   |   | 27,035 |   |
| Accrued      Interest Receivable       |   |                | 550    |   |                      |   | 550 |   |   |   | 499 |   |   |   | 499 |   |
|                                   |   |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Liabilities             |   |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                               |   |                | 78,359 |   |                      |   | 79,667 |   |   |   | 77,710 |   |   |   | 77,562 |   |
| Accrued      Interest Payable          |   |                | 144    |   |                      |   | 144 |   |   |   | 119 |   |   |   | 119 |   |
| Advances      from Borrowers           |   |                | 177    |   |                      |   | 177 |   |   |   | 196 |   |   |   | 196 |   |
| Advances      from FHLB                |   |                | 26,876 |   |                      |   | 26,753 |   |   |   | 12,368 |   |   |   | 11,945 |   |
|                                   |   |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Off-Balance      Sheet Liabilities     |   |                |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage      Loan Commitments         |   |                | -      |   |                      |   | 1 |   |   |   | - |   |   |   | 21 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      21. |     Earnings Per      Common Share |
|---------------|--------------------------------------------------------|

|                                                                                                         |   | 2008   |       |   | 2007   |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Average      Common Shares Issued                                                                            |   |   | 3,558,958  |   |   |   | 3,558,958 |   |
| Average      Treasury Shares Held                                                                            |   |   | (175,168   | )      |   |   | (57,721 | ) |
| Average      Unearned ESOP Shares                                                                            |   |   | (96,804    | )      |   |   | (103,217 | ) |
| Average      Unearned RRP Trust Shares                                                                       |   |   | (42,872    | )      |   |   | (57,892 | ) |
|                                                                                                         |   |   |       |   |   |   |   |   |
| Weighted      Average Number of Common Shares Used in Basic      EPS                                         |   |   | U3,244,114 |   |   |   | 3,340,128 |   |
|                                                                                                         |   |   |       |   |   |   |   |   |
| Effect      of Dilutive Securities Stock      Options                                                        |   |   | U-         |   |   |   | 7,378 |   |
|                                                                                                         |   |   |       |   |   |   |   |   |
| Weighted      Average Number of Common Shares and Dilutive      Potential Common Shares Used in Dilutive EPS |   |   | 3,244,114  |   |   |   | 3,347,506 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      22. |     Parent      Company Financial Statements |
|---------------|------------------------------------------------------------------|

|                                                 |   | 2008                |   |   | 2007   |   |
|------------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                                 |   | (In      Thousands) |   |
| Assets                                               |   |                |   |   |   |   |
| Cash      and Cash Equivalents                       |   | $                   | 1,535  |   |   | $      | 2,470 |   |
| Investments      - Available-for-Sale, at Fair Value |   |                | 301    |   |   |   | - |   |
| Investment      in Subsidiary                        |   |                | 25,950 |   |   |   | 25,155 |   |
| Other      Assets                                    |   |                | 191    |   |   |   | 187 |   |
|                                                 |   |                |   |   |   |   |   |   |
| Total      Assets                                    |   | $                   | 27,977 |   |   | $      | 27,812 |   |
|                                                 |   |                |   |   |   |   |   |   |
| Liabilities      and Stockholders' Equity            |   |                |   |   |   |   |   |   |
| Other      Liabilities                               |   | $                   | 103    |   |   | $      | - |   |
| Stockholders'      Equity                            |   |                | 27,874 |   |   |   | 27,812 |   |
|                                                 |   |                |   |   |   |   |   |   |
| Total      Liabilities and Stockholders' Equity      |   | $                   | 27,977 |   |   | $      | 27,812 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      22. |     Parent      Company Financial Statements(Continued) |
|---------------|-----------------------------------------------------------------------------|

|                                                |   | 2008                |   |   | 2007   |   |
|-----------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                                |   | (In      Thousands) |   |
| Equity      in Undistributed Earnings of Subsidiary |   | $                   | 587    |   |   | $      | 695 |   |
| Interest      Income                                |   |                | 55     |   |   |   | 94 |   |
|                                                |   |                |   |   |   |   |   |   |
| Total      Income                                   |   |                | 642    |   |   |   | 789 |   |
|                                                |   |                |   |   |   |   |   |   |
| Operating      Expenses                             |   |                | 186    |   |   |   | 182 |   |
| Conversion      and Merger Expense                  |   |                | 883    |   |   |   | - |   |
|                                                |   |                |   |   |   |   |   |   |
| Total      Expenses                                 |   |                | 1,069  |   |   |   | 182 |   |
|                                                |   |                |   |   |   |   |   |   |
| (Loss)      Income Before Income Tax Benefit        |   |                | (427   | )      |   |   | 607 |   |
| Income      Tax Benefit                             |   |                | (345   | )      |   |   | (30 | ) |
|                                                |   |                |   |   |   |   |   |   |
| Net      (Loss) Income                              |   | $                   | (82    | )      |   | $      | 637 |   |

----

| HOME FEDERAL BANCORP, INC. OF      LOUISIANA AND SUBSIDIARY |
|-------------------------------------------------------------|
|                                                        |
| Notes to the Consolidated      Financial Statements         |

| Note      22. |     Parent      Company Financial Statements(Continued) |
|---------------|-----------------------------------------------------------------------------|

|                                                                                          |   | 2008                |   |   | 2007   |   |
|-----------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                                                                          |   | (In      Thousands) |   |
| Operating      Activities                                                                     |   |                |   |   |   |   |
| Net      (Loss) Income                                                                        |   | $                   | (82    | )      |   | $      | 637 |   |
| Adjustments      to Reconcile Net (Loss) Income to Net Cash Used in Operating      Activities |   |                |   |   |   |   |   |   |
| Equity      in Undistributed Earnings of Subsidiary                                           |   |                | (587   | )      |   |   | (695 | ) |
| Increase      in Other Assets                                                                 |   |                | (4     | )      |   |   | (135 | ) |
| Deferred      Income Tax                                                                      |   |                | (301   | )      |   |   | - |   |
| Net      Amortization and Accretion on Investments                                            |   |                | -      |   |   |   | 8 |   |
| Increase      in Other Liabilities                                                            |   |                | 103    |   |   |   | - |   |
| Net      Cash Used in Operating Activities                                                    |   |                | (871   | )      |   |   | (185 | ) |
|                                                                                          |   |                |   |   |   |   |   |   |
| Investing      Activities                                                                     |   |                |   |   |   |   |   |   |
| Proceeds      from Investment Maturities                                                      |   |                | -      |   |   |   | 2,000 |   |
| Net      Cash Provided by Investing Activities                                                |   |                | -      |   |   |   | 2,000 |   |
|                                                                                          |   |                |   |   |   |   |   |   |
| Financing      Activities                                                                     |   |                |   |   |   |   |   |   |
| Paid-In      Capital                                                                          |   |                | 270    |   |   |   | 258 |   |
| Aquisition      of Treasury Stock                                                             |   |                | (38    | )      |   |   | (1,560 | ) |
| Dividends      Paid                                                                           |   |                | (296   | )      |   |   | (337 | ) |
| Net      Cash Used in Financing Activities                                                    |   |                | (64    | )      |   |   | (1,639 | ) |
|                                                                                          |   |                |   |   |   |   |   |   |
| (Decrease)      Increase in Cash and Cash Equivalents                                         |   |                | (935   | )      |   |   | 176 |   |
| Cash      and Cash Equivalents, Beginning of Year                                             |   |                | 2,470  |   |   |   | 2,294 |   |
|                                                                                          |   |                |   |   |   |   |   |   |
| Cash      and Cash Equivalents, End of Year                                                   |   | $                   | 1,535  |   |   | $      | 2,470 |   |

----

| MARKET PRICE OF      HOME FEDERAL BANCORP, INC. COMMON SHARES |
|---------------------------------------------------------------|
| AND      RELATED SHAREHOLDER MATTERS                          |

| Quarter      ended:     |   | High   |   |   | Low    |   |   | Cash      dividends per share |   |
|-------------------------|--------|--------|--------|--------|--------|--------|--------|-------------------------------|--------|
|                    |   |   |   |   |   |   |   |                          |   |
| Fiscal      2008        |   |   |   |   |   |   |   |                          |   |
| June      30, 2008      |   | $      | 9.17   |   |   | $      | 7.53   |                          |   | $ | 0.06 |   |
| March      31, 2008     |   |   | 9.51   |   |   |   | 7.95   |                          |   |   | 0.06 |   |
| December      31, 2007  |   |   | 10.30  |   |   |   | 9.03   |                          |   |   | 0.06 |   |
| September      30, 2007 |   |   | 10.43  |   |   |   | 9.60   |                          |   |   | 0.06 |   |
|                    |   |   |   |   |   |   |   |                          |   |   |   |   |
| Fiscal      2007        |   |   |   |   |   |   |   |                          |   |   |   |   |
| June      30, 2007      |   | $      | 10.60  |   |   | $      | 10.10  |                          |   | $ | 0.06 |   |
| March      31, 2007     |   |   | 10.35  |   |   |   | 10.25  |                          |   |   | 0.06 |   |
| December      31, 2006  |   |   | 10.48  |   |   |   | 10.00  |                          |   |   | 0.06 |   |
| September      30, 2006 |   |   | 10.50  |   |   |   | 10.10  |                          |   |   | 0.06 |   |

----

| DIRECTORS AND EXECUTIVE  OFFICERS |
|-----------------------------------|

| Directors                                                                                                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Daniel      R. HerndonChairman      of the Board, President andChief      Executive Officer                                                                                                                    | David      A. Herndon IIIDirector.  Retired      geologist |
|  Clyde      D. PattersonDirector.      Executive Vice President                                                                                                                                           |  Woodus      K. HumphreyDirector.  Insurance      executive, Woodus HumphreyInsurance,      Inc., Shreveport, Louisiana |
|                                                                                                                                                                                                           |   |
| Walter      T. Colquitt IIIDirector.      Dentist, Shrevport, Louisiana                                                                                                                                        | Scott      D. LawrenceDirector.  President      of Southwestern Wholesale, Shreveport, Louisiana |
|                                                                                                                                                                                                           |   |
| Mark      M. HarrisonDirector.  Co-owner      of House of Carpets and Lighting, Shreveport, Louisiana and      co-owner of Roly Poly sandwich franchises, Shreveport and West Monroe,      Louisiana | Amos      L. Wedgeworth Jr.Director.  Retired      physician |
|                                                                                                                                                                                                           |   |
| Henry      M. HearneDirector.  Self      employed in the fields of investments and farming                                                                                                           |   |
|                                                                                                                                                                                                           |   |
| Executive      Officer                                                                                                                                                                                    |
| DeNell      W. MitchellVice      President and Senior Lending Officer                                                                                                                                          |   |

| BANKING      LOCATIONS |
|------------------------|

| 6363      Youree Drive     | 8990      Mansfield Road   |
|----------------------------|----------------------------|
| Shreveport,      Louisiana | Shreveport,      Louisiana |

----