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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                                                                                                                                    | 3          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |
| Report of Independent Registered Public Accounting Firm                                                                                                                                                                             | 11         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |
| Consolidated Balance Sheets                                                                                                                                                                                                         | 12         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |
| Consolidated Statements of Operations                                                                                                                                                                                               | 13         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |
| Consolidated Statements of Comprehensive Income                                                                                                                                                                                     | 14         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |
| Consolidated Statements of Changes in Stockholders' Equity                                                                                                                                                                          | 15         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |
| Consolidated Statements of Cash Flows                                                                                                                                                                                               | 16         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |
| Notes to Consolidated Financial Statements                                                                                                                                                                                          | 18         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |
| Market Price of Home Federal Bancorp, Inc. Common Shares and Related  Shareholder Matters                                                                                                                                 | 54         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |
| Directors and Executive Officers                                                                                                                                                                                                    | 55         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |
| Banking and Office Locations                                                                                                                                                                                                        | 55         |

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|  PRESIDENT’S LETTER TO SHAREHOLDERS |
|------------------------------------------------|

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|  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:                                          |   | 2009                              |    |   | 2008 |   |
| Total assets                                                                |   | $                                 | 154,766 |   |   | $ | 137,715 |   |
| Cash and cash equivalents                                                   |   |                              | 10,007  |   |   |   | 7,363 |   |
| Securities available-for-sale                                               |   |                              | 92,647  |   |   |   | 96,324 |   |
| Securities held-to-maturity                                                 |   |                              | 2,184   |   |   |   | 1,688 |   |
| Loans held-for-sale                                                         |   |                              | 1,277   |   |   |   | 852 |   |
| Loans receivable, net                                                       |   |                              | 46,948  |   |   |   | 28,263 |   |
| Deposits                                                                    |   |                              | 86,146  |   |   |   | 78,359 |   |
| FHLB advances                                                               |   |                              | 35,997  |   |   |   | 26,876 |   |
| Total Stockholders' Equity                                                  |   |                              | 31,310  |   |   |   | 27,874 |   |
| Full service offices                                                        |   |                              | 4       |   |   |   | 3 |   |
|                                                                        |   |                              |    |   |   |   |   |   |
|                                                                        |   |                              |    |   |   |   |   |   |
| Selected Operating Data:                                                    |   |                              |    |   |   |   |   |   |
| Total interest income                                                       |   | $                                 | 7,596   |   |   | $ | 7,004 |   |
| Total interest expense                                                      |   |                              | 3,838   |   |   |   | 3,968 |   |
| Net interest income                                                         |   |                              | 3,758   |   |   |   | 3,036 |   |
| Provision for loan losses                                                   |   |                              | 240     |   |   |   | -- |   |
| Net interest income after provision for loan losses                         |   |                              | 3,518   |   |   |   | 3,036 |   |
| Total non-interest income                                                   |   |                              | 363     |   |   |   | 198 |   |
| Total non-interest expense                                                  |   |                              | (3,113  | ) |   |   | (3,359 | ) |
| Income (loss) before income taxes                                           |   |                              | 768     |   |   |   | (125 | ) |
| Income tax expense (benefit)                                                |   |                              | 253     |   |   |   | (43 | ) |
| Net income (loss)                                                           |   | $                                 | 515     |   |   | $ | (82 | ) |
|                                                                        |   |                              |    |   |   |   |   |   |
| Selected Operating Ratios(1):                                               |   |                              |    |   |   |   |   |   |
| Average yield on interest-earning assets                                    |   |                              | 5.21    | % |   |   | 5.39 | % |
| Average rate on interest-bearing liabilities                                |   |                              | 3.32    |   |   |   | 4.00 |   |
| Average interest rate spread(2)                                             |   |                              | 1.89    |   |   |   | 1.39 |   |
| Net interest margin(2)                                                      |   |                              | 2.58    |   |   |   | 2.33 |   |
| Average interest-earning assets to average interest-bearing liabilities     |   |                              | 126.37  |   |   |   | 131.06 |   |
| Net interest income after provision for loan losses to non-interest expense |   |                              | 113.01  |   |   |   | 90.38 |   |
| Total non-interest expense to average assets                                |   |                              | 2.09    |   |   |   | 2.52 |   |
| Efficiency ratio(3)                                                         |   |                              | 80.21   |   |   |   | 103.87 |   |
| Return on average assets                                                    |   |                              | .35     |   |   |   | (.06 | ) |
| Return on average equity                                                    |   |                              | 1.70    |   |   |   | (.25 | ) |
| Average equity to average assets                                            |   |                              | 20.35   |   |   |   | 24.83 |   |
|                                                                        |   |                              |    |   |   |   |   |   |
| Asset Quality Ratios(4):                                                    |   |                              |    |   |   |   |   |   |
| Non-performing loans as a percent of total loans receivable(5)              |   |                              | .72     | % |   |   | -- | % |
| Non-performing assets as a percent of total assets(5)                       |   |                              | .23     |   |   |   | .04 |   |
| Allowance for loan losses as a percent of total loans receivable            |   |                              | .97     |   |   |   | .82 |   |
| Net charge-offs to average loans receivable                                 |   |                              | .03     |   |   |   | -- |   |
|                                                                        |   |                              |    |   |   |   |   |   |
| Association Capital Ratios(4):                                              |   |                              |    |   |   |   |   |   |
| Tangible capital ratio                                                      |   |                              | 18.93   | % |   |   | 20.21 | % |
| Core capital ratio                                                          |   |                              | 18.93   |   |   |   | 20.21 |   |
| Total capital ratio                                                         |   |                              | 54.77   |   |   |   | 73.08 |   |

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

| (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-earning assets. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 loans receivable. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (5) | Non-performing assets consist of non-performing loans at June 30, 2009 and 2008.  Non-performing loans consist of non-accruing loans plus accruing loans 90 days or more past due.  Home Federal Bank did not have any troubled debt restructurings at June 30, 2009 or 2008.  Real estate owned at June 30, 2009 and 2008 amounted to $-0- and $52,000, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

----

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

----

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

|                                                                                                             |   |                   |   |   | Year Ended June 30, |   |
|------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|---------------------|--------|
|                                                                                                             |   |                   |   |   |                |   |   |  2009 |   |   |   |   |   |   |   |   |  2008 |   |   |   |   |
|                                                                                                             |   |  Yield/Rate       |   |   |  Average       |   |   |   |   |   |  Average |   |   |  Average |   |   |   |   |   |  Average |   |
|                                                                                                             |   |  at June 30, 2009 |   |   |  Balance       |   |   |  Interest |   |   | Yield/Rate |   |   |  Balance |   |   |  Interest |   |   | Yield/Rate |   |
|                                                                                                             |   |                   |   |   |                |   |   | (Dollars in Thousands) |   |   |   |   |   |   |
| Interest-earning assets:                                                                                         |   |                   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Investment securities                                                                                      |   |                   | 4.96   | %      |                | $      | 107,683 |   |   | $ | 5,333 |   |   |   | 4.95 | % |   | $ | 94,775 |   |   | $ | 4,780 |   |   |   | 5.04 | % |
|  Loans receivable                                                                                           |   |                   | 6.30   |   |                |   | 32,630 |   |   |   | 2,238 |   |   |   | 6.86 |   |   |   | 28,698 |   |   |   | 2,072 |   |   |   | 7.22 |   |
|  Interest-earning deposits                                                                                  |   |                   | .16    |   |                |   | 5,578 |   |   |   | 25 |   |   |   |  .45 |   |   |   | 6,564 |   |   |   | 152 |   |   |   | 2.32 |   |
|      Total interest-earning assets                                                      |   |                   | 5.13   | %      |                |   | 145,891 |   |   |   | 7,596 |   |   |   | 5.21 | % |   |   | 130,037 |   |   |   | 7,004 |   |   |   | 5.39 | % |
| Non-interest-earning assets                                                                                      |   |                   |   |   |                |   | 2,730 |   |   |   |   |   |   |   |   |   |   |   | 3,367 |   |   |   |   |   |   |   |   |   |
|      Total assets                                                                       |   |                   |   |   |                | $      | 148,621 |   |   |   |   |   |   |   |   |   |   | $ | 133,404 |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                    |   |                   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Savings accounts                                                                                     |   |                   | .42    | %      |                |   | 5,653 |   |   |   | 26 |   |   |   | .46 | % |   |   | 4,546 |   |   |   | 22 |   |   |   | .49 | % |
|   NOW accounts                                                                                         |   |                   | .19    |   |                |   | 7,896 |   |   |   | 21 |   |   |   | .27 |   |   |   | 7,176 |   |   |   | 16 |   |   |   | .22 |   |
|   Money market accounts                                                                                |   |                   | 1.42   |   |                |   | 4,268 |   |   |   | 38 |   |   |   | .89 |   |   |   | 2,999 |   |   |   | 12 |   |   |   | .40 |   |
|   Certificate accounts                                                                                 |   |                   | 3.43   |   |                |   | 61,780 |   |   |   | 2,378 |   |   |   | 3.85 |   |   |   | 63,893 |   |   |   | 2,985 |   |   |   | 4.67 |   |
|         Total deposits                                                   |   |                   | 2.71   |   |                |   | 79,597 |   |   |   | 2,463 |   |   |   | 3.09 |   |   |   | 78,614 |   |   |   | 3,035 |   |   |   | 3.86 |   |
| FHLB advances                                                                                                    |   |                   | 3.81   |   |                |   | 35,853 |   |   |   | 1,375 |   |   |   | 3.84 |   |   |   | 20,602 |   |   |   | 933 |   |   |   | 4.53 |   |
|      Total interest-bearing liabilities                                                 |   |                   | 3.10   | %      |                |   | 115,450 |   |   |   | 3,838 |   |   |   | 3.32 | % |   |   | 99,216 |   |   |   | 3,968 |   |   |   | 4.00 | % |
| Non-interest-bearing liabilities                                                                                 |   |                   |   |   |                |   | 2,927 |   |   |   |   |   |   |   |   |   |   |   | 1,058 |   |   |   |   |   |   |   |   |   |
|      Total liabilities                                                                  |   |                   |   |   |                |   | 118,377 |   |   |   |   |   |   |   |   |   |   |   | 100,274 |   |   |   |   |   |   |   |   |   |
| Total Stockholders' Equity(1)                                                                                    |   |                   |   |   |                |   | 30,244 |   |   |   |   |   |   |   |   |   |   |   | 33,130 |   |   |   |   |   |   |   |   |   |
|      Total liabilities and equity                                                       |   |                   |   |   |                | $      | 148,621 |   |   |   |   |   |   |   |   |   |   | $ | 133,404 |   |   |   |   |   |   |   |   |   |
|   Net interest-earning assets                                                                          |   |                   |   |   |                | $      | 30,441 |   |   |   |   |   |   |   |   |   |   | $ | 30,821 |   |   |   |   |   |   |   |   |   |
|   Net interest income; average     interest rate spread(2)                    |   |                   |   |   |                |   |   |   |   | $ | 3,758 |   |   |   | 1.89 | % |   |   |   |   |   | $ | 3,036 |   |   |   | 1.39 | % |
|   Net interest margin(3)                                                                               |   |                   |   |   |                |   |   |   |   |   |   |   |   |   | 2.58 | % |   |   |   |   |   |   |   |   |   |   | 2.33 | % |
|   Average interest-earning assets to     average interest-bearing liabilities |   |                   |   |   |                |   |   |   |   |   |   |   |   |   | 126.37 | % |   |   |   |   |   |   |   |   |   |   | 131.06 | % |

| (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 FINANCIALCONDITION AND RESULTS OF OPERATIONS |

|                                                        |   | 2009 vs. 2008             |       |   | 2008 vs. 2007            |   |
|-------------------------------------------------------------|--------|---------------------------|------------|--------|--------------------------|--------|
|                                                        |   | Increase (Decrease)Due to |       |   | Total Increase(Decrease) |   |   | Increase (Decrease)Due to |   |   | Total Increase(Decrease) |   |
|                                                        |   | Rate                      |       |   | Volume                   |   |   | Rate |   |   | Volume |   |
|                                                        |   | (In Thousands)            |       |
| Interest income:                                            |   |                      |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities                                       |   | $                         | (98        | )      |                     | $      | 651 |   |   | $ | 553 |   |   | $ | (203 | ) |   | $ | 433 |   |   | $ | 230 |   |
|    Loans receivable, net                     |   |                      | (118       | )      |                     |   | 284 |   |   |   | 166 |   |   |   | (35 | ) |   |   | 368 |   |   |   | 333 |   |
|    Interest-earning deposits                 |   |                      |  (104 | )      |                     |   | (23 | ) |   |   | (127 | ) |   |   | (199 | ) |   |   | 50 |   |   |   | (149 | ) |
| Total interest-earning assets                               |   |                      |  (320 | )      |                     |   | 912 |   |   |   | 592 |   |   |   | (437 | ) |   |   | 851 |   |   |   | 414 |   |
| Interest expense:                                           |   |                      |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                            |   |                      | (1         | )      |                     |   | 5 |   |   |   | 4 |   |   |   | - |   |   |   | (1 | ) |   |   | (1 | ) |
| NOW accounts                                                |   |                      | 3          |   |                     |   | 2 |   |   |   | 5 |   |   |   | 1 |   |   |   | - |   |   |   | 1 |   |
|    Money market accounts                     |   |                      | 21         |   |                     |   | 5 |   |   |   | 26 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Certificate accounts                      |   |                      |  (508 | )      |                     |   | (99 | ) |   |   | (607 | ) |   |   | 115 |   |   |   | 160 |   |   |   | 275 |   |
| Total deposits                                              |   |                      | (485       | )      |                     |   | (87 | ) |   |   | (572 | ) |   |   | 116 |   |   |   | 159 |   |   |   | 275 |   |
|    FHLB advances                             |   |                      |  (249 | )      |                     |   | 691 |   |   |   | 442 |   |   |   | (20 | ) |   |   | 265 |   |   |   | 245 |   |
| Total interest-bearing liabilities                          |   |                      |  (734 | )      |                     |   | 604 |   |   |   | (130 | ) |   |   | 96 |   |   |   | 424 |   |   |   | 520 |   |
| Increase (Decrease) in net interest   Income |   | $                         | 414        |   |                     | $      | 308 |   |   | $ | 722 |   |   | $ | (533 | ) |   | $ | 427 |   |   | $ | (106 | ) |

----

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

----

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

| Change inInterest Ratesin Basis Points      (Rate Shock)           |                Net Portfolio Value          | NPV as % of Portfolio      Valueof Assets                |
|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           Amount           |         $ Change                                                                         |        % Change                                                                                            |      NPV Ratio       |      Change       |
|                                                                                                                 | (Dollars in Thousands)                                                                                                                                         |
| 300                                                                                                                  |     $  23,789                                                                                                                         |      $  (8,674)                                                                                                           | (27.67)% | 16.35% |          (3.93)% |
| 200                                                                                                                  | 26,950                                                                                                                                                         |  (5,513)                                                                                                                                                | (16.98) | 17.90 |  (2.37) |
| 100                                                                                                                  | 29,988                                                                                                                                                         |  (2,475)                                                                                                                                                |   (7.62) | 19.28 |  (1.00) |
| Static                                                                                                               | 32,463                                                                                                                                                         |  -                                                                                                                                                      | - | 20.27 | - |
| (50)                                                                                                                 | 33,304                                                                                                                                                         |  841                                                                                                                                                    | 2.59 | 20.55 | .27 |
| (100)                                                                                                                | 33,577                                                                                                                                                         |  1,114                                                                                                                                                  | 3.43 | 20.55 | .27 |

----

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

----

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA |
|-----------------------------------------|
| AND SUBSIDIARY                          |   |   |   |
| Consolidated Balance Sheets             |   |   |   |
| June 30, 2009 and 2008                  |   |   |   |
|                                    |   |   |   |   |   |   |   |   |
|                                    |   |   |   |   |   |   |   |   |
|                                    |   |   |   |   |   | 2009 |   | 2008 |
|                                    |   |   |   |   |   |   | (In Thousands) |
| Assets                                  |   |   |   |
|                                    | Cash and Cash Equivalents (Includes Interest-Bearing |
|                                    |   | Deposits with Other Banks of $8,508 and |   |   |
|                                    |   | $4,957 for 2009 and 2008, Respectively) |  $         10,007 |   |  $      7,363 |
|                                    | Securities Available-for-Sale |             92,647 |   |        96,324 |
|                                    | Securities Held-to-Maturity |               2,184 |   |          1,688 |
|                                    | Loans Held-for-Sale |               1,277 |   |             852 |
|                                    | Loans Receivable, Net |             46,948 |   |        28,263 |
|                                    | Accrued Interest Receivable |                  543 |   |             550 |
|                                    | Premises and Equipment, Net |                  982 |   |             880 |
|                                    | Deferred Tax Asset |                     - |   |          1,691 |
|                                    | Foreclosed Real Estate |                     - |   |               52 |
|                                    | Other Assets |                  178 |   |               52 |
|                                    |   |   |   |   |   |   |   |   |
|                                    |   |   | Total Assets |  $       154,766 |   |  $  137,715 |
|                                    |   |   |   |   |   |   |   |   |
|                                    |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity    |   |   |   |
|                                    |   |   |   |   |   |   |   |   |
| Liabilities                             |   |   |   |
|                                    | Deposits |  $         86,146 |   |  $    78,359 |
|                                    | Advances from Borrowers for Taxes and Insurance |                  137 |   |             177 |
|                                    | Advances from Federal Home Loan Bank of Dallas |             35,997 |   |        26,876 |
|                                    | Stock Purchase Deposit Escrow |                     - |   |          3,575 |
|                                    | Other Accrued Expenses and Liabilities |               1,082 |   |             854 |
|                                    | Deferred Tax Liability |                    94 |   |                - |
|                                    |   |   |   |   |   |   |   |   |
|                                    |   |   | Total Liabilities |           123,456 |   |      109,841 |
|                                    |   |   |   |   |   |   |   |   |
| Stockholders' 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; 3,373,464 Shares Outstanding at |
|                                    |   | June 30, 2009 and 3,383,287 Shares Outstanding at June 30, 2008 |                    14 |   |               14 |
|                                    | Additional Paid-In Capital |             13,608 |   |        13,567 |
|                                    | Treasury Stock, at Cost - 185,494 Shares at June 30, 2009; |
|                                    |   | 175,671 Shares at June 30, 2008 |              (1,887) |   |         (1,809) |
|                                    | Unearned ESOP Stock |                 (883) |   |            (940) |
|                                    | Unearned RRP Trust Stock |                 (269) |   |            (395) |
|                                    | Retained Earnings |             20,288 |   |        20,071 |
|                                    | Accumulated Other Comprehensive Income (Loss) |                  439 |   |         (2,634) |
|                                    |   |   |   |   |   |   |   |   |
|                                    |   |   | Total Stockholders' Equity |             31,310 |   |        27,874 |
|                                    |   |   |   |   |   |   |   |   |
|                                    |   |   | Total Liabilities and Stockholders' Equity |  $       154,766 |   |  $  137,715 |
|                                    |   |   |   |   |   |   |   |   |

|                                                         |
|--------------------------------------------------------------|
| See accompanying notes to consolidated financial statements. |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA    |                                                            |                                                                                  |                                                                            |
|--------------------------------------------|-----------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| AND SUBSIDIARY                             |                                                            |                                                                                  |                                                                            |
| Consolidated Statements of Operations      |                                                            |                                                                                  |                                                                            |
| For the Years Ended June 30, 2009 and 2008 |                                                            |                                                                                  |                                                                            |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
|                                       |                                                            |                                                                                  |                                                                            |   |   | 2009 |   | 2008 |
|                                       |                                                            |                                                                                  |                                                                            |   | (In Thousands, Except Per Share Data) |   |   |   |
| Interest Income                            |                                                            |                                                                                  |                                                                            |
|                                       | Loans, Including Fees                                           |  $    2,238                                                  |                                                                            |  $    2,072 |
|                                       | Investment Securities                                           |           112                       |                                                                            |           243 |
|                                       | Mortgage-Backed Securities                                      |        5,221                                       |                                                                            |        4,537 |
|                                       | Other Interest-Earning Assets                                   |             25            |                                                                            |           152 |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
|                                       |                                                            |                                                                                  | Total Interest Income                                                           |        7,596 |   |        7,004 |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
| Interest Expense                           |                                                            |                                                                                  |                                                                            |
|                                       | Deposits                                                        |        2,463                                       |                                                                            |        3,035 |
|                                       | Federal Home Loan Bank Borrowings                               |        1,375                                       |                                                                            |           933 |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
|                                       |                                                            |                                                                                  | Total Interest Expense                                                          |        3,838 |   |        3,968 |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
|                                       |                                                            |                                                                                  | Net Interest Income                                                             |        3,758 |   |        3,036 |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
| Provision for Loan Losses                  |           240 |                                                                                  |              - |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
|                                       |                                                            |                                                                                  | Net Interest Income after                                                       |   |   |   |
|                                       |                                                            |                                                                                  |                                                                            | Provision for Loan Losses |        3,518 |   |        3,036 |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
| Non-Interest Income                        |                                                            |                                                                                  |                                                                            |
|                                       | Gain on Sale of Loans                                           |               2 |                                                                            |               6 |
|                                       | Gain on Sale of Securities                                      |           325                       |                                                                            |           149 |
|                                       | Other Income                                                    |             36            |                                                                            |             43 |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
|                                       |                                                            |                                                                                  | Total Non-Interest Income                                                       |           363 |   |           198 |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
| Non-Interest Expense                       |                                                            |                                                                                  |                                                                            |
|                                       | Compensation and Benefits                                       |        1,783                                       |                                                                            |        1,572 |
|                                       | Occupancy and Equipment                                         |           230                       |                                                                            |           168 |
|                                       | Franchise and Bank Shares Tax                                   |           150                       |                                                                            |           141 |
|                                       | Merger and Stock Issuance Costs                                 |           133                       |                                                                            |           883 |
|                                       | Legal Fees                                                      |           131                       |                                                                            |             74 |
|                                       | Audit and Examination Fees                                      |           122                       |                                                                            |           121 |
|                                       | Deposit Insurance Premiums                                      |             78            |                                                                            |               9 |
|                                       | Data Processing                                                 |             77            |                                                                            |             69 |
|                                       | Other Expense                                                   |           409                       |                                                                            |           322 |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
|                                       |                                                            |                                                                                  | Total Non-Interest Expense                                                      |        3,113 |   |        3,359 |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
|                                       |                                                            |                                                                                  | Income (Loss) Before Income Taxes                                               |           768 |   |          (125) |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
| Provision for Income Tax Expense (Benefit) |           253 |                                                                                  |            (43)          |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
| Net Income (Loss)                          |  $       515            |                                                                                  |  $        (82)                     |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |
| Earnings (Loss) Per Share                  |                                                            |                                                                                  |                                                                            |
|                                       | Basic                                                           |                                                                                  |                                                                            |  $      0.16 |   |  $     (0.03) |
|                                       | Diluted                                                         |                                                                                  |  $      0.16                                 |   |  $     (0.03) |
|                                       |                                                            |                                                                                  |                                                                            |   |   |   |   |   |

|                                                         |
|--------------------------------------------------------------|
| See accompanying notes to consolidated financial statements. |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA         |                                                         |                                                        |                                            |
|-------------------------------------------------|--------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------|
| AND SUBSIDIARY                                  |                                                         |                                                        |                                            |
| Consolidated Statements of Comprehensive Income |                                                         |                                                        |                                            |
| For the Years Ended June 30, 2009 and 2008      |                                                         |                                                        |                                            |
|                                            |                                                         |                                                        |                                            |   |   |   |   |   |
|                                            |                                                         |                                                        |                                            |   |   |   |   |   |
|                                            |                                                         |                                                        |                                            |   |   | 2009 |   | 2008 |
|                                            |                                                         |                                                        |                                            |   |   | (In Thousands) |
|                                            |                                                         |                                                        |                                            |   |   |   |   |   |
| Net Income (Loss)                               |  $       515         |                                                        |  $      (82) |
|                                            |                                                         |                                                        |                                            |   |   |   |   |   |
| Other Comprehensive Income, Net of Tax          |                                                         |                                                        |                                            |
|                                            | Unrealized Holding Gains Arising During the Period           |        3,480             |                                            |         425 |
|                                            | Reclassification Adjustment for Gains Included in Net Income |          (407) |                                            |        (218) |
|                                            |                                                         |                                                        |                                            |   |   |   |   |   |
|                                            |                                                         | Total Other Comprehensive Income                            |        3,073 |   |         207 |
|                                            |                                                         |                                                        |                                            |   |   |   |   |   |
|                                            |                                                         | Total Comprehensive Income                                  |  $    3,588            |   |  $     125 |
|                                            |                                                         |                                                        |                                            |   |   |   |   |   |

|                                                         |
|--------------------------------------------------------------|
| See accompanying notes to consolidated financial statements. |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA                    |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |
|------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| AND SUBSIDIARY                                             |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |
| Consolidated Statements of Changes in Stockholders' Equity |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |
| For the Years Ended June 30, 2009 and 2008                 |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                | Accumulated                                                                                                                                                         |                                                                                                                                                                |   |   |   |   |   |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    | Additional                                                                                                                                                                |                                                                                                                                                                      | Unearned                                                                                                                                                                                                            |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                | Other                                                                                                                                                               |                                                                                                                                                                | Unearned |   |   |   | Total |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  | Common                                                                                                                                                                                                  |                                                                                                                                                                                                    | Paid-in                                                                                                                                                                   |                                                                                                                                                                      | ESOP                                                                                                                                                                                                                |                                                                                                                                                                                          | Retained                                                                                                                                                            |                                                                                                                                                                | Comprehensive                                                                                                                                                       | RRP Trust                                                                                                                                                           |   | Treasury |   | Stockholders' |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  | Stock                                                                                                                                                                                                   |                                                                                                                                                                                                    | Capital                                                                                                                                                                   |                                                                                                                                                                      | Stock                                                                                                                                                                                                               |                                                                                                                                                                                          | Earnings                                                                                                                                                            |                                                                                                                                                                | Income (Loss)                                                                                                                                                       |                                                                                                                                                                | Stock |   | Stock |   | Equity |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      | (In Thousands)                                                                                                                                                                                                      |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |
| Balance - July 1, 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 |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |
| ESOP Compensation Earned                                   |                              - |                                                                                                                                                                            |                             (16)          |                                                                                                                                                                                  |                                57            |                                                                                                                                                                                                    |                             - |                                                                                                                                                                      |                                    - |                                                                                                                                                                                          |                            - |                                                                                                                                                                |                            - |                                                                                                                                                                |                               41 |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |
| Distribution of RRP Trust Stock                            |                              - |                                                                                                                                                                            |                               - |                                                                                                                                                                                  |                                  - |                                                                                                                                                                                                    |                             - |                                                                                                                                                                      |                                    - |                                                                                                                                                                                          |                         126                 |                                                                                                                                                                |                            - |                                                                                                                                                                |                            126 |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |
| Dividends Paid                                             |                              - |                                                                                                                                                                            |                               - |                                                                                                                                                                                  |                                  - |                                                                                                                                                                                                    |                       (298)                                 |                                                                                                                                                                      |                                    - |                                                                                                                                                                                          |                            - |                                                                                                                                                                |                            - |                                                                                                                                                                |                         (298) |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |
| Stock Options Vested                                       |                              - |                                                                                                                                                                            |                              57      |                                                                                                                                                                                  |                                  - |                                                                                                                                                                                                    |                             - |                                                                                                                                                                      |                                    - |                                                                                                                                                                                          |                            - |                                                                                                                                                                |                            - |                                                                                                                                                                |                              57 |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |
| Acquisition of Treasury Stock                              |                              - |                                                                                                                                                                            |                               - |                                                                                                                                                                                  |                                  - |                                                                                                                                                                                                    |                             - |                                                                                                                                                                      |                                    - |                                                                                                                                                                                          |                            - |                                                                                                                                                                |                        (78)                      |                                                                                                                                                                |                            (78) |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |
| Net Income                                                 |                              - |                                                                                                                                                                            |                               - |                                                                                                                                                                                  |                                  - |                                                                                                                                                                                                    |                          515                 |                                                                                                                                                                      |                                    - |                                                                                                                                                                                          |                            - |                                                                                                                                                                |                            - |                                                                                                                                                                |                            515 |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |
| Other Comprehensive Income, Net                            |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |
|                                                       | of Applicable Deferred Income Taxes                                                                                                                                             |                              - |                                                                                                                                                                                  |                               - |                                                                                                                                                                                                    |                                  - |                                                                                                                                                                      |                             - |                                                                                                                                                                                                                |                             3,073                 |                                                                                                                                                                |                            - |                                                                                                                                                                |                            - |   |                        3,073 |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |
| Balance - June 30, 2009                                    |  $                        14                       |                                                                                                                                                                            |  $                 13,608                                                                   |                                                                                                                                                                                  |  $                       (883)                                                  |                                                                                                                                                                                                    |  $              20,288                                                                         |                                                                                                                                                                      |  $                           439                                        |                                                                                                                                                                                          |  $                 (269)                                                  |                                                                                                                                                                |  $              (1,887)                                                                  |                                                                                                                                                                |  $                  31,310 |
|                                                       |                                                                                                                                                                            |                                                                                                                                                                            |                                                                                                                                                                                  |                                                                                                                                                                                  |                                                                                                                                                                                                    |                                                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                                                                |                                                                                                                                                                                          |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |                                                                                                                                                                |   |   |   |   |   |

|                                                         |
|--------------------------------------------------------------|
| See accompanying notes to consolidated financial statements. |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA    |                                                |                                                                                              |                                                                              |
|--------------------------------------------|-----------------------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| AND SUBSIDIARY                             |                                                |                                                                                              |                                                                              |
| Consolidated Statements of Cash Flows      |                                                |                                                                                              |                                                                              |
| For the Years Ended June 30, 2009 and 2008 |                                                |                                                                                              |                                                                              |
|                                       |                                                |                                                                                              |                                                                              |   |   |   |   |   |
|                                       |                                                |                                                                                              |                                                                              |   |   | 2009 |   | 2008 |
|                                       |                                                |                                                                                              |                                                                              |   |   | (In Thousands) |   |
| Cash Flows from Operating Activities       |                                                |                                                                                              |                                                                              |
|                                       | Net Income (Loss)                                   |  $          515                            |                                                                              |  $             (82) |
|                                       | Adjustments to Reconcile Net Income (Loss) to Net   |                                                                                              |                                                                              |   |
|                                       |                                                | Cash Provided by Operating Activities                                                             |                                                                              |   |   |
|                                       |                                                |                                                                                              | Net Amortization and Accretion on Securities                                      |             (290) |   |               (182) |
|                                       |                                                |                                                                                              | Amortization of Deferred Loan Fees                                                |               (18) |   |                 (20) |
|                                       |                                                |                                                                                              | Provision for Loan Losses                                                         |              240 |   |                   - |
|                                       |                                                |                                                                                              | Depreciation of Premises and Equipment                                            |                71 |   |                  55 |
|                                       |                                                |                                                                                              | Gain on Sale of Securities                                                        |             (325) |   |               (149) |
|                                       |                                                |                                                                                              | ESOP Compensation Expense                                                         |                41 |   |                  53 |
|                                       |                                                |                                                                                              | Deferred Income Tax (Benefit)                                                     |              203 |   |               (321) |
|                                       |                                                |                                                                                              | Stock Option Expense                                                              |                57 |   |                  62 |
|                                       |                                                |                                                                                              | Recognition and Retention Plan Expense                                            |              125 |   |                150 |
|                                       |                                                |                                                                                              | Changes in Assets and Liabilities:                                                |   |   |   |
|                                       |                                                |                                                                                              |                                                                              | Origination and Purchase of Loans Held-for-Sale |        (16,582) |   |          (12,985) |
|                                       |                                                |                                                                                              |                                                                              | Sale and Principal Repayments of Loans Held-for-Sale |         16,157 |   |           13,611 |
|                                       |                                                |                                                                                              |                                                                              | Accrued Interest Receivable |                  8 |   |                 (51) |
|                                       |                                                |                                                                                              |                                                                              | Other Operating Assets |             (125) |   |                  14 |
|                                       |                                                |                                                                                              |                                                                              | Other Operating Liabilities |              229 |   |                158 |
|                                       |                                                |                                                                                              |                                                                              |   |   |   |   |   |
|                                       |                                                |                                                                                              |                                                                              |   | Net Cash Provided by Operating Activities |              306 |   |                313 |
|                                       |                                                |                                                                                              |                                                                              |   |   |   |   |   |
| Cash Flows from Investing Activities       |                                                |                                                                                              |                                                                              |
|                                       | Loan Originations and Principal Collections, Net    |        (18,923)                                                |                                                                              |                330 |
|                                       | Purchases of Loans                                  |                 - |                                                                              |            (3,455) |
|                                       | Deferred Loan Fees Collected                        |                25      |                                                                              |                  42 |
|                                       | Acquisition of Premises and Equipment               |             (172)                     |                                                                              |                 (12) |
|                                       | Activity in Available-for-Sale Securities           |                                                                                              |                                                                              |   |
|                                       |                                                | Proceeds from Sales of Securities                                                                 |         19,373                            |   |           15,507 |
|                                       |                                                | Principal Payments on Mortgage-Backed Securities                                                  |         13,842                            |   |           11,582 |
|                                       |                                                | Purchases                                                                                         |        (24,269)                                |   |          (39,017) |
|                                       | Activity in Held-to-Maturity Securities             |                                                                                              |                                                                              |   |
|                                       |                                                | Principal Payments on Mortgage-Backed Securities                                                  |              114 |   |                138 |
|                                       |                                                | Purchases                                                                                         |             (610)     |   |               (416) |
|                                       | Proceeds From Disposition of Foreclosed Real Estate |                42      |                                                                              |                   - |
|                                       |                                                |                                                                                              |                                                                              |   |   |   |   |   |
|                                       |                                                |                                                                                              |                                                                              |   | Net Cash Used in Investing Activities |        (10,578) |   |          (15,301) |
|                                       |                                                |                                                                                              |                                                                              |   |   |   |   |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA           |
|---------------------------------------------------|
| AND SUBSIDIARY                                    |   |   |   |
| Consolidated Statements of Cash Flows (Continued) |
| For the Years Ended June 30, 2009 and 2008        |   |   |
|                                              |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   | 2009 |   | 2008 |
|                                              |   |   |   |   |   | (In Thousands) |
| Cash Flows from Financing Activities              |   |   |   |
|                                              | Net Increase in Deposits |            7,786 |   |               650 |
|                                              | Proceeds from Advances from Federal Home Loan Bank |          47,950 |   |          18,700 |
|                                              | Repayment of Advances from Federal Home Loan Bank |         (38,829) |   |           (4,192) |
|                                              | Dividends Paid |             (298) |   |             (296) |
|                                              | Acquisition of Treasury Stock |               (78) |   |               (38) |
|                                              | Net Decrease in Advances from Borrowers for |   |   |
|                                              |   | Taxes and Insurance |               (40) |   |               (20) |
|                                              | Stock Purchase Deposit Escrow |            4,556 |   |            3,575 |
|                                              | Stock Purchase Deposit Escrow Refunded |           (8,131) |   |                 - |
|                                              |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   | Net Cash Provided by Financing Activities |          12,916 |   |          18,379 |
|                                              |   |   |   |   |   |   |   |   |
| Net Increase in Cash and Cash Equivalents         |            2,644 |   |            3,391 |
|                                              |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Year      |            7,363 |   |            3,972 |
|                                              |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, End of Year            |  $      10,007 |   |  $        7,363 |
|                                              |   |   |   |   |   |   |   |   |
| Supplemental Cash Flow Information                |   |   |   |
|                                              | Interest Paid on Deposits and Borrowed Funds |  $        3,826 |   |  $        3,930 |
|                                              | Income Taxes Paid |                 89 |   |               252 |
|                                              | Market Value Adjustment for Gain on Securities |   |
|                                              |   | Available-for-Sale |            4,655 |   |               314 |
|                                              |   |   |   |   |   |   |   |   |
| Non-Cash Investing Activity                       |   |   |   |
|                                              | Loans Transferred to Foreclosed Real Estate |   |   |
|                                              |   | During the Year |                 - |   |                 52 |
|                                              |   |   |   |   |   |   |   |   |

----

----

|   | Nature of Operations |
|--------|----------------------|

|   | On January 18, 2005, Home Federal Bank (the Bank), formerly known as Home Federal Savings and Loan Association, completed its reorganization to the mutual holding company form of organization and formed Home Federal Bancorp, Inc. of Louisiana (the Company) to serve as the stock holding company for the Bank.  In connection with the reorganization, the Company sold 1,423,583 shares of its common stock ina subscription and community offering at a price of $10.00 per share.  The Company also issued 60% of its outstanding common stock in the reorganization to Home Federal Mutual Holding Company of Louisiana, or 2,135,375 shares. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Bank is subject to competition from other financial institutions, and is also subject to the regulations of certain Federal and State agencies and undergoes periodic examinations by those regulatory authorities. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Basis of Presentation and Consolidation |
|--------|-----------------------------------------|

|   | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Home Federal Bank.  All significant intercompany balances and transactions have been eliminated. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Use of Estimates |
|--------|------------------|

|   | In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting periods.  Actual results could differfrom those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses and deferred taxes. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Most of the Company’s activities are provided to customers of the Bank by four offices, all of which are located in the city of Shreveport, Louisiana.  The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   2009                                                         |   |  2008 |                                                  |               |
|---------------------------------------|--------------------------------------------------------------------------|--------|------------|-------------------------------------------------------|--------------------|
|                                  |  (In Thousands)                                                     |   |       |
| Cash on Hand                          |  $            406 |   |       |   $       314 |               |   |
| Demand Deposits at Other Institutions |  4,919                                                              |   |       | 4,214                                                 |     |   |
| Federal Funds Sold                    |  4,682                                                              |   |       |   2,835                                          |     |   |
|                                  |                                                                     |   |       |                                                  |               |   |
|    Total               | $      10,007                                   |   |       | $    7,363                             |               |   |

----

----

|   | Securities |
|--------|------------|

|   | Investments in debt securities and certain equity securities with readily determinable fair values are accounted for under SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities.  SFAS 115 requires investments to be classified within one of three categories, trading, held to maturity, or available for sale, based on the typeof security and management’s intent with regards to selling the security. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Trading account and available-for-sale securities are carried at fair value.  Unrealized holding gains and losses on trading securities are included in earnings while net unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income.  Purchase premiums and discounts are recognized in interest income using the interestmethod over the term of the securities.  Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of theCompany to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate.  Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Loans |
|--------|-------|

|   | Loans receivable are stated at unpaid principal balances, less allowances for loan losses and unamortized deferred loan fees.  Net non-refundable fees (loan origination fees, commitment fees, discount points) and costs associated with lending activities are being deferred and subsequently amortized into income as an adjustment of yield on the related interest earning assets using the interest method.  Interestincome on contractual loans receivable is recognized on the accrual method.  Unearned discounts are deferred and amortized on the interest method over the life of the loan. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings.  Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed.  Subsequent recoveries, if any, are credited to the allowance. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

|   | An allowance is also established for uncollectible interest on loans classified as substandard. Substandard loans are those which are in excess of ninety days delinquent.  The allowance is established by a charge to interest income equal to all interest previously accrued and income is subsequently recognized only to the extent that cash payments are received.  When, in management’s judgment,the borrower’s ability to make periodic interest and principal payments is back to normal, the loan is returned to accrual status. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | It should be understood that estimates of future loan losses involve an exercise of judgment.  While it is possible that in particular periods, the Company may sustain losses, which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses reflected in the accompanying statements of condition is adequate to absorb possible losses in theexisting loan portfolio. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Off-Balance Sheet Credit Related Financial Instruments |
|--------|--------------------------------------------------------|

|   | In the ordinary course of business, the Bank has entered into commitments to extend credit.  Such financial instruments are recorded when they are funded. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and are carried at the lower of cost or current fair value minus estimated cost to sell as of the date of foreclosure.  Cost is defined as the lower of the fair value of the property or the recorded investment in the loan.  Subsequent to foreclosure, valuations are periodically performed by management and the assets arecarried at the lower of carrying amount or fair value less cost to sell. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Premises and Equipment |
|--------|------------------------|

|   | Land is carried at cost.  Buildings and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets.  Estimated useful lives are as follows: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   Buildings and Improvements | 10 - 40 Years |
|-----------------------------------|---------------|

|   Furniture and Equipment | 3 - 10 Years |
|--------------------------------|--------------|

|   | Income Taxes |
|--------|--------------|

|   | The Company and its wholly-owned subsidiary file a consolidated Federal income tax return on a fiscal year basis.  Each entity will pay its pro-rata share of income taxes in accordance with a written tax-sharing agreement. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company accounts for income taxes on the asset and liability method.  Deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates.  A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized.  Realizationof deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years.  Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized.  Current taxes are measured by applying the provisions of enacted tax laws to taxable income to determine the amount of taxes receivable or payable. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | Income Taxes (Continued) |
|--------|--------------------------|

|   | In June 2006, the FASB issued FASB Interpretation 48, Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement 109, (FIN 48).  FIN 48 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements in accordance with SFAS No. 109, Accountingfor Income Taxes.  FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position or expected to be taken in a tax return.  FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  FIN 48 was adopted by the Company on July 1, 2008. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana Ad Valorem Tax, commonly referred to as the Louisiana Shares Tax, which is based on stockholders’ equity and net income. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Earnings per Share |
|--------|--------------------|

|   | Earnings per share are computed based upon the weighted average number of common shares outstanding during the year. |
|--------|----------------------------------------------------------------------------------------------------------------------|

|   | Non-Direct Response Advertising |
|--------|---------------------------------|

|   | The Company expenses all advertising costs, except for direct-response advertising, as incurred.  In the event the Company incurs expense for material direct-response advertising, it will be amortized over the estimated benefit period.  Direct-response advertising consists of advertising whose primary purpose is to elicit sales to customers who could be shown to have responded specifically tothe advertising and results in probable future benefits.  For the years ended June 30, 2009 and 2008, the Company did not incur any amount of direct-response advertising. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Stock-Based Compensation |
|--------|--------------------------|

|   | The Company utilizes SFAS No. 123R, Accounting for Stock-Based Compensation, to account for its stock-based compensation.  SFAS No. 123R requires all share-based payments to employees, including grants of employee stock options, to be recognized as expense in the statement of operations based on their fair values.  The amount of compensation is measured at the fair value of the options when granted,and this cost is expensed over the required service period, which is normally the vesting period of the options.  SFAS No. 123R applies to awards granted or modified after January 1, 2006, or any unvested awards outstanding prior to that date. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Comprehensive Income |
|--------|----------------------|

|   | Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income.  Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the Consolidated Balance Sheets, such items, along with net income, are components of comprehensive income. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The components of other comprehensive income and related tax effects are as follows: |
|--------|--------------------------------------------------------------------------------------|

|                                                      |   |   2009                                                                                                                                                                                  |   2008                                                                                                                                                                         |
|-----------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                      |   | (In Thousands)                                                                                                                                                                               |
| Unrealized Holding Gains on Available-for-Sale Securities |   | $                                5,271 | $                              644 |
| Reclassification Adjustment for Gains Realized in Income  |   | (616)                                                                                                                                                                                        | (330)                                                                                                                                                                               |
| Net Unrealized Gains                                      |   | 4,655                                                                                                                                                                                        | 314                                                                                                                                                                                 |
| Tax Effect                                                |   | (1,582)                                                                                                                                                                                      | (107)                                                                                                                                                                               |
| Net-of-Tax Amount                                         |   | $                                3,073 | $                              207 |
|                                                      |   |                                                                                                                                                                                         |                                                                                                                                                                                |

----

----

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

|   | Comprehensive Income (Continued) |
|--------|----------------------------------|

|   | The components of accumulated other comprehensive income (loss), included in Stockholders’ Equity, are as follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------|

|                                       |   |   2009                                                                                                                                                                                                            |   2008                                                                                                                                                     |
|--------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |   | (In Thousands)                                                                                                                                                                                                         |
| Net Unrealized Gain (Loss) on Securities   |   |                                                                            |                                                   |
|     Available-for-Sale |   | $                                   665 | $                          (3,991) |
| Tax Effect                                 |   | (226)                                                                                                                                                                                                                  | 1,357                                                                                                                                                           |
| Net-of-Tax Amount                          |   | $                                   439           | $                          (2,634) |
|                                       |   |                                                                                                                                                                                                                   |                                                                                                                                                            |

|   | Recent Accounting Pronouncements |
|--------|----------------------------------|

----

----

----

----

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

----

----

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

|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          | June 30, 2009                                                                                      |                                                                                                          |                                                                                              |
|------------------------------------|------------------------------|-------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          | Gross                                                                                              |                                                                                                          | Gross                                                                                             |   |   |
|                               |                         |                                                                    |                                                                                               | Amortized                                                                                         | Unrealized                                                                                                    | Unrealized                                                                                         | Fair                                                                                                          |
| Securities Available-for-Sale      | Cost                         |                                                                    | Gains                                                                                              |                                                                                              | Losses                                                                                                        |                                                                                               | Value                                                                                                         |
|                               |                         |                                                                    |                                                                                               | (In Thousands)                                                                                    |
| Debt Securities                    |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |
|                               | FHLMC Mortgage-Backed        |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |
|                               |                         | Certificates                                                            |  $      14,237                                                  |                                                                                              |  $           333                                  |                                                                                               |  $             10                       |                                                                                              |  $      14,560 |
|                               | FNMA Mortgage-Backed         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |
|                               |                         | Certificates                                                            |          75,194                                       |                                                                                              |            1,197                                       |                                                                                               |               166                       |                                                                                              |          76,225 |
|                               | GNMA Mortgage-Backed         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |
|                               |                         | Certificates                                                            |               136            |                                                                                              |                   1 |                                                                                               |                   2 |                                                                                              |               135 |
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |   |
|                               |                         |                                                                    | Total Debt Securities                                                                              |          89,567                                      |                                                                                                          |            1,531                            |                                                                                                          |               178           |   |          90,920 |
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |   |
| Equity Securities                  |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |
|                               | 244,550 Shares, AMF ARM Fund |            2,415 |                                                                                               |                 - |                                                                                                          |               688            |                                                                                                          |            1,727                           |
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |   |
|                               |                         |                                                                    | Total Securities Available-for-                                                                    |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |
|                               |                         |                                                                    |   Sale                                                                                   |  $      91,982                                                 |                                                                                                          |  $        1,531                                       |                                                                                                          |  $           866                      |   |  $      92,647 |
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |   |
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |   |
| Securities Held-to-Maturity        |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          | (In Thousands)                                                                                     |                                                                                                          |                                                                                              |
| Debt Securities                    |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |
|                               | GNMA Mortgage-Backed         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |
|                               |                         | Certificates                                                            |  $           260                       |                                                                                              |  $             10                       |                                                                                               |  $             -                        |                                                                                              |  $           270 |
|                               | FNMA Mortgage-Backed         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |
|                               |                         | Certificates                                                            |                 88 |                                                                                              |                   1 |                                                                                               |                 -             |                                                                                              |                 89 |
|                               | FHLMC Mortgage-Backed        |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |
|                               |                         | Certificates                                                            |                 30 |                                                                                              |                 -             |                                                                                               |                 -             |                                                                                              |                 30 |
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |   |
|                               |                         |                                                                    | Total Debt Securities                                                                              |               378           |                                                                                                          |                 11 |                                                                                                          |                 - |   |               389 |
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |   |
| Equity Securities (Non-Marketable) |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |
|                               | 18,064 Shares - Federal Home |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |
|                               |                         | Loan Bank                                                               |            1,806                            |                                                                                              |                 -             |                                                                                               |                 -             |                                                                                              |            1,806 |
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |   |
|                               |                         |                                                                    | Total Securities Held-to-                                                                          |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |
|                               |                         |                                                                    |   Maturity                                                                               |  $        2,184                                      |                                                                                                          |  $             11            |                                                                                                          |  $             -            |   |  $        2,195 |
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |   |

----

----

|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          | 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 |
|                               |                         |                                                                    |                                                                                               |                                                                                              |                                                                                                          |                                                                                               |                                                                                                          |                                                                                              |   |   |

----

----

|                         |                                                                                                                                                                                                                              | 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       |              -                                                                                                                                                   |                                                                                                                                                                            |              -                                                                                                                            |                                                                                                                                                |             33 |   |             33 |
| After Five through Ten Years |            751                                                                                                                                                             |                                                                                                                                                                            |            751                                                                                                                                      |                                                                                                                                                |            145 |   |            146 |
| Over Ten Years               |       88,816                                                                                                                                                                                        |                                                                                                                                                                            |       90,169                                                                                                                                                                 |                                                                                                                                                |            200 |   |            210 |
|                         |                                                                                                                                                                                                                              |                                                                                                                                                                            |                                                                                                                                                                                                       |                                                                                                                                                |   |   |   |   |   |
|                         | Total                                                                                                                                                                                                                             |  $                           89,567 |                                                                                                                                                                                                       |  $                        90,920 |   |  $                          378 |   |  $                       389 |
|                         |                                                                                                                                                                                                                              |                                                                                                                                                                            |                                                                                                                                                                                                       |                                                                                                                                                |   |   |   |   |   |

|   | Information pertaining to securities with gross unrealized losses at June 30, 2009 and 2008, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          |                                             |                                                                        |   June 30, 2009                                                                  |
|-------------------------------|--------------------------------------------------|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                          |                                             |                                                                        |                                                                                  |   |   |   |   |   |   |
|                          |                                             |                                                                        |  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                       |  $           10 |                                                                                  |  $      864 |   |  $         168 |   |  $  23,801 |
| Marketable Equity             |                                             |                                                                        |                                                                                  |   |   |   |   |   |
|                          | Securities                                       |                                                                        |               - |   |            - |   |             688 |   |        1,727 |
|                          |                                             |                                                                        |                                                                                  |   |   |   |   |   |   |
|                          |    Total Securities               |                                                                        |                                                                                  |   |   |   |   |   |   |
|                          |      Available-for-Sale |                                                                        |  $           10           |   |  $      864 |   |  $         856 |   |  $  25,528 |
|                          |                                             |                                                                        |                                                                                  |   |   |   |   |   |   |

----

----

|                          |                                             |                                                                      |                                                                                  | 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 |
|                          |                                             |                                                                      |                                                                                  |                      |                                                                |                                                          |   |   |   |

----

----

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

|                                                  |                                                                                                      |                                                                                |                                                                                                          |                                                                                      | 2009                                                                                                          |                                                                          | 2008                                                                                      |
|-------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|
|                                                  |                                                                                                      |                                                                                |                                                                                                          |                                                                                      | (In Thousands)                                                                                                |
|                                                  |                                                                                                      |                                                                                |                                                                                                          |                                                                                      |                                                                                                          |                                                                          |                                                                                      |
| Loans Secured by Mortgages on Real Estate             |                                                                                                      |                                                                                |                                                                                                          |
|                                                  |                                                                                                      | Secured by One-to-Four Family Residences                                            |  $      22,106                                                             |                                                                                      |  $       18,736                                                       |
|                                                  |                                                                                                      | Commercial - Real Estate Secured                                                    |            8,193                                       |                                                                                      |                   - |
|                                                  |                                                                                                      | Secured by Other Properties                                                         |            4,884                                       |                                                                                      |             4,945                                 |
|                                                  |                                                                                                      |                                                                                | Total Mortgage Loans                                                                                          |          35,183                              |                                                                                                          |           23,681            |
| Commercial Loans                                      |            6,590                                   |                                                                                |                   - |
| Consumer Loans                                        |                                                                                                      |                                                                                |                                                                                                          |
|                                                  |                                                                                                      | Equity and Second Mortgage                                                          |            4,914                                       |                                                                                      |             3,848                                 |
|                                                  |                                                                                                      | Loans on Savings Accounts                                                           |               359                       |                                                                                      |                573                 |
|                                                  |                                                                                                      | Equity Lines of Credit                                                              |               451                       |                                                                                      |                461                 |
|                                                  |                                                                                                      | Automobile Loans                                                                    |                 40            |                                                                                      |                  51      |
|                                                  |                                                                                                      |                                                                                | Total Consumer and Other Loans                                                                                |            5,764                   |                                                                                                          |             4,933 |
|                                                  |                                                                                                      |                                                                                | Total Loans                                                                                                   |          47,537                              |                                                                                                          |           28,614            |
|                                                  |                                                                                                      |                                                                                |                                                                                                          |                                                                                      |                                                                                                          |                                                                          |                                                                                      |
| Less:                                                 | Allowance for Loan Losses                                                                                 |              (466) |                                                                                                          |               (235) |
|                                                  |                                                                                                      |                                                                                |                                                                                                          | Unamortized Loan Fees                                                                     |              (123)                           |                                                                          |               (116) |
|                                                  |                                                                                                      |                                                                                | Net Loans Receivable                                                                                          |  $      46,948                                         |                                                                                                          |  $       28,263                       |
|                                                  |                                                                                                      |                                                                                |                                                                                                          |                                                                                      |                                                                                                          |                                                                          |                                                                                      |
|                                                  |                                                                                                      |                                                                                |                                                                                                          |                                                                                      |                                                                                                          |                                                                          |                                                                                      |
| An analysis of the allowance for loan losses follows: |                                                                                                      |                                                                                |                                                                                                          |
|                                                  |                                                                                                      |                                                                                |                                                                                                          |                                                                                      |                                                                                                          |                                                                          |                                                                                      |
|                                                  |                                                                                                      |                                                                                |                                                                                                          |                                                                                      | 2009                                                                                                          |                                                                          | 2008                                                                                      |
|                                                  |                                                                                                      |                                                                                |                                                                                                          |                                                                                      | (In Thousands)                                                                                                |
|                                                  |                                                                                                      |                                                                                |                                                                                                          |                                                                                      |                                                                                                          |                                                                          |                                                                                      |
| Balance - Beginning of Year                           |  $           235                              |                                                                                |  $            235                            |
| Provision for Loan Losses                             |               240                   |                                                                                |                   - |
| Loan Charge-Offs                                      |                  (9) |                                                                                |                   - |
| Balance - End of Year                                 |  $           466                              |                                                                                |  $            235                            |
|                                                  |                                                                                                      |                                                                                |                                                                                                          |                                                                                      |                                                                                                          |                                                                          |                                                                                      |

----

----

|   | Fixed rate loans receivable as of June 30, 2009, are scheduled to mature and adjustable rate loans are scheduled to re-price as follows: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|                               |                                            |                                                  |                                                            |                                                                            | Under                                                                                 | One                                                                             | Six                                                                             | Over                                            |   |
|------------------------------------|-------------------------------------------------|-------------------------------------------------------|-----------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|-------------------------------------------------|--------|
|                               |                                            |                                                  |                                                            |                                                                            | One                                                                                   | to Five                                                                         | to Ten                                                                          | Ten                                             |   |
|                               |                                            |                                                  |                                                            |                                                                            | Year                                                                                  | Years                                                                           | Years                                                                           | Years                                           | Total  |
| Loans Secured by One-to-Four       |                                            |                                                  |                                                            |                                                                            |                                                                                  |
|                               | Family Residential                              |                                                  |                                                            |                                                                            |                                                                                  |                                                                            |
|                               |                                            |                                                  | Fixed Rate                                                      |  $       234                            |  $     6,023                                            |  $       400                            |  $    6,040                                            |  $  12,697                       |
|                               |                                            |                                                  | Adjustable Rate                                                 |        9,409                                 |               - |              - |              - |        9,409 |
| Other Loans Secured by Real Estate |                                            |                                                  |                                                            |                                                                            |                                                                                  |
|                               |                                            |                                                  | Fixed Rate                                                      |              - |         9,633                                 |        1,221                                 |        4,884                                 |      15,738            |
| All Other Loans                    |        4,543 |         2,381 |           955 |        1,815                                 |        9,694                                       |
|                               |                                            |                                                  |                                                            |                                                                            |                                                                                  |                                                                            |                                                                            |                                            |   |
|                               |                                            |                                                  | Total                                                           |  $  14,186                                                       |  $   18,037                                                       |  $    2,576                                            |  $  12,739                                                       |  $  47,538                       |
|                               |                                            |                                                  |                                                            |                                                                            |                                                                                  |                                                                            |                                                                            |                                            |   |

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

|                                               |   |   2009                                                                                                                                                                               |   2008                                                                                                                                                                                     |
|----------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                               |   | (In Thousands)                                                                                                                                                                            |
| Accrued Interest on:                               |   |                                          |                                                                                   |
|     Mortgage Loans             |   | $                              156       | $                               128       |
|     Other Loans                |   | 26                                                                                                                                                                                        | 19                                                                                                                                                                                              |
|     Investments                |   | 1                                                                                                                                                                                         | 8                                                                                                                                                                                               |
|     Mortgage-Backed Securities |   | 360                                                                                                                                                                                       | 395                                                                                                                                                                                             |
|  Total                                        |   |  $                              543 |  $                               550 |
|                                               |   |                                                                                                                                                                                      |                                                                                                                                                                                            |

----

----

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

|   |                     |   | 2009                                                                                                                    |   | 2008                                                                                      |
|--------|--------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|
|   |                     |   | (In Thousands)                                                                                                          |
|   |                     |   |                                                                                                                    |   |                                                                                      |
|   | Land                     |   | $                    727 |   | $               727 |
|   | Buildings                |   | 1,183                                                                                                                   |   | 1,134                                                                                     |
|   | Equipment                |   | 725                                                                                                                     |   | 601                                                                                       |
|   |                     |   | 2,635                                                                                                                   |   | 2,462                                                                                     |
|   | Accumulated Depreciation |   | (1,653)                                                                                                                 |   | (1,582)                                                                                   |
|   |                     |   |                                                                                                                    |   |                                                                                      |
|   | Total                    |   | $                    982      |   | $               880 |

|   | The Bank leases property for two branch facilities. The Youree Branch lease, which expires November 30, 2018, requires monthly rental payments of $2,171.  This lease has three ten-year option periods remaining with rental adjustment provisions.  The Bellmead Branch lease has a term of five years ending on April30, 2014, however, the Bank has a one-time option to terminate this lease after thirty-six months.  Monthly rental payments during the initial thirty-six months are $3,443.  Total rent expense paid under the terms of these two leases for the years ended June 30, 2009 and 2008, amounted to $34,000 and $20,000, respectively.  Future minimum rental payments resulting from the non-cancelable term of these leases are as follows: |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Year Ended                   |   |                                                                                         |   |
|--------|------------------------------|--------|----------------------------------------------------------------------------------------------|--------|
|   | June 30,                     |   | Amount                                                                                       |   |
|   |                         |   |                                                                                         |   |
|   | 2010                         |   | $               67,756 |   |
|   | 2011                         |   | 67,756                                                                                       |   |
|   | 2012                         |   | 60,869                                                                                       |   |
|   | 2013                         |   | 26,436                                                                                       |   |
|   | 2014                         |   | 26,436                                                                                       |   |
|   | Thereafter                   |   | 116,759                                                                                      |   |
|   |                         |   |                                                                                         |   |
|   | Total Minimum Future         |   | $             366,012            |   |
|   |    Rental Payments |   |                                                                                         |   |

----

----

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

|                    |   |   |                                                              |                                                                 |                                              |                                                         |         |                                                              |   |                                              |                                                         |         |                    |   |
|-------------------------|--------|--------|-------------------------------------------------------------------|----------------------------------------------------------------------|---------------------------------------------------|--------------------------------------------------------------|--------------|-------------------------------------------------------------------|--------|---------------------------------------------------|--------------------------------------------------------------|--------------|-------------------------|--------|
|                    |   |   |                                                              |          Weighted       |                                              |                                                         |         |                                                              |   |                                              |                                                         |         |
|                    |   |   |                                                              |           Average  |                                              |                                                         |         |                                                              |   |                                              |                                                         |         |
|                    |   |   |                                                              |            Rate at | 2009                                              |                                                         |         | 2008                                                              |   |
|                    |   |   |                                                              | 6/30/2009                                                            |                                              | Amount                                                       |         | Percent                                                           | Amount |                                              | Percent                                                      |
|                    |   |   |                                                              |                                                                 |                                              | (Dollars in Thousands)                                       |         |
| Non-Interest Bearing    | 0.00%  |   |  $        2,222      |                                                                 |      2.58                | %                                                            |         |  $        1,679      |   |      2.14                | %                                                            |
| NOW Accounts            | 0.19%  |   |           6,315 |                                                                 |      7.33                |                                                         |         |           6,854 |   |      8.75                |                                                         |
| Money Market            | 1.40%  |   |           8,752 |                                                                 |    10.16                           |                                                         |         |           2,882 |   |      3.68                |                                                         |
| Passbook Savings        | 0.50%  |   |           6,056 |                                                                 |      7.03                |                                                         |         |           4,836 |   |      6.17                |                                                         |
|                    |   |   |                                                              |                                                                 |                                              |                                                         |         |                                                              |   |                                              |                                                         |         |                    |   |
|                    |   |   |                                                              |                                                                 |                                              |          23,345 |         |    27.10                                           |   |                                              |          16,251 |         |    20.74 |   |
| Certificates of Deposit | 3.43%  |   |          62,801      |                                                                 |    72.90                           |                                                         |         |          62,108      |   |    79.26                           |                                                         |
|                    |   |   |                                                              |                                                                 |                                              |                                                         |         |                                                              |   |                                              |                                                         |         |                    |   |
|                    |   |   | Total Deposits                                                    |                                                                 |  $      86,146 |                                                         |  100.00 | %                                                                 |   |  $      78,359 |                                                         |  100.00 | %                       |
|                    |   |   |                                                              |                                                                 |                                              |                                                         |         |                                                              |   |                                              |                                                         |         |                    | `      |
|   |   |           |           |                                                                   |                                              |                               |         |    |                                                                                         |                                              |                               |         |   |   |
|--------|--------|----------------|----------------|------------------------------------------------------------------------|---------------------------------------------------|------------------------------------|--------------|---------|----------------------------------------------------------------------------------------------|---------------------------------------------------|------------------------------------|--------------|--------|--------|
|   |   |           |           |                                                                   |                                              |                               |         |    |                                                                                         |                                              |                               |         |   |   |
|   |   |           |           |                                                                   |                                              | 2009                               |         |    | 2008                                                                                         |                                              |
|   |   |           |           |                                                                   |                                              | Amount                             |         | Percent |                                                                                         | Amount                                            |                               | Percent      |
|   |   |           |           |                                                                   |                                              | (Dollars in Thousands)             |         |
|   |   | 0.00% to 0.99% |           |  $          134 |                                              |      0.21 | %            |    |  $              9 |                                              |      0.01 | %            |
|   |   | 1.00% to 1.99% |           |          11,970           |                                              |    19.06            |         |    |              127            |                                              |      0.20 |         |
|   |   | 2.00% to 2.99% |           |          13,030           |                                              |    20.75            |         |    |           9,074                            |                                              |    14.61            |         |
|   |   | 3.00% to 3.99% |           |          21,405           |                                              |    34.09            |         |    |          12,840                                 |                                              |    20.67            |         |
|   |   | 4.00% to 4.99% |           |          12,990           |                                              |    20.68            |         |    |          24,724                                 |                                              |    39.82            |         |
|   |   | 5.00% to 5.99% |           |           3,272      |                                              |      5.21 |         |    |          15,334                                 |                                              |    24.69            |         |
|   |   |           |           |                                                                   |                                              |                               |         |    |                                                                                         |                                              |                               |         |   |   |
|   |   |           | Total Deposits |                                                                   |  $      62,801 |                               |  100.00 | %       |                                                                                         |  $      62,108 |                               |  100.00 | %      |
|   |   |           |           |                                                                   |                                              |                               |         |    |                                                                                         |                                              |                               |         |   |   |

----

----

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

|   | Maturities of Certificates of Deposit accounts at June 30, 2009, are scheduled as follows: |
|--------|--------------------------------------------------------------------------------------------|

|                       |                          |                                                                          |    |                                                       |   |    | Weighted |
|----------------------------|-------------------------------|-------------------------------------------------------------------------------|---------|------------------------------------------------------------|--------|---------|----------|
| Year Ending                |                          |                                                                          |    |                                                       |   | Average |
|    June 30, | Amount                        |                                                                          | Percent |                                                       |   | Rate    |
|                       |                          | (Dollars in Thousands)                                                        |    |
|                       | 2010                          |  $        43,360                 |    |        69.04            | %      |    | 3.2%     |
|                       | 2011                          |             9,367 |    |        14.92            |   |    | 3.8%     |
|                       | 2012                          |             5,421 |    |          8.63 |   |    | 4.5%     |
|                       | 2013                          |             2,022 |    |          3.22 |   |    | 4.7%     |
|                       | 2014                          |             2,631 |    |          4.19 |   |    | 3.6%     |
|                       |                          |                                                                          |    |                                                       |   |    |     |
|                       |     Total |  $        62,801                 |    | 100%                                                       |   |    |     |
|                       |                          |                                                                          |    |                                                       |   |    |     |

|   |                    |   | 2009                                                                                                                                                      |   | 2008                                                                                                             |
|--------|-------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|
|   |                    |   | (In Thousands)                                                                                                                                            |
|   |                    |   |                                                                                                                                                      |   |                                                                                                             |
|   | NOW and Money Market    |   | $                         59 |   | $                   28 |
|   | Passbook Savings        |   | 26                                                                                                                                                        |   | 22                                                                                                               |
|   | Certificates of Deposit |   | 2,378                                                                                                                                                     |   | 2,985                                                                                                            |
|   |                    |   |                                                                                                                                                      |   |                                                                                                             |
|   | Total                   |   | $                    2,463                            |   | $              3,035                       |

----

----

|   | Advances at June 30, 2009 and 2008, consisted of the following: |
|--------|-----------------------------------------------------------------|

|   |           |   | Advance Total                                                                                                                                                                                                                                     |
|--------|----------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |           |   | 2009                                                                                                                                                                                                                                              | 2008 |
|   |           |   | (In Thousands)                                                                                                                                                                                                                                    |
|   |           |   |                                                                                                                                                                                                                                              |
|   | 1.00% to 1.99% |   | $                                        2,000 | $                                -    |
|   | 2.00% to 2.99% |   | 5,462                                                                                                                                                                                                                                             | 6,876 |
|   | 3.00% to 3.99% |   | 12,468                                                                                                                                                                                                                                            | 2,245 |
|   | 4.00% to 4.99% |   | 9,654                                                                                                                                                                                                                                             | 7,179 |
|   | 5.00% to 5.99% |   | 6,413                                                                                                                                                                                                                                             | 10,576 |
|   |           |   |                                                                                                                                                                                                                                              |   |
|   | Total          |   | $                                     35,997                  | $                         26,876 |

|   | Maturities of advances at June 30, 2009 are as follows for the year ended June 30th (In Thousands): |
|--------|-----------------------------------------------------------------------------------------------------|

|   | Year Ended |   |                                                                                             |   |
|--------|------------|--------|--------------------------------------------------------------------------------------------------|--------|
|   | June 30,   |   | Amount                                                                                           |   |
|   |       |   |                                                                                             |   |
|   | 2010       |   | $               9,990 |   |
|   | 2011       |   | 8,116                                                                                            |   |
|   | 2012       |   | 7,422                                                                                            |   |
|   | 2013       |   | 5,907                                                                                            |   |
|   | 2014       |   | 1,915                                                                                            |   |
|   | Thereafter |   | 2,647                                                                                            |   |
|   |       |   |                                                                                             |   |
|   | Total      |   | $              35,997      |   |

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

|   | Employment Contracts |
|--------|----------------------|

----

----

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

|                                                   |   | 2009                                                                                                                                                                                                                                                                                                                                    |   | 2008                                                                                                                                                                                                                                                                                           |
|--------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                   |   |   (In Thousands)                                                                                                                                                                                                                                                                                                                   |
|                                                   |   |                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                           |
| Federal                                                |   |                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                           |
|      Current                       |   | $                                                      50 |   | $                                               278 |
|      Deferred (Benefit)            |   | 203                                                                                                                                                                                                                                                                                                                                     |   | (321)                                                                                                                                                                                                                                                                                          |
| State                                                  |   |                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                           |
|      Current                       |   | -                                                                                                                                                                                                                                                                                                                                       |   | -                                                                                                                                                                                                                                                                                              |
|                                                   |   |                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                           |
|          Total |   | $                                                    253                      |   | $                                              (43)           |

|   | The effective federal income tax rate for the years ended June 30, 2009 and 2008 was 32.75% and 33.93%, respectively.  Reconciliations of income tax expense (benefit) at the statutory rate to the Company’s effective rates are as follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       |   | 2009                                                                                                                                                                                                                                                                                                                         |   | 2008                                                                                                                                                                                                                                                                                      |
|--------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |   |   (In Thousands)                                                                                                                                                                                                                                                                                                        |
|                                       |   |                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                      |
| Computed at Expected Statutory Rate        |   | $                                                    261 |   |  $                                             (42) |
| Other                                      |   | (8)                                                                                                                                                                                                                                                                                                                          |   | (1)                                                                                                                                                                                                                                                                                       |
|                        |   |                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                      |
| Provision for Income Tax Expense (Benefit) |   | $                                                    253           |   |  $                                             (43)      |

|   | At June 30, 2009 and 2008, temporary differences between the financial statement carrying amount and tax bases of assets that gave rise to deferred tax recognition were related to the effect of loan bad debt deduction differences for tax and book purposes and deferred stock option compensation.  The deferred tax expense or benefit related to securities available-for-sale has no effect on the Bank's incometax provision since it is charged or credited to the Bank’s other comprehensive income or loss equity component. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                  |   | 2009                                                                                                                                                                                                                                                                                                                                    |   | 2008                                                                                                                                                                                                                                                                                          |
|---------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                  |   |   (In Thousands)                                                                                                                                                                                                                                                                                                                   |
|                                                                                  |   |                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                          |
| Deferred Tax Asset or Liability                                                       |   |                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                          |
|      Stock Option Compensation                                    |   | $                                                      80 |   | $                                               61 |
|      Loans Receivable - Bad Debt Loss Allowances             |   | 52                                                                                                                                                                                                                                                                                                                                      |   | (27)                                                                                                                                                                                                                                                                                          |
|      Securities Available-for-Sale Unrealized Gain or Loss        |   |   (226)                                                                                                                                                                                                                                                                                                                            |   |   1,357                                                                                                                                                                                                                                                                                  |
|      Conversion and Merger Expense                                |   | -                                                                                                                                                                                                                                                                                                                                       |   | 300                                                                                                                                                                                                                                                                                           |
|                                                                                  |   |                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                          |
|          Total Deferred Tax (Liability) Asset |   | $                                                    (94)                     |   | $                                          1,691                            |

----

----

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

|                                       |   | 2009                  | 2008                  |
|--------------------------------------------|--------|-----------------------|-----------------------|
|                                       |   | (In Thousands)        |
|                                       |   |                  |                  |
| Other Non-Interest Income                  |   |                  |                  |
| Commissions and Other                      |   | $   18 | $   16 |
| Services Fees on NOW Accounts              |   | 14                    | 22                    |
| Late Charges                               |   | 4                     | 5                     |
|                                       |   |                  |                  |
| Total Other Non-Interest Income            |   | $   36 | $   43 |
|                                       |   |                  |                  |
| Other Non-Interest Expense                 |   |                  |                  |
| NOW Account Expense                        |   | $   75 | $   59 |
| Miscellaneous                              |   | 63                    | 71                    |
| Telephone                                  |   | 48                    | 37                    |
| Office Supplies                            |   | 42                    | 26                    |
| Advertising                                |   | 35                    | -                     |
| Business Insurance and Bonds               |   | 34                    | 34                    |
| Automobile Expense, Including Depreciation |   | 32                    | 21                    |
| Consulting Fees                            |   | 27                    | 30                    |
| Postage                                    |   | 23                    | 18                    |
| Registration Fees                          |   | 11                    | 9                     |
| Organization Dues and Publications         |   | 10                    | 8                     |
| Loan Expenses                              |   | 6                     | 6                     |
| Charitable Contributions                   |   | 3                     | 3                     |
|                                       |   |                  |                  |
| Total Other Non-Interest Expenses          |   | $  409      | $  322      |

----

----

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

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

|   | The ESOP purchased the statutory limit of eight percent of the shares sold in the initial public offering of the Company, excluding shares issued to Home Federal Mutual Holding Company of Louisiana (113,887 shares).  This purchase was facilitated by a loan from the Company to the ESOP in the amount of $1.1 million.  The loan is secured by a pledge of the ESOP shares.  The shares pledgedas collateral are reported as unearned ESOP shares in the Consolidated Balance Sheets.  The corresponding note is being repaid in 80 quarterly debt service payments of $23,000 on the last business day of each quarter, beginning March 31, 2005, at the rate of 5.25%. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company may contribute to the ESOP, in the form of debt service, at the discretion of its board of directors.  Cash dividends on the Company’s stock shall be used to either repay the loan, be distributed to the participants in the ESOP, or retained in the ESOP and reinvested in Company stock.  Sharesare released for allocation to ESOP participants based on principal and interest payments of the note.  Compensation expense is recognized based on the number of shares allocated to ESOP participants each year and the average market price of the stock for the current year.  Released ESOP shares become outstanding for earnings per share computations. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As compensation expense is incurred, the Unearned ESOP Shares account is reduced based on the original cost of the stock.  The difference between the cost and the average market price of shares released for allocation is applied to Additional Paid-In Capital.  ESOP compensation expense for the years ended June 30, 2009 and 2008, was $41,000 and $53,000, respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The ESOP shares as of June 30, 2009, are as follows: |
|--------|------------------------------------------------------|

|   | Allocated Shares                               |   | 19,930                                                                                                                                                                                          |
|--------|------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Shares Released for Allocation                 |   | 2,847                                                                                                                                                                                           |
|   | Unreleased Shares                              |   | 91,110                                                                                                                                                                                          |
|   |                                           |   |                                                                                                                                                                                            |
|   | Total ESOP Shares                              |   | 113,887                                                                                                                                                                                         |
|   |                                           |   |                                                                                                                                                                                            |
|   | Fair Value of Unreleased Shares (In Thousands) |   | $                                615 |
|   |                                           |   |                                                                                                                                                                                            |
|   | Stock Price at June 30, 2009                   |   | $                               6.75      |
|   |                                           |   |                                                                                                                                                                                            |

----

----

|   | On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Recognition and Retention Plan and Trust Agreement (the Recognition Plan) as an incentive to retain personnel of experience and ability in key positions. The aggregate number of shares of the Company’s common stock subject to award under the Recognition Plan totaled 69,756.  Asshares were acquired for the Recognition Plan, the purchase price of these shares was recorded as a contra equity account.  As the shares are distributed, the contra equity account is reduced. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Recognition Plan shares are earned by recipients at a rate of 20% of the aggregate number of shares covered by the Recognition Plan award over five years.  If the employment of an employee or service as a non-employee director is terminated prior to the fifth anniversary of the date of grant of Recognition Plan share award for any reason other than the recipient’s death, disability, or following achange in control of the Company, the recipient shall forfeit the right to any shares subject to the award that have not been earned. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The cost associated with the Recognition Plan is based on a share price of $9.85, which represents the market price of the Company’s stock on the date on which the Recognition Plan shares were granted.  The cost is being recognized over five years.  Compensation expense pertaining to the Recognition Plan was $125,000 and $150,000, for the years ended June 30, 2009 and 2008, respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                        |                                                                      |   |                                                                      |   |                                                                      |   |                                                                      |
|-----------------------------|---------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|
|                        | Unawarded Shares                                                          |   | Awarded Shares                                                            |
|                        | 2009                                                                      |   | 2008                                                                      |   | 2009                                                                      |   | 2008                                                                      |
|                        |                                                                      |   |                                                                      |   |                                                                      |   |                                                                      |
| Balance - Beginning of Year |       1,952                                 |   |       1,490                                 |   |     38,333                                            |   |     54,605                                            |
| Purchased by Plan           |             - |   |             - |   |             - |   |             - |
| Granted                     |             - |   |             - |   |             - |   |             - |
| Forfeited                   |          338                 |   |          462                 |   |         (338)                     |   |         (462)                     |
| Earned and Issued           |             - |   |             - |   |    (12,781)                                                |   |    (15,810)                                                |
|                        |                                                                      |   |                                                                      |   |                                                                      |   |                                                                      |
| Balance - End of Year       |       2,290                                 |   |       1,952                                 |   |     25,214                                            |   |     38,333                                            |
|                        |                                                                      |   |                                                                      |   |                                                                      |   |                                                                      |

----

----

|   | On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Stock Option Plan (the Option Plan) for the benefit of directors, officers, and other employees.  The aggregate number of shares of common stock reserved for issuance under the Option Plan totaled 174,389.  Both incentive stock options and non-qualified stock optionsmay be granted under the plan. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |                                                                                        |   | Weighted                                        |
|--------------------------------------|---------------------------------------------------------------------------------------------|--------|-------------------------------------------------|
|                                 |                                                                                        |   | Average                                         |
|                                 | Number of                                                                                   |   | Exercise                                        |
|                                 | Shares                                                                                      |   | Price                                           |
| Outstanding at July 1, 2008          |      169,762                                                       |   |  $      9.85 |
| Granted                              |                - |   |                                            |
| Exercised                            |                - |   |                                            |
| Forfeited                            |       (11,628)                                                |   |                                            |
| Outstanding at June 30, 2009         |      158,134                                                       |   |  $      9.85 |
|                                 |                                                                                        |   |                                            |
| Options Exercisable at June 30, 2009 |      105,858                                                       |   |  $      9.85 |
|                                 |                                                                                        |   |                                            |
| Outstanding at July 1, 2007          |      170,857                                                       |   |  $      9.85 |
| Granted                              |                - |   |                                            |
| Exercised                            |                - |   |                                            |
| Forfeited                            |         (1,095)                                     |   |                                            |
| Outstanding at June 30, 2008         |      169,762                                                       |   |  $      9.85 |
|                                 |                                                                                        |   |                                            |
| Options Exercisable at June 30, 2008 |        73,688                                            |   |  $      9.85 |
|                                 |                                                                                        |   |                                            |

----

----

|   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                                   |
|-------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|-------------|--------|-------------------------------------------------------|
|                                                                                            |   |                                              |   | Weighted    |   |                                                  |   |   |   |   |
|                                                                                            |   |                                              |   | Average     |   | Weighted                                              |   |   |   | Weighted |
| Exercise                                                                                        |   |                                              |   | Remaining   |   | Average                                               |   |   |   | Average |
| Price                                                                                           |   |                                              |   | Contractual |   | Exercise                                              |   |   |   | Exercise |
| Range                                                                                           |   | Number                                            |   | Life        |   | Price                                                 |   | Number |   | Price |
|  $              9.85 |   |        167,753 |   | 5.26 Years  |   |  $       9.85 |   |      105,858 |   |  $       9.85 |
|                                                                                            |   |                                              |   |        |   |                                                  |   |   |   |   |

|   | Credit Related Financial Instruments |
|--------|--------------------------------------|

|   | The Bank is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments consist primarily of commitments to extend credit.  Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated BalanceSheets. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       |   |  Contract Amount                                                                                                                                                                                                                                                                                              |
|--------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |   | 2009                                                                                                                                                                                                                                                                                                               |   | 2008 |
|                                       |   |   (In Thousands)                                                                                                                                                                                                                                                                                              |
|                                       |   |                                                                                                                                                                                                                                                                                                               |   |   |
| Commitments to Grant Loans                 |   |  $                                                 6,935 |   |  $                                            104 |
| Unfunded Commitments Under Lines of Credit |   | 3,672                                                                                                                                                                                                                                                                                                              |   | 847 |
|                        |   |                                                                                                                                                                                                                                                                                                               |   |   |

|   | Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee.  The commitments for equity lines of credit may expire without being drawn upon.  Therefore, the total commitment amounts donot necessarily represent future cash requirements.  The amount and type of collateral obtained, if deemed necessary by the Bank upon extension of credit, varies and is based on management’s credit evaluation of the counterparty. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

|   | The Company periodically maintains cash balances in financial institutions that are in excess of insured amounts.  The Company has not experienced any losses and does not believe that significant credit risk exists as a result of this practice. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A substantial portion of the Bank’s lending activity is with customers located within a 100 mile radius of the Shreveport, Louisiana metropolitan area, which includes areas of northwest Louisiana, northeast Texas and southwest Arkansas.  Although concentrated within the region, the Bank has a diversified loan portfolio, which should preclude the Bank from being dependent upon the well being of anyparticular economic sector to ensure collectibility of any significant portion of its debtors’ loan contracts. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                        |   | 2009                                                                                                                                                                                                                                                                                                             |   | 2008                                                                                                                                                                                                                                                                                                                    |
|-----------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |   |   (In Thousands)                                                                                                                                                                                                                                                                                            |
|                        |   |                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                    |
| Balance - Beginning of Year |   |  $                                                 430 |   |  $                                                   266 |
| Additions                   |   | 1,329                                                                                                                                                                                                                                                                                                            |   | 195                                                                                                                                                                                                                                                                                                                     |
| Principal payments          |   | (138)                                                                                                                                                                                                                                                                                                            |   | (31)                                                                                                                                                                                                                                                                                                                    |
| Balance - End of Year       |   | $                                              1,621                            |   |  $                                                   430 |

----

----

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

|   | On December 31, 2007, the Company entered into an Agreement and Plan of Merger (the Agreement) with First Louisiana Bancshares, Inc. (First Louisiana) which provided for the merger of First Louisiana with and into the Company.  In connection with the merger, the Company’s current mutual holding company, Home Federal Mutual Holding Company of Louisiana, which owns approximately 63.1% of the Company’soutstanding shares, was to be merged into the Company in order to consummate the conversion of the Company to a full stock form organization. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In order to facilitate the merger and conversion, the Company offered up to 1,840,000 shares of its common stock to the public.  The costs associated with the stock issuance and conversion were capitalized with the intent to net these costs against the gross proceeds generated from the stock offering.  In addition, certain direct costs associated with the acquisition of First Louisiana were capitalizedwith the intent that these direct costs would be included in the total cost of the acquisition.  The Company was not able to sell the minimum number of shares required under the offering, and elected to terminate the offering.  As a result, those costs that were capitalized pertaining to the stock issuance and conversion, and with the planned merger with First Louisiana were written off and charged to expense in the consolidated statement of operations.  The amount of merger, conversionand stock issuance costs recognized in the consolidated statement of operations for the years ended June 30, 2009 and 2008 totaled $133,000 and $883,000, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | As of June 30, 2009, the most recent notification from the OTS categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized, the Bank must maintain minimum capital ratios, which are different than those required to meet OTS capital adequacy requirements. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

|                                                                                                                                                                               |                      |      |   |                                                         |   |                   |   |                                                                    |   |                 |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|-----------|--------|--------------------------------------------------------------|--------|------------------------|--------|-------------------------------------------------------------------------|--------|----------------------|--------|--------|
|                                                                                                                                                                               |                      |      |   |                                                         |   |                   |   |                                                                    |   | Required for Capital |
|                                                                                                                                                                               |                      |      |   |                                                         |   | Actual                 |   |                                                                    |   | Adequacy Purposes    |
|                                                                                                                                                                               |                      |      |   |                                                         |   | Amount                 |   | Ratio                                                                   |   | Amount               |   | Ratio  |
|                                                                                                                                                                               |                      |      |   |                                                         |   | (Dollars in Thousands) |   |                                                                    |   |                 |
| June 30, 2009                                                                                                                                                                      |                      |      |   |                                                         |   |                   |   |                                                                    |   |
|                                                                                                                                                                               | Core Capital              |  (1) |   |  $      29,163            |   | 18.93%                 |   |  $        4,623            |   | 3.00%                |
|                                                                                                                                                                               | Tangible Capital          |  (1) |   |          29,163 |   | 18.93%                 |   |            2,311 |   | 1.50%                |
|                                                                                                                                                                               | Total Risk-Based Capital  |  (2) |   |          29,629 |   | 54.77%                 |   |            4,328 |   | 8.00%                |
|                                                                                                                                                                               |                      |      |   |                                                         |   |                   |   |                                                                    |   |                 |   |   |
| 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%                |
|                                                                                                                                                                               |                      |      |   |                                                         |   |                   |   |                                                                    |   |                 |   |   |
|                                                                                                                                                                               |                      |      |   |                                                         |   |                   |   |                                                                    |   |                 |   |   |
| The Bank’s actual and required capital amounts and ratios to be well capitalized under prompt corrective action provisions are presented below as of June 30, 2009 and 2008. |
|                                                                                                                                                                               |
|                                                                                                                                                                               |                      |      |   |                                                         |   |                   |   |                                                                    |   | Required to be       |
|                                                                                                                                                                               |                      |      |   |                                                         |   | Actual                 |   |                                                                    |   | Well Capitalized     |
|                                                                                                                                                                               |                      |      |   |                                                         |   | Amount                 |   | Ratio                                                                   |   | Amount               |   | Ratio  |
|                                                                                                                                                                               |                      |      |   |                                                         |   | (Dollars in Thousands) |   |                                                                    |   |                 |
| June 30, 2009                                                                                                                                                                      |                      |      |   |                                                         |   |                   |   |                                                                    |   |
|                                                                                                                                                                               | Tier 1 Leverage Capital   |  (1) |   |  $      29,163            |   | 18.93%                 |   |  $        7,704            |   | 5.00%                |
|                                                                                                                                                                               | Tier 1 Risk-Based Capital |  (2) |   |          29,163 |   | 53.91%                 |   |            3,246 |   | 6.00%                |
|                                                                                                                                                                               | Total Risk-Based Capital  |  (2) |   |          29,629 |   | 54.77%                 |   |            5,410 |   | 10.00%               |
|                                                                                                                                                                               |                      |      |   |                                                         |   |                   |   |                                                                    |   |                 |   |   |
| 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%               |
|                                                                                                                                                                               |                      |      |   |                                                         |   |                   |   |                                                                    |   |                 |   |   |
| (1) Amounts and Ratios to Adjusted Total Assets                                                                                                                                    |                      |      |   |                                                         |   |                   |
| (2) Amounts and Ratios to Total Risk-Weighted Assets                                                                                                                               |                      |      |   |                                                         |
|                                                                                                                                                                               |                      |      |   |                                                         |   |                   |   |                                                                    |   |                 |   |   |

----

----

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

|                                    |                               |                          |                                                                      |                                                  |   |                      |   |                                             |   |                                             |
|-----------------------------------------|------------------------------------|-------------------------------|---------------------------------------------------------------------------|-------------------------------------------------------|--------|---------------------------|--------|--------------------------------------------------|--------|--------------------------------------------------|
|                                    |                               |                          |                                                                      |                                                  |   |                      |   | Minimum for Capital                              |
|                                    |                               |                          |                                                                      | Actual                                                |   |                      |   | Adequacy Purposes                                |
| June 30, 2009                           | Ratio                              |                          | Amount                                                                    |                                                  | Ratio  |                      | Amount |
|                                    |                               |                          |                                                                      | (Dollars in Thousands)                                |   |                      |
|                                    |                               |                          |                                                                      |                                                  |   |                      |   |                                             |   |                                             |
| Total Equity, and Ratio to Total Assets | 19.19%                             |                          |  $  29,723                                                 |                                                  |   |                      |   |
| Investments in and Advances to          |                               |                          |                                                                      |                                                  |   |                      |   |
|                                    | Nonincludable Subsidiaries         |                          |                                                                      |         (121) |   |                      |   |                                             |
| Unrealized Gains on                |                               |                          |                                                                      |                                                  |   |                      |   |
|                                    | Securities Available-for-Sale      |                          |                                                                      |         (439) |   |                      |   |                                             |
| Tangible Capital, and Ratio             |                               |                          |                                                                      |                                                  |   |                      |   |
|                                    | to Adjusted Total Assets           | 18.93%                        |                                                                      |  $  29,163                             |   | 1.5%                      |   |  $      2,311 |
| Tier 1 (Core) Capital,                  |                               |                          |                                                                      |                                                  |   |                      |   |
|                                    | and Ratio to Adjusted Total Assets | 18.93%                        |                                                                      |  $  29,163                             |   | 3.0%                      |   |  $      4,623 |
| Tier 1 (Core) Capital,                  |                               |                          |                                                                      |                                                  |   |                      |   |
|                                    | and Ratio to Risk-Weighted Assets  | 53.91%                        |                                                                      |  $  29,163                             |   |                      |   |                                             |
| Allowance for Loan Losses               |                               |                          |           466           |                                                  |   |                      |   |
| Equity Investment                       |                               |                          |             - |                                                  |   |                      |   |
|                                    |                               |                          |                                                                      |                                                  |   |                      |   |                                             |   |                                             |
|                                    |                               | Total Risk-Based Capital, and |                                                                      |                                                  |   |                      |   |                                             |   |
|                                    |                               |                          | Ratio to Risk-Weighted Assets                                             | 54.77%                                                |   |  $  29,629 |   | 8.0%                                             |   |  $      4,328 |
|                                    |                               |                          |                                                                      |                                                  |   |                      |   |                                             |   |                                             |
| Total Assets                            |                               |                          |  $ 154,872                                                           |                                                  |   |                      |   |
|                                    |                               |                          |                                                                      |                                                  |   |                      |   |                                             |   |                                             |
| Adjusted Total Assets                   |                               |                          |  $ 154,086                                                           |                                                  |   |                      |   |
|                                    |                               |                          |                                                                      |                                                  |   |                      |   |                                             |   |                                             |
| Risk-Weighted Assets                    |                               |                          |  $  54,095                                                 |                                                  |   |                      |   |
|                                    |                               |                          |                                                                      |                                                  |   |                      |   |                                             |   |                                             |

----

----

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

|                                    |                               |                          |                                                                            |                                                        |   |                            |   |                                                   |   |                                                   |
|-----------------------------------------|------------------------------------|-------------------------------|---------------------------------------------------------------------------------|-------------------------------------------------------------|--------|---------------------------------|--------|--------------------------------------------------------|--------|--------------------------------------------------------|
|                                    |                               |                          |                                                                            |                                                        |   |                            |   | Minimum for Capital                                    |
|                                    |                               |                          |                                                                            | Actual                                                      |   | 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                                                 |                                                        |   |                            |   |
|                                    |                               |                          |                                                                            |                                                        |   |                            |   |                                                   |   |                                                   |

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

|   | Federal and state banking regulations place certain restrictions on dividends paid by the Bank to the Company.  The total amount of dividends which may be paid at any date is generally limited to the retained earnings of the Bank. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | The following methods and assumptions were used by the Bank in estimating fair values of financial instruments: |
|--------|-----------------------------------------------------------------------------------------------------------------|

|   | Cash and Cash Equivalents |
|--------|---------------------------|

|   | The carrying amount approximates the fair value of cash and cash equivalents. |
|--------|-------------------------------------------------------------------------------|

----

----

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

|   | Securities to be Held-to-Maturity and Available-for-Sale |
|--------|----------------------------------------------------------|

|   | Mortgage Loans Held-for-Sale |
|--------|------------------------------|

|   | Loans Receivable |
|--------|------------------|

|   | For variable-rate loans that re-price frequently and with no significant changes in credit risk, fair value approximates the carrying value. Fair values for other loans are estimated using the discounted value of expected future cash flows.  Interest rates used are those being offered for loans with similar terms to borrowers of similar credit quality.  The carrying amount of accrued interestreceivable approximates its fair value. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Deposit Liabilities |
|--------|---------------------|

|   | The fair values for demand deposit accounts are, by definition, equal to the amount payable on demand at the reporting date, that is, their carrying amounts.  Fair values for other deposit accounts are estimated using the discounted value of expected future cash flows.  The discount rate is estimated using the rates currently offered for deposits of similar maturities. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Advances from Federal Home Loan Bank |
|--------|--------------------------------------|

|   | The carrying amount of short-term borrowings approximates their fair value.  The fair value of long-term debt is estimated using discounted cash flow analyses based on current incremental borrowing rates for similar borrowing arrangements. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Accrued Interest Payable |
|--------|--------------------------|

|   | The carrying amount of accrued interest payable on deposits and borrowings approximates the fair value. |
|--------|---------------------------------------------------------------------------------------------------------|

|   | Off-Balance Sheet Credit-Related Instruments |
|--------|----------------------------------------------|

|   | Fair values for outstanding mortgage loan commitments to lend are based on fees currently charged to enter into similar agreements, taking into account the remaining term of the agreements, customer credit quality, and changes in lending rates.  The fair value of interest rate floors and caps contained in some loan servicing agreements and variable rate mortgage loan contracts are considered immaterialwithin the context of fair value disclosure requirements.  Accordingly, no fair value estimate is provided for these instruments. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

|                          |                              | 2009                                                                                                          |   | 2008                                                                                                     |
|-------------------------------|-----------------------------------|---------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|
|                          |                              | Carrying                                                                                                      |   | Estimated                                                                                                |   | Carrying |   | Estimated |
|                          |                              | Value                                                                                                         |   | Fair Value                                                                                               |   | Value |   | Fair Value |
|                          |                              | (In Thousands)                                                                                                |   | (In Thousands)                                                                                           |
| Financial Assets              |                              |                                                                                                          |   |                                                                                                     |   |   |   |
|                          | Cash and Cash Equivalents         |  $      10,007                                                             |   |  $      10,007                                                        |   |  $        7,363 |   |  $        7,363 |
|                          | Securities Available-for-Sale     |          92,647                                                  |   |          92,647                                             |   |          96,324 |   |          96,324 |
|                          | Securities to be Held-to-Maturity |            2,184                                       |   |             2,195                            |   |            1,688 |   |             1,703 |
|                          | Loans Held-for-Sale               |            1,277                                       |   |             1,277                            |   |                852 |   |                852 |
|                          | Loans Receivable                  |          46,948                                                  |   |          50,461                                             |   |          28,263 |   |          29,576 |
|                          | Accrued Interest Receivable       |                543                 |   |                543            |   |                550 |   |                550 |
|                          |                              |                                                                                                          |   |                                                                                                     |   |   |   |   |
| Financial Liabilities         |                              |                                                                                                          |   |                                                                                                     |   |   |   |
|                          | Deposits                          |          86,146                                                  |   |          88,314                                             |   |          78,359 |   |          79,667 |
|                          | Accrued Interest Payable          |                157                 |   |                157            |   |                144 |   |                144 |
|                          | Advances from Borrowers           |                137                 |   |                137            |   |                177 |   |                177 |
|                          | Advances from FHLB                |          35,997                                                  |   |          37,088                                             |   |          26,876 |   |          26,753 |
|                          |                              |                                                                                                          |   |                                                                                                     |   |   |   |   |
| Off-Balance Sheet Liabilities |                              |                                                                                                          |   |                                                                                                     |   |   |
|                          | Mortgage Loan Commitments         |                   - |   |                  69 |   |                   - |   |                    1 |
|                          |                              |                                                                                                          |   |                                                                                                     |   |   |   |   |

| §   | Defines fair value as the price that would be received to sell an asset or paid to transfer a liability, in either case, through an orderly transaction between market participants at a measurement date and establishes a framework for measuring fair value; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Nullifies the guidance in EITF 02-3, which required the deferral of profit at inception of a transaction involving a derivative financial instrument in the absence of observable data supporting the valuation technique; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Eliminates large position discounts for financial instruments quoted in active markets and requires consideration of the company’s creditworthiness when valuing liabilities; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Expands disclosures about instrument that are measured at fair value. |
|--------------------|-----------------------------------------------------------------------|

----

----

| §   | Level 1 – Fair value is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets in which the Company can participate. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Level 2 – Fair value is based upon (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantiallyeither over time or among market makers, or in which little information is released publicly; (c) inputs other than quoted prices that are observable for the asset or liability or (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Level 3 – Fair value is based upon inputs that are unobservable for the asset or liability.  These inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  Theseinputs are developed based on the best information available in the circumstances, which include the Company’s own data. The Company’s own data used to develop unobservable inputs are adjusted if information indicates that market participants would use different assumptions. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                                                                                                                            |   |                                                                                                              |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|
|               |                                                Fair Value                                       MeasurementsUsing: |
|               |  Quoted Prices in Active Markets forIdentical Assets(Level 1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Significant OtherObservableInputs(Level 2)            |     Total                                                                                                   |
| June 30, 2009      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                                                                                                                            |   |                                                                                                              |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                                                                                                                            |   |                                                                                                              |
| Available-for-Sale |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                                                                                                                            |   |                                                                                                              |
| Debt Securities    |  $                        -                                                                                                                                                                                                                                                                                                                                                                                                         |                                                  |  $           90,920                                                 |   |  $             90,920                       |
| Equity Securities  |                    1,727                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                  |                      - |   |                   1,727 |
| Total              |  $                1,727                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                  |  $           90,920                                                 |   |  $             92,647                       |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                                                                                                                            |   |                                                                                                              |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                                                                                                                            |   |                                                                                                              |
|               |                                          Fair Value                                Measurements Using:                                                                                   |
|               |  Quoted Prices in Active Markets for Identical Assets(Level 1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Significant OtherObservableInputs (Level 2) |     Total                                                                                                   |
| June 30, 2008      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                                                                                                                            |   |                                                                                                              |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                                                                                                                            |   |                                                                                                              |
| Available-for-Sale |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                                                                                                                            |   |                                                                                                              |
| Debt Securities    |  $                        -                                                                                                                                                                                                                                                                                                                                                                                                         |                                                  |  $           94,161                                                 |   |  $             94,161                       |
| Equity Securities  |                    2,163                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                  |                      - |   |                   2,163 |
| Total              |  $                2,163                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                  |  $           94,161                                                 |   |  $             96,324                       |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                                                                                                                            |   |                                                                                                              |

----

----

| Note 22. | Earnings Per Common Share |
|----------|---------------------------|

|   | The following table presents the components of average outstanding common shares for the years ended June 30, 2009 and 2008: |
|--------|------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | 2009                                                                                  | 2008                                                                                  |
|--------------------------------------|--------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                                 |   |                                                                                  |                                                                                  |
| Average Common Shares Issued         |   | 3,558,958                                                                             | 3,558,958                                                                             |
| Average Treasury Shares Held         |   | (181,874)                                                                             | (175,168)                                                                             |
| Average Unearned ESOP Shares         |   | (91,110)                                                                              | (96,804)                                                                              |
| Average Unearned RRP Shares          |   |    (29,220)                                                            |    (42,872)                                                            |
|                                 |   |                                                                                  |                                                                                  |
| Weighted Avenue Number of Common     |   |                                                                                  |                                                                                  |
| Shares Used in Basic EPS             |   | 3,256,754                                                                             | 3,244,114                                                                             |
|                                 |   |                                                                                  |                                                                                  |
| Effect of Dilutive Securities        |   |                                                                                  |                                                                                  |
| Stock Options                        |   |               - |               - |
|                                 |   |                                                                                  |                                                                                  |
| Weighted Average Number of Common    |   |                                                                                  |                                                                                  |
| Shares and Dilutive Potential Common |   |                                                                                  |                                                                                  |
| Shares Used in Dilutive EPS          |   | 3,256,754                                                                             | 3,244,114                                                                             |

| Note 23. | Subsequent Events |
|----------|-------------------|

|   | In accordance with SFAS No. 165, Subsequent Events, management has evaluated subsequent events through the date that the financial statements were issued, September 15, 2009, and determined that no events occurred that require disclosure.  No subsequent events occurring after this date have been evaluated for inclusion in these financial statements. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA |                      |                                                                                                     |                                        |
|-----------------------------------------|---------------------------|----------------------------------------------------------------------------------------------------------|---------------------------------------------|
| Condensed Balance Sheets                |                      |                                                                                                     |                                        |
| June 30, 2009 and 2008                  |                      |                                                                                                     |                                        |
|                                    |                      |                                                                                                     |                                        |   |   |
|                                    |                      |                                                                                                     |                                        |   |   |
|                                    |                      |                                                                                                     | 2009                                        |   | 2008 |
|                                    |                      |                                                                                                     | (In Thousands)                              |
| Assets                                  |                      |                                                                                                     |                                        |
|                                    | Cash and Cash Equivalents |  $       1,125                                                   |                                        |  $       1,535 |
|                                    | Investment in Subsidiary  |    29,723                                                                                 |                                        |    25,950 |
|                                    | Other Assets              |         462                                                      |                                        |         492 |
|                                    |                      |                                                                                                     |                                        |   |   |
|                                    |                      | Total Assets                                                                                             |  $     31,310 |   |  $     27,977 |
|                                    |                      |                                                                                                     |                                        |   |   |
| Liabilities and Stockholders' Equity    |                      |                                                                                                     |                                        |
|                                    | Other Liabilities         |  $                - |                                        |  $          103 |
|                                    | Stockholders' Equity      |    31,310                                                                                 |                                        |    27,874 |
|                                    |                      |                                                                                                     |                                        |   |   |
|                                    |                      | Total Liabilities and Stockholders' Equity                                                               |  $     31,310 |   |  $     27,977 |
|                                    |                      |                                                                                                     |                                        |   |   |

----

----

| Note 24. | Parent Company Financial Statements (Continued) |
|----------|-------------------------------------------------|

| HOME FEDERAL BANCORP, INC. OF LOUISIANA        |                                                                 |                                                            |                                               |
|------------------------------------------------|----------------------------------------------------------------------|-----------------------------------------------------------------|----------------------------------------------------|
| Condensed Statements of Operations             |                                                                 |                                                            |                                               |
| For the Years Ended June 30, 2009 and 2008     |                                                                 |                                                            |                                               |
|                                           |                                                                 |                                                            |                                               |   |
|                                           |                                                                 |                                                            |                                               |   |
|                                           |                                                                 | 2009                                                            |                                               | 2008 |
|                                           |                                                                 | (In Thousands)                                                  |
| Equity in Undistributed Earnings of Subsidiary |  $       701                 |                                                            |  $    587                 |
| Interest Income                                |            52 |                                                            |         55 |
|                                           |                                                                 |                                                            |                                               |   |
|                                           | Total Income                                                         |           753 |                                               |        642 |
|                                           |                                                                 |                                                            |                                               |   |
| Operating Expenses                             |           213      |                                                            |        186      |
| Conversion and Merger Expense                  |           133      |                                                            |        883      |
|                                           |                                                                 |                                                            |                                               |   |
|                                           | Total Expenses                                                       |           346 |                                               |     1,069 |
|                                           |                                                                 |                                                            |                                               |   |
| Income (Loss) Before Income Tax Benefit        |           407      |                                                            |      (427)                |
| Income Tax Benefit                             |         (108)                |                                                            |      (345)                |
|                                           |                                                                 |                                                            |                                               |   |
|                                           | Net Income (Loss)                                                    |  $       515            |                                               |  $    (82) |
|                                           |                                                                 |                                                            |                                               |   |

----

----

| Note 24. | Parent Company Financial Statements (Continued) |
|----------|-------------------------------------------------|

| HOME FEDERAL BANCORP, INC. OF LOUISIANA      |                                              |                                                 |                                           |
|----------------------------------------------|---------------------------------------------------|------------------------------------------------------|------------------------------------------------|
| Condensed Statements of Cash Flows           |                                              |                                                 |                                           |
| For the Years Ended June 30, 2009 and 2008   |                                              |                                                 |                                           |
|                                         |                                              |                                                 |                                           |   |   |   |   |
|                                         |                                              |                                                 |                                           |   | 2009 |   | 2008 |
|                                         |                                              |                                                 |                                           |   | (In Thousands) |
| Operating Activities                         |                                              |                                                 |                                           |
|                                         | Net Income (Loss)                                 |  $     515             |                                           |  $    (82) |
|                                         | Adjustments to Reconcile Net Income (Loss) to Net |                                                 |                                           |   |
|                                         |                                              | Cash Used in Operating Activities                    |                                           |   |   |
|                                         |                                              |                                                 | Equity in Undistributed Earnings of Subsidiary |        (701) |   |      (587) |
|                                         |                                              |                                                 | Decrease (Increase) in Other Assets            |           30 |   |      (305) |
|                                         |                                              |                                                 | (Decrease) Increase in Other Liabilities       |        (103) |   |        103 |
|                                         |                                              |                                                 |                                           | Net Cash Used in Operating Activities |        (259) |   |      (871) |
|                                         |                                              |                                                 |                                           |   |   |   |   |
| Investing Activities                         |                                              |                                                 |                                           |
|                                         |                                              |                                                 |                                           | Net Cash Provided by Investing Activities |           - |   |          - |
|                                         |                                              |                                                 |                                           |   |   |   |   |
| Financing Activities                         |                                              |                                                 |                                           |
|                                         | Paid-In Capital                                   |         225  |                                           |        270 |
|                                         | Aquisition of Treasury Stock                      |         (78) |                                           |        (38) |
|                                         | Dividends Paid                                    |        (298)      |                                           |      (296) |
|                                         |                                              |                                                 |                                           | Net Cash Used in Financing Activities |        (151) |   |        (64) |
|                                         |                                              |                                                 |                                           |   |   |   |   |
| Decrease in Cash and Cash Equivalents        |        (410)   |                                                 |      (935)            |
| Cash and Cash Equivalents, Beginning of Year |      1,535               |                                                 |     2,470                  |
|                                         |                                              |                                                 |                                           |   |   |   |   |
| Cash and Cash Equivalents, End of Year       |  $  1,125                          |                                                 |  $ 1,535                                  |
|                                         |                                              |                                                 |                                           |   |   |   |   |

----

|  Home Federal Bancorp, Inc. of Louisiana                                                 |
|-----------------------------------------------------------------------------------------------|
|                                                                                          |
|  MARKET PRICE OF HOME FEDERAL BANCORP, INC.COMMON SHARES AND RELATED SHAREHOLDER MATTERS |

|               |   |   |   |   |   | Cash Dividends |
|--------------------|--------|--------|--------|--------|--------|----------------|
| Quarter Ended:     |   | High   |   | Low    |   | per Share      |
|               |   |   |   |   |   |           |
| Fiscal 2009        |   |   |   |   |   |           |
| June 30, 2009      |   | $8.00  |   | $5.75  |   | $0.06          |
| March 31, 2009     |   | 8.00   |   | 6.00   |   | 0.06           |
| December 31, 2008  |   | 7.50   |   | 6.00   |   | 0.06           |
| September 30, 2008 |   | 8.99   |   | 7.50   |   | 0.06           |
|               |   |   |   |   |   |           |
| 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           |

----

|  Home Federal Bancorp, Inc. of Louisiana |
|-----------------------------------------------|
|                                          |
| DIRECTORS AND EXECUTIVE OFFICERS              |

| Directors                                                                                                                                                                             |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Daniel R. HerndonChairman of the Board, President andChief Executive Officer                                                                                                               | Henry M. HearneDirector.  Self employed in the fields of investmentand farming |
|  James R. BarlowDirector. President and Chief Operating OfficerHome Federal Bank                                                                                                      |  David A. Herndon IIIDirector.  Retired geologist |
|  Clyde D. PattersonDirector. Executive Vice President                                                                                                                                 |  Woodus K. HumphreyDirector.  Insurance executive,Woodus Humphrey Insurance, Inc.,Shreveport, Louisiana Scott D. LawrenceDirector.  President of Southwestern Wholesale, Shreveport, Louisiana |
|    Walter T. Colquitt IIIDirector. Dentist, Shrevport, 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 |
|                                                                                                                                                                                       |   |
|                                                                                                                                                                                       |   |
| Executive Officers                                                                                                                                                                    |
| Daniel R. HerndonPresident andChief Executive Officer                                                                                                                                 | James R. BarlowPresident and Chief Operating OfficerHome Federal Bank |
| Clyde D. PattersonExecutive Vice President                                                                                                                                                 |

|  BANKING AND OFFICE LOCATIONS |
|------------------------------------|

|  6363 Youree Drive Shreveport, Louisiana |  8990 Mansfield RoadShreveport, Louisiana          |
|----------------------------------------------------|---------------------------------------------------------|
|                                               |                                                    |   |   |
|                                               |  Agency Office                                     |   |
|                                               |  6425 Youree Drive, Suite 100Shreveport, Louisiana |   |

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