UNITED
      STATESSECURITIES
      AND EXCHANGE COMMISSIONWashington,
      DC  20549FORM
      10-Q(Mark
      One)[X]
                QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934
  For
      the quarterly period ended:
              December
      31, 2008or  [ 
      ]
                          TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934
  For
      the transition period from
                                    
                                    to
 Commission
      file number:
                    000-51117HOME
      FEDERAL BANCORP, INC. OF LOUISIANA(Exact
      name of registrant as specified in its charter)Federal
                    
                    86-1127166(State
      or other jurisdiction of incorporation or organization)
                    
                    (IRS
      Employer Identification No.624
      Market Street, Shreveport, Louisiana
                    
                    71101(Address
      of principal executive offices)
                    
                    (Zip
      Code)(318)
      222-1145(Registrant’s
      telephone number, including area code)(Former
      name, former address and former fiscal year, if changed since last
      report)Indicate by
      check mark whether the registrant (1) has filed all reports required to be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the preceding 12 months (or for such shorter period that the registrant
      was required to file such reports), and (2) has been subject to such
      filing requirements for the past 90
      days.    Yes  [  ]    No
       [X]Indicate by
      check mark whether the registrant is a large accelerated filer, an
      accelerated filer, a non-accelerated filer, or a smaller reporting
      company.  See the definitions of “large accelerated filer,”
      “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
      Exchange Act. (Check One):Large
      accelerated filer [ 
    ]
                    Accelerated
      filer [ 
      ]Non-accelerated
      filer  [ 
      ]
                    Smaller reporting
      company 
      [X](Do
      not check if a smaller reporting company)Indicate
      by check mark whether the registrant is a shell company (as defined in
      Rule 12b-2 of the Exchange Act).[  ] Yes  [X]
      NoShares of
      common stock, par value $.01 per share, outstanding as of February 13,
      2009: The registrant had 3,377,600 shares of common stock outstanding, of
      which 2,135,375 shares were held by Home Federal Mutual Holding Company of
      Louisiana, the registrant’s mutual holding company, and 1,242,225 shares
      were held by the public and directors, officers and employees of the
      registrant, and the registrant’s employee benefit
      plans.
  
  INDEX
 
 
 PART
      I
                --
                FINANCIAL
      INFORMATION
                PageItem
      1:
                Financial
      StatementsConsolidated
      Statements of Financial Condition
                1Consolidated
      Statements of Income
                2Consolidated
      Statements of Changes in Stockholders' Equity
                3Consolidated
      Statements of Cash Flows
                4Notes
      to Consolidated Financial Statements
                6Item
      2:
                Management's
      Discussion and Analysis of Financial Condition and
                  Results
      of Operations
                13Item
      3:
                Quantitative
      and Qualitative Disclosures About Market Risk
                19Item
      4:
                Controls
      and Procedures
                19Item
      4T.
                Controls
      and Procedures
                19PART
      II - OTHER INFORMATIONItem
      1:
                Legal
      Proceedings
                20Item
      1A:
                Risk
      Factors
                20Item
      2:
                Unregistered
      Sales of Equity Securities and Use of Proceeds
                20Item
      3:
                Defaults
      Upon Senior Securities
                21Item
      4:
                Submission
      of Matters to a Vote of Security Holders
                21Item
      5:
                Other
      Information
                21Item
      6:
                Exhibits
                21SIGNATURES
 
 
 
 HOME
      FEDERAL BANCORP, INC. OF LOUISIANACONSOLIDATED
      STATEMENTS OF FINANCIAL CONDITIONDecember
      31,
                          
                          
                          June
      30,2008
                          
                          
                          2008(Unaudited)
                          
                          
                          (Audited)ASSETS
                          (In
      Thousands)Cash
      and Cash Equivalents (Includes Interest-Bearing
                            Deposits
      with Other Banks of $1,357 and $4,957 for
                            December
      31, 2008 and June 30, 2008, respectively)
                          
                          $
                          2,734
                          
                          
                          $
                          7,363Securities
      Available-for-Sale
                          
                          
                          120,165
                          
                          
                          
                          96,324Securities
      Held-to-Maturity
                          
                          
                          2,186
                          
                          
                          
                          1,688Loans
      Held for Sale
                          
                          
                          785
                          
                          
                          
                          852Loans
      Receivable, Net
                          
                          
                          28,199
                          
                          
                          
                          28,263Accrued
      Interest Receivable
                          
                          
                          602
                          
                          
                          
                          550Premises
      and Equipment, Net
                          
                          
                          860
                          
                          
                          
                          880Deferred
      Tax Asset
                          
                          
                          -
                          
                          
                          
                          1,691Foreclosed
      Real Estate
                          
                          
                          -
                          
                          
                          
                          52Other
      Assets
                          
                          
                          26
                          
                          
                          
                          52Total Assets
                          
                          $
                          155,557
                          
                          
                          $
                          137,715LIABILITIES
      AND STOCKHOLDERS’ EQUITYLIABILITIESDeposits
                          
                          $
                          78,692
                          
                          
                          $
                          78,359Advances
      from Borrowers for Taxes and Insurance
                          
                          
                          60
                          
                          
                          
                          177Advances
      from Federal Home Loan Bank of Dallas
                          
                          
                          40,827
                          
                          
                          
                          26,876Stock
      Purchase Deposit Escrow
                          
                          
                          -
                          
                          
                          
                          3,575Other
      Accrued Expenses and Liabilities
                          
                          
                          754
                          
                          
                          
                          854Deferred
      Tax Liability
                          
                          
                          1,385
                          
                          
                          
                          -Total Liabilities
                          
                          
                          121,718
                          
                          
                          
                          109,841COMMITMENTSSTOCKHOLDERS’
      EQUITYPreferred
      Stock – No Par Value; 2,000,000 Shares
                            Authorized;
      None Issued and Outstanding
                          
                          
                          --
                          
                          
                          
                          --Common
      stock - 8,000,000 shares of $.01 par value
                            authorized;
      3,558,958 shares issued; 3,377,600
                            shares
      outstanding and 3,383,287 shares outstanding at
                            December
      31, 2008 and June 30, 2008, respectively
                          
                          
                          14
                          
                          
                          
                          14Additional
      paid-in capital
                          
                          
                          13,589
                          
                          
                          
                          13,567Treasury
      Stock, at Cost – 181,358 Shares at
                            December 31, 2008; 175,671 Shares at June 30, 2008
                          
                          
                          (1,858
                          )
                          
                          
                          (1,809
                          )Unearned
      ESOP Stock
                          
                          
                          (911
                          )
                          
                          
                          (940
                          )Unearned
      RRP Trust Stock
                          
                          
                          (269
                          )
                          
                          
                          (395
                          )Retained
      Earnings
                          
                          
                          20,170
                          
                          
                          
                          20,071Accumulated
      Other Comprehensive Income (Loss)
                          
                          
                          3,104
                          
                          
                          
                          (2,634
                          )Total Stockholders’
      Equity
                          
                          
                          33,839
                          
                          
                          
                          27,874TOTAL
      LIABILITIES AND STOCKHOLDERS’
                            EQUITY
                          
                          $
                          155,557
                          
                          
                          $
                          137,715See
      accompanying notes to consolidated financial statements.
  1
  HOME
      FEDERAL BANCORP, INC. OF LOUISIANACONSOLIDATED
      STATEMENTS OF INCOME(Unaudited)Three
      Months Ended
                      
                      
                      Six
      Months EndedDecember
      31,
                      
                      
                      December
      31,2008
                      
                      
                      2007
                      
                      
                      2008
                      
                      
                      2007(In
      Thousands, Except Per Share Data)INTEREST
      INCOMELoans,
      Including Fees
                      
                      $
                      510
                      
                      
                      $
                      530
                      
                      
                      $
                      1,038
                      
                      
                      $
                      1,045Investment
      Securities
                      
                      
                      31
                      
                      
                      
                      78
                      
                      
                      
                      71
                      
                      
                      
                      144Mortgage-Backed
      Securities
                      
                      
                      1,326
                      
                      
                      
                      1,122
                      
                      
                      
                      2,592
                      
                      
                      
                      2,231Other
      Interest-Earning Assets
                      
                      
                      4
                      
                      
                      
                      49
                      
                      
                      
                      20
                      
                      
                      
                      86Total
      Interest Income
                      
                      
                      1,871
                      
                      
                      
                      1,779
                      
                      
                      
                      3,721
                      
                      
                      
                      3,506INTEREST
      EXPENSEDeposits
                      
                      
                      638
                      
                      
                      
                      797
                      
                      
                      
                      1,312
                      
                      
                      
                      1,567Federal
      Home Loan Bank Borrowings
                      
                      
                      353
                      
                      
                      
                      204
                      
                      
                      
                      659
                      
                      
                      
                      400Total
      Interest Expense
                      
                      
                      991
                      
                      
                      
                      1,001
                      
                      
                      
                      1,971
                      
                      
                      
                      1,967Net
      Interest Income
                      
                      
                      880
                      
                      
                      
                      778
                      
                      
                      
                      1,750
                      
                      
                      
                      1,539PROVISION
      FOR LOAN LOSSES
                      
                      
                      --
                      
                      
                      
                      --
                      
                      
                      
                      --
                      
                      
                      
                      --Net
      Interest Income afterProvision
      for Loan Losses
                      
                      
                      880
                      
                      
                      
                      778
                      
                      
                      
                      1,750
                      
                      
                      
                      1,539NON-INTEREST
      INCOMEGain
      on Sale of Loans
                      
                      
                      -
                      
                      
                      
                      3
                      
                      
                      
                      -
                      
                      
                      
                      4Gain
      on Sale of Investments
                      
                      
                      -
                      
                      
                      
                      72
                      
                      
                      
                      33
                      
                      
                      
                      94Other
      Income
                      
                      
                      10
                      
                      
                      
                      7
                      
                      
                      
                      20
                      
                      
                      
                      22Total
      Non-Interest Income
                      
                      
                      10
                      
                      
                      
                      82
                      
                      
                      
                      53
                      
                      
                      
                      120NON-INTEREST
      EXPENSEMerger
      and Stock Issuance Costs
                      
                      
                      1
                      
                      
                      
                      -
                      
                      
                      
                      133
                      
                      
                      
                      -Compensation
      and Benefits
                      
                      
                      409
                      
                      
                      
                      396
                      
                      
                      
                      806
                      
                      
                      
                      790Occupancy
      and Equipment
                      
                      
                      44
                      
                      
                      
                      41
                      
                      
                      
                      90
                      
                      
                      
                      85Data
      Processing
                      
                      
                      16
                      
                      
                      
                      16
                      
                      
                      
                      36
                      
                      
                      
                      33Audit
      and Professional Fees
                      
                      
                      75
                      
                      
                      
                      91
                      
                      
                      
                      110
                      
                      
                      
                      132Franchise
      and Bank Shares Tax
                      
                      
                      37
                      
                      
                      
                      38
                      
                      
                      
                      75
                      
                      
                      
                      76Other
      Expense
                      
                      
                      97
                      
                      
                      
                      51
                      
                      
                      
                      177
                      
                      
                      
                      146Total
      Non-Interest Expense
                      
                      
                      679
                      
                      
                      
                      633
                      
                      
                      
                      1,427
                      
                      
                      
                      1,262Income
      Before Income Taxes
                      
                      
                      211
                      
                      
                      
                      227
                      
                      
                      
                      376
                      
                      
                      
                      397PROVISION
      FOR INCOME TAX EXPENSE
                      
                      
                      72
                      
                      
                      
                      76
                      
                      
                      
                      128
                      
                      
                      
                      134Net
      Income
                      
                      $
                      139
                      
                      
                      $
                      151
                      
                      
                      $
                      248
                      
                      
                      $
                      263INCOME
      PER COMMON SHARE:Basic
                      
                      $
                      0.04
                      
                      
                      $
                      0.05
                      
                      
                      $
                      0.08
                      
                      
                      $
                      0.08Diluted
                      
                      $
                      0.04
                      
                      
                      $
                      0.05
                      
                      
                      $
                      0.08
                      
                      
                      $
                      0.08DIVIDENDS
      DECLARED
                      
                      $
                      0.06
                      
                      
                      $
                      0.06
                      
                      
                      $
                      0.12
                      
                      
                      $
                      0.12
 See
accompanying notes to consolidated financial statements.
 2
  HOME
FEDERAL BANCORP, INC. OF LOUISIANA
 
 CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
 SIX
MONTHS ENDED DECEMBER 31, 2008 AND 2007
 
 Common
      Stock
                                                                                                              
                                                                                                              
                                                                                                              Additional
                                                                                                                Paid-in
                                                                                                                Capital
                                                                                                              
                                                                                                              
                                                                                                              Unearned
                                                                                                                ESOP
                                                                                                                  Stock
                                                                                                              
                                                                                                              Unearned

                                                                                                                RRP
                                                                                                                Trust
                                                                                                                Stock
                                                                                                              
                                                                                                              
                                                                                                              Retained
                                                                                                                Earnings
                                                                                                              
                                                                                                              
                                                                                                              Treasury
                                                                                                                  Stock
                                                                                                              
                                                                                                              
                                                                                                              Accumulated

                                                                                                                Other
                                                                                                                Comprehensive
                                                                                                                (Loss)
      Income
                                                                                                              
                                                                                                              
                                                                                                              Total
                                                                                                                Stockholders’
                                                                                                                Equity(In
      Thousands)BALANCE –JUNE
      30, 2007
                                                                                                              
                                                                                                              $
                                                                                                              14
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              13,509
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              (997)
                                                                                                              
                                                                                                              $
                                                                                                              (551
                                                                                                              )
                                                                                                              
                                                                                                              $
                                                                                                              20,449
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              (1,771
                                                                                                              )
                                                                                                              
                                                                                                              $
                                                                                                              (2,841
                                                                                                              )
                                                                                                              
                                                                                                              $
                                                                                                              27,812Net
      Income
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              263
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              263Other
      Comprehensive Loss:Changes
      in Unrealized Gain
                                                                                                                on
      Securities Available-
                                                                                                                for-Sale,
      Net of Tax Effects
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              2,335
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              2,335RRP
      Shares Earned
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              156
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              156Stock
      Options Vested
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              32
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              32ESOP
      Compensation Earned
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              28
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              28Dividends
      Declared
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              (147
                                                                                                              )
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              (147
                                                                                                              )Acquisition
      Treasury Stock
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              (38
                                                                                                              )
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              (38
                                                                                                              )BALANCE
      –DECEMBER
      31, 2007
                                                                                                              
                                                                                                              $
                                                                                                              14
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              13,541
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              (969)
                                                                                                              
                                                                                                              $
                                                                                                              (395
                                                                                                              )
                                                                                                              
                                                                                                              $
                                                                                                              20,565
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              (1,809
                                                                                                              )
                                                                                                              
                                                                                                              $
                                                                                                              (506
                                                                                                              )
                                                                                                              
                                                                                                              $
                                                                                                              30,441BALANCE
      – JUNE 30, 2008
                                                                                                              
                                                                                                              $
                                                                                                              14
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              13,567
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              (940)
                                                                                                              
                                                                                                              $
                                                                                                              (395
                                                                                                              )
                                                                                                              
                                                                                                              $
                                                                                                              20,071
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              (1,809
                                                                                                              )
                                                                                                              
                                                                                                              $
                                                                                                              (2,634
                                                                                                              )
                                                                                                              
                                                                                                              $
                                                                                                              27,874Net
      Income
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              248
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              248Other
      Comprehensive Income:Changes
      in Unrealized Gain
                                                                                                                on
      Securities Available-
                                                                                                                for-Sale,
      Net of Tax Effects
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              5,738
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              5,738RRP
      Shares Earned
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              126
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              -
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              126Stock
      Options Vested
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              29
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              29ESOP
      Compensation Earned
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              (7
                                                                                                              )
                                                                                                              
                                                                                                              
                                                                                                              29
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              22Dividends
      Declared
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              (149
                                                                                                              )
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              (149
                                                                                                              )Acquisition
      Treasury Stock
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              (49
                                                                                                              )
                                                                                                              
                                                                                                              
                                                                                                              --
                                                                                                              
                                                                                                              
                                                                                                              
                                                                                                              (49
                                                                                                              )BALANCE – DECEMBER 31, 2008
                                                                                                              
                                                                                                              $
                                                                                                              14
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              13,589
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              (911)
                                                                                                              
                                                                                                              $
                                                                                                              (269
                                                                                                              )
                                                                                                              
                                                                                                              $
                                                                                                              20,170
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              (1,858
                                                                                                              )
                                                                                                              
                                                                                                              $
                                                                                                              3,104
                                                                                                              
                                                                                                              
                                                                                                              $
                                                                                                              33,839
 
   
   3
  HOME
      FEDERAL BANCORP, INC. OF LOUISIANACONSOLIDATED
      STATEMENTS OF CASH FLOWS(Unaudited)Six
      Months EndedDecember
      31,2008
                
                
                2007(In
      Thousands)CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      Income
                
                $
                248
                
                
                $
                263Adjustments
      to Reconcile Net Income to NetCash
      Provided by Operating ActivitiesNet
      Amortization and Accretion on Securities
                
                
                (127
                )
                
                
                (110
                )Gain
      on Sale of Investments
                
                
                (33
                )
                
                
                (94
                )Amortization
      of Deferred Loan Fees
                
                
                (4
                )
                
                
                (13
                )Depreciation
      of Premises and Equipment
                
                
                26
                
                
                
                27ESOP
      Expense
                
                
                22
                
                
                
                28Stock
      Option Expense
                
                
                29
                
                
                
                32Recognition
      and Retention Plan Expense
                
                
                63
                
                
                
                86Deferred
      Income Tax
                
                
                (7
                )
                
                
                (11
                )Changes
      in Assets and LiabilitiesLoans
      Held-for-Sale  –  Originations
                
                
                (6,963
                )
                
                
                (8,725
                )Loans
      Held-for-Sale – Principal Repayments
                
                
                7,030
                
                
                
                9,438Accrued
      Interest Receivable
                
                
                (51
                )
                
                
                8Other
      Operating Assets
                
                
                27
                
                
                
                (101
                )Other
      Operating Liabilities
                
                
                90
                
                
                
                (23
                )Net Cash Provided by Operating Activities
                
                
                350
                
                
                
                805CASH
      FLOWS FROM INVESTING ACTIVITIESLoan
      Principal Collections (Originations and Purchases), Net
                
                
                70
                
                
                
                (2,803
                )Deferred
      Loan Fees Collected
                
                
                6
                
                
                
                8Acquisition
      of Premises and Equipment
                
                
                (6
                )
                
                
                (12
                )Activity
      in Available-for-Sale Securities:Proceeds
      from Sales of Securities
                
                
                2,035
                
                
                
                8,253Principal
      Payments on Mortgage-backed Securities
                
                
                4,626
                
                
                
                7,399Purchases
      of Securities
                
                
                (21,648
                )
                
                
                (9,320
                )Activity
      in Held-to-Maturity SecuritiesPrincipal
      Payments on Mortgage-Backed Securities
                
                
                64
                
                
                
                78Purchases
      of Securities
                
                
                (561
                )
                
                
                -Proceeds
      from Disposition of Foreclosed Real Estate
                
                
                42
                
                
                
                -Net Cash (Used in) Provided by Investing Activities
                
                
                (15,372
                )
                
                
                3,603
    4
  HOME
      FEDERAL BANCORP, INC. OF LOUISIANACONSOLIDATED
      STATEMENTS OF CASH FLOWS (Continued)(Unaudited)Six
      Months EndedDecember
      31,2008
                
                
                2007CASH
      FLOWS FROM FINANCING ACTIVITIES
                
                (In
      Thousands)Net
      Increase in Deposits
                
                
                332
                
                
                
                3,276Proceeds
      from Federal Home Loan Bank Advances
                
                
                25,200
                
                
                
                5,500Repayments
      of Advances from Federal Home Loan Bank
                
                
                (11,249
                )
                
                
                (1,935
                )Net
      Increase in Mortgage-Escrow Funds
                
                
                (117
                )
                
                
                (78
                )Dividends
      Paid
                
                
                (149
                )
                
                
                (147
                )Acquisition
      of Treasury Stock
                
                
                (49
                )
                
                
                (38
                )Stock
      Purchase Deposits Received
                
                
                (8,131
                )
                
                
                -Stock
      Purchase Deposits Refunded
                
                
                4,556
                
                
                
                -Net
      Cash Provided by Financing Activities
                
                
                10,393
                
                
                
                6,578NET
      (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
                
                
                (4,629
                )
                
                
                10,986CASH
      AND CASH EQUIVALENTS - BEGINNINGOF
      PERIOD
                
                
                7,363
                
                
                
                3,972CASH
      AND CASH EQUIVALENTS - END OF PERIOD
                
                $
                2,734
                
                
                $
                14,958SUPPLEMENTARY
      CASH FLOW INFORMATIONInterest
      Paid on Deposits and Borrowed Funds
                
                $
                1,969
                
                
                $
                1,973Income
      Taxes Paid
                
                
                -
                
                
                
                94Market
      Value Adjustment for Gain on SecuritiesAvailable-for-Sale
                
                
                8,694
                
                
                
                3,538NON-CASH
      INVESTING ACTIVITYReal
      Estate Acquired through Foreclosure
                
                $
                -
                
                
                $
                33
        5
  HOME
FEDERAL BANCORP, INC. OF LOUISIANA
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
   1.           SUMMARY
OF ACCOUNTING POLICIES
  Basis
of Presentation
  The
consolidated financial statements include the accounts of Home Federal Bancorp,
Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Savings and
Loan Association (the “Association”).  These
consolidated financial statements were prepared in accordance with instructions
for Form 10-Q and Regulation S-X and do not include information or footnotes
necessary for a complete presentation of financial condition, results of
operations, and cash flows in conformity with accounting principles generally
accepted in the United States of America. However, in the opinion of management,
all adjustments (consisting of normal recurring adjustments) necessary for a
fair presentation of the financial statements have been included. The results of
operations for the six month period ended December 31, 2008 is not necessarily
indicative of the results which may be expected for the fiscal year ending June
30, 2009.
  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 Statements of
Financial Condition and reported amounts of revenues and expenses during the
reporting period.  Actual results could differ from those
estimates.  Material estimates that are particularly susceptible to
significant change in the near term relate to the allowance for loan
losses.
  Nature
of Operations
  On
January 18, 2005, Home Federal Savings and Loan Association (the “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 Association.  In connection with the
reorganization, the Company sold 1,423,583 shares of its common stock in a
subscription and community offering at a price of $10.00 per
share.  The Company also issued 2,135,375 shares of common stock in
the reorganization to Home Federal Mutual Holding Company of Louisiana, or 63.2%
of our outstanding common stock at December 31, 2008.  The Association
is a federally chartered, stock savings and loan association and is subject to
federal regulation by the Federal Deposit Insurance Corporation and the Office
of Thrift Supervision.  Services are provided to its customers by
three offices, all of which are located in the City of Shreveport,
Louisiana.  The area served by the Association 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.
  Cash
and Cash Equivalents
  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.
  6
  HOME
FEDERAL BANCORP, INC. OF LOUISIANA
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
  Securities
  The
Company classifies its debt and equity investment securities into one of three
categories:  held-to-maturity, available-for-sale, or
trading.  Investments in nonmarketable equity securities and debt
securities, in which the Company has the positive intent and ability to hold to
maturity, are classified as held-to-maturity and carried at amortized
cost.  Investments in debt securities that are not classified as
held-to-maturity and marketable equity securities that have readily determinable
fair values are classified as either trading or available-for-sale
securities.  Securities that are acquired and held principally for the
purpose of selling in the near term are classified as trading
securities.  Investments in securities not classified as trading or
held-to-maturity are classified as available-for-sale.
  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 interest method 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 the Companyto 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
Held For Sale
  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 nonrefundable 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.  Interest income on contractual loans receivable
is recognized on the accrual method.  Unearned discount on property
improvement and automobile loans is deferred and amortized on the interest
method over the life of the loan.
  Allowance
for Loan Losses
  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.
   7
  Allowance
for Loan Losses (Continued)
  The
allowance for loan losses is evaluated on a regular basis by management and is
based upon management’s periodic review of the collectibility of the loans in
light of historical experience, the nature and volume of the loan portfolio,
adverse situations that may affect the borrower’s ability to repay, estimated
value of the underlying collateral and prevailing economic
conditions.  The evaluation is inherently subjective as it requires
estimates that are susceptible to significant revision as more information
becomes available.
  A loan is
considered impaired when, based on current information or events, it is probable
that the Association will be unable to collect the scheduled payments of
principal and interest when due according to the contractual terms of the loan
agreement.  When a loan is impaired, the measurement of such
impairment is based upon the fair value of the collateral of the
loan.  If the fair value of the collateral is less than the recorded
investment in the loan, the Association will recognize the impairment by
creating a valuation allowance with a corresponding charge against
earnings.
  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.
  Off-Balance
Sheet Credit Related Financial Instruments
  In the
ordinary course of business, the Company has entered into commitments to extend
credit.  Such financial instruments are recorded when they are
funded.
  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.
  Income
Taxes
  Deferred
income tax assets and liabilities are determined using the liability (or balance
sheet) method.  Under this method, the net deferred tax asset or
liability is determined based on the tax effects of the temporary differences
between the book and tax bases of the various assets and liabilities and gives
current recognition to changes in tax rates and laws.
  Comprehensive
Income
  Accounting
principles generally accepted in the United States of America 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 Statements of
Financial Condition, such items, along with net income, are components of
comprehensive income.
    8
  HOME
FEDERAL BANCORP, INC. OF LOUISIANA
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
  2.      EARNINGS
PER SHARE
  Basic
earnings per common share is computed based on the weighted average number of
shares outstanding.  Diluted earnings per share is computed based on
the weighted average number of shares outstanding and common share equivalents
that would arise from the exercise of dilutive securities. Earnings per share
for the three and six month periods ended December 31, 2008 and 2007were
calculated as follows:
  Three
      Months Ended December 31, 2008
                
                
                Three
      Months Ended December 31, 2007Basic
                
                
                Diluted
                
                
                Basic
                
                
                DilutedNet
      Income
                
                $
                139,181
                
                
                $
                139,181
                
                
                $
                150,247
                
                
                $
                150,247Weighted
      average shares outstanding
                
                
                3,258,275
                
                
                
                3,258,275
                
                
                
                3,243,093
                
                
                
                3,243,093Effect
      of unvested common stock awards
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                3,233Adjusted
      weighted average shares used in
                  earnings
      per share computation
                
                
                3,258,275
                
                
                
                3,258,275
                
                
                
                3,243,093
                
                
                
                3,246,326Earnings
      per share
                
                $
                0.04
                
                
                $
                0.04
                
                
                $
                0.05
                
                
                $
                0.05
   Six
      Months Ended
                    December
      31, 2008
                
                
                Six
      Months Ended
                    December
      31, 2007Basic
                
                
                Diluted
                
                
                Basic
                
                
                DilutedNet
      Income
                
                $
                247,778
                
                
                $
                247,778
                
                
                $
                262,575
                
                
                $
                262,575Weighted
      average shares outstanding
                
                
                3,256,074
                
                
                
                3,256,074
                
                
                
                3,239,689
                
                
                
                3,239,689Effect
      of unvested common stock awards
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                3,978Adjusted
      weighted average shares used in
                  earnings per share computation
                
                
                3,256,074
                
                
                
                3,256,074
                
                
                
                3,239,689
                
                
                
                3,243,667Earnings
      per share
                
                $
                0.08
                
                
                $
                0.08
                
                
                $
                0.08
                
                
                $
                0.08
  For the
three months ended December 31, 2008 and 2007, there were weighted-average
outstanding options to purchase 169,741 and 170,857 shares, respectively, and
for the six months ended December 31, 2008 and 2007, there were weighted-average
outstanding options to purchase 169,861 and 170,857 shares, respectively, at
$9.85 per share. For the three and six months ended December 31, 2008, the
options were not included in the computation of diluted earnings per share
because the options' exercise price was greater than the average market value
price of the common shares during the periods.
    9
 HOME
FEDERAL BANCORP, INC. OF LOUISIANA
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 3.       RECOGNITION
AND RETENTION PLAN
  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”) for the benefit of
directors, officers, and employees 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
totals 69,756 shares.  During fiscal 2006, the Company purchased
69,756 shares at an aggregate cost of $688,439.  As the shares 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.  During the six months ended
December 31, 2008, 12,781 shares vested and were released from the Recognition
Plan Trust and 27,504 shares remained in the Recognition Plan Trust at December
31, 2008.
  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.  Generally, 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, the recipient shall forfeit the right
to any shares subject to the award that have not been earned.  In the
case of death or disability of the recipient or a change in control of the
Company, the Recognition Plan awards will be vested and shall be distributed as
soon as practicable thereafter.  As of December 31, 2008, 2,290 awards
had been forfeited and vesting was accelerated on 2,270 shares as a result of
the death of two of the participants.
  The
present 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 August 18,
2005, the date on which the Recognition Plan shares were granted.  The
cost is being recognized over five years.
  4.      STOCK
OPTION PLAN
  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 key employees.  The
aggregate number of shares of common stock reserved for the issuance under the
Option Plan totaled 174,389.  Both incentive stock options and
non-qualified stock options may be granted under the Option Plan.
  On August
18, 2005, the Company granted 174,389 options to directors and key
employees.  Under the Option Plan, the exercise price of each option
cannot be less than the fair market value of the underlying common stock as of
the date of the option grant, which was $9.85, and the maximum term is ten
years.  Incentive stock options and non-qualified stock options
granted under the Option Plan become vested and exercisable at a rate of 20% per
year over five years, commencing one year from the date of the grant, with an
additional 20% vesting on each successive anniversary of the date the option was
granted.  No vesting shall occur after an employee’s employment or
service as a director is terminated.  As of December 31, 2008, 5,099
stock options had been forfeited and are available for future
grant.  In the event of the death or disability of an employee or
director or change in control of the Company, the unvested options shall become
vested and exercisable.  The Company accounts for the Option Plan
under the guidance of SFAS No. 123(R).
  10
  HOME
FEDERAL BANCORP, INC. OF LOUISIANA
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 5.      RECENT
ACCOUNTING PRONOUNCEMENTS
  In
September 2006, the FASB issued SFAS No. 157, Fair Value
Measurements.  This Statement defines fair value, establishes a
framework for measuring fair value in generally accepted accounting principles,
and expands disclosures about fair value measurements.  This Statement
is effective for financial statements issued for fiscal years beginning after
November 15, 2007.
  In
September 2006, the FASB issued SFAS No. 158, Employers’
Accounting for Defined Benefit Pension and Other Postretirement Plans (as
amended).  This Statement improves financial reporting by
requiring an employer to recognize the overfunded or underfunded status of a
defined benefit postretirement plan (other than a multiemployer plan) as an
asset or liability in its statement of financial position and to recognize
changes in that funded status in the year in which the changes occur through
comprehensive income.  This Statement also requires an employer to
measure the funded status of a plan as of the date of its year-end statement of
financial position.  An employer with publicly traded equity
securities shall initially apply the requirement to recognize the funded status
of a benefit plan as of the end of the fiscal year ending after December 31,
2006.  The requirement to measure plan assets and benefit obligations
as of the date of the employer’s fiscal year-end statement of financial position
is effective for fiscal years ending after December 31, 2008.
  In
February 2007, the FASB issued SFAS No. 159, The Fair Value
Option for Financial Assets and Financial Liabilities (as
amended).  This Statement permits entities to choose to measure
many financial instruments and certain other items at fair value.  The
objective is to provide entities with the opportunity to mitigate volatility in
reported earnings caused by measuring related assets and liabilities differently
without having to apply complex hedge accounting provisions.  This
Statement is effective as of the beginning of an entity’s first fiscal year that
begins after November 15, 2007.
  In
December 2007, the FASB issued SFAS 141(R). Business
Combinations.  SFAS 141 (R) will impact how entities apply the
acquisition method to business combinations.  Significant changes to
how the Company accounts for business combinations under this Statement include
1) the acquisition date will be the date the acquirer obtains control, 2) all
identifiable assets acquired, liabilities assumed, and noncontrolling interests
in the acquiree will be stated at fair value on the acquisition date, 3) assets
or liabilities arising from noncontractual contingencies will be measured at the
acquisition date fair value only if it is more likely than not that they meet
the definition of an asset or liability on the acquisition date, 4) adjustments
subsequently made to the provisional amounts recorded on the acquisition date
will be made retroactively during a measured period not to exceed one year, 5)
acquisition-related restructuring costs that do not meet the criteria in SFAS
146, Accounting for Cost Associated with Exit or Disposal Activities, will be
expensed as incurred, transaction costs will be expensed as incurred, 7)
reversals of deferred income tax valuation allowances and income tax
contingencies will be recognized in earnings subsequent to the measurement
period, and 8) the allowance for loan loses of an acquiree will not be permitted
to the recognized by the acquirer.  Additionally, SFAS 141(R) will
require additional disclosures regarding subsequent changes to
acquisition-related contingencies, contingent consideration, noncontrolling
interests, acquisition-related transaction costs, fair values and cash flows not
expected to be collected for acquired loans, and goodwill
valuation.
  The
Company will be required to apply SFAS 141(R) prospectively to all business
combinations completed on or after July 1, 2009.  Early adoption is
not permitted.  For business combinations with an acquisition date
before the effective date, the provisions of SFAS 141(R) will apply to the
subsequent accounting for deferred income tax valuation allowances and income
tax contingencies and will require any changes in those amounts to be recorded
in earnings.
  11
 HOME
FEDERAL BANCORP, INC. OF LOUISIANA
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
  In
December 2007, the FASB issued SFAS No. 160, Noncontrolling
Interests in Consolidated Financial Statements (an amendment of ARB No.
51).  This Statement was issued to improve the relevance,
comparability, and transparency of the financial information that a reporting
entity provides in its consolidated financial statements.  This
Statement is effective for fiscal years, and interim periods with those fiscal
years, beginning on or after December 31, 2008.
  In March
2008, the FASB issued SFAS No. 161, Disclosures about
Derivative Instruments and Hedging Activities (an amendment of FASB
Statement No. 133).  This Statement requires enhanced disclosures
about an entity's derivative and hedging activities and thereby improves the
transparency of financial reporting.  This Statement is effective for
financial statements issued for fiscal years and interim periods beginning after
November 15, 2008, with early application encouraged.  This Statement
encourages, but does not require, comparative disclosures for earlier periods at
initial adoption.
  In May
2008, the FASB issued SFAS No. 162, The Hierarchy of
Generally Accepted Accounting Principles.This Statement
identifies the source of accounting principles and the framework for selecting
the principles to be used in the preparation of financial statements of
nongovernmental entities that are presented in conformity with generally
accepted accounting principles in the United States (the GAAP
hierarchy).  This Statement is effective 60 days following the SEC's
approval of the PCAOB amendments to AU Section 411, The Meaning of
Present Fairly in Conformity with Generally Accepted Accounting
Principles.
  The above
pronouncements are not expected to have a significant impact on the consolidated
financial statements of the Company.
             12
  ITEM 2 -
              MANAGEMENT’S
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATIONS
  General
  The
Company was formed by the Association in connection with the Association’s
reorganization and commenced operations on January 18, 2005.  The
Company’s results of operations are primarily dependent on the results of the
Association, which became a wholly owned subsidiary upon completion of the
reorganization.  The Association’s results of operations depend, to a
large extent, on net interest income, which is the difference between the income
earned on its loan and investment portfolios and the cost of funds, consisting
of the interest paid on deposits and borrowings.  Results of
operations are also affected by provisions for loan losses and loan sale
activities.  Non-interest expense principally consists of compensation
and employee benefits, office occupancy and equipment expense, data processing
and other expense.  Our results of operations are also significantly
affected by general economic and competitive conditions, particularly changes in
interest rates, government policies and actions of regulatory
authorities.  Future changes in applicable law, regulations or
government policies may materially impact our financial condition and results of
operations.
  Critical
Accounting Policies
  Allowance for Loan
Losses. The Company has identified the calculation of the allowance for
loan losses as a critical accounting policy, due to the higher degree of
judgment and complexity than its other significant accounting
policies.  Provisions for loan losses are based upon management’s
periodic valuation and assessment of the overall loan portfolio and the
underlying collateral, trends in non-performing loans, current economic
conditions and other relevant factors in order to maintain the allowance for
loan losses at a level believed by management to represent all known and
inherent losses in the portfolio that are both probable and reasonably
estimable.  Although management uses the best information available,
the level of the allowance for loan losses remains an estimate which is subject
to significant judgment and short-term change.
  Income Taxes.Deferred income tax assets and liabilities are determined using the
liability (or balance sheet) method.  Under this method, the net
deferred tax asset or liability is determined based on the tax effects of the
temporary differences between the book and tax bases of the various assets and
liabilities and gives current recognition to changes in tax rates and
laws.  The realization of our deferred tax assets principally depends
upon our achieving projected future taxable income.  We may change our
judgments regarding future profitability due to future market conditions and
other factors.  We may adjust our deferred tax asset balances if our
judgments change.
  Discussion
of Financial Condition Changes from June 30, 2008 to December 31,
2008
  At
December 31, 2008, total assets amounted to $155.6 million, compared to $137.7
million at June 30, 2008, an increase of $17.9 million, or
13.0%.  This increase was primarily due to an increase in investment
securities of $24.3 million, or 24.8%, partially offset by a decrease in cash
and cash equivalents of $4.6 million, or 62.9%, and a decrease in the Company’s
deferred tax asset of $1.7 million.
  The
increase in investment securities was primarily due to the acquisition of
securities funded by advances from the Federal Home Loan Bank, combined with an
increase in the overall fair market value of the securities
portfolio.
  The
Company’s total liabilities amounted to $121.7 million at December 31, 2008, an
increase of $11.9 million, or 10.8%, compared to total liabilities of $109.8
million at June 30, 2008. This increase was primarily due to increases in
advances from the Federal Home Loan Bank of $14.0 million, or 52.0%, deferred
tax liability of $1.4 million, and deposits of $333,000, or
0.4%.  These increases were partially offset by a $3.6 million
decrease in the stock purchase deposit escrow.
  13
 MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
   Stockholders’
equity increased $5.9 million, or 21.4%, to $33.8 million at December 31, 2008
compared to $27.9 million at June 30, 2008.  This increase was
primarily the result of the change in the Company’s accumulated other
comprehensive income associated with securities available-for-sale of $5.7
million, the recognition of net income of $248,000 for the six months ended
December 31, 2008, and the distribution of shares associated with the Company’s
Recognition and Retention Plan of $126,000.  These increases were
offset by dividends of $149,000 paid during the six months ended December 31,
2008, and the acquisition of treasury shares of $49,000.
  The
Association is required to meet minimum capital standards promulgated by the
Office of Thrift Supervision (“OTS”).  At December 31, 2008 Home
Federal Savings and Loan’s regulatory capital was well in excess of the minimum
capital requirements.
  Comparison
of Operating Results for the Three and Six Month Periods Ended December 31, 2008
and 2007
  General
  Net
income amounted to $139,000 for the three months ended December 31, 2008
compared to $151,000for the
same period in 2007, a decrease of $12,000, or 7.9%.  The decrease was
primarily due to a $72,000 decrease in gain on sale of investments, and a net
increase in non-interest expense and income taxes of $42,000, partially offset
by an increase of $102,000 in net interest income.
  For the
six months ended December 31, 2008, net income amounted to $248,000, compared to
$263,000for the
same period in 2007, a decrease of $15,000, or 5.7%.  The decrease was
primarily due to a $67,000 decrease in non-interest income, a net increase in
non-interest expense and income taxes of $159,000, partially offset by an
increase of $211,000 in net interest income.  The increase in
non-interest expense was primarily attributable to $133,000 in expenditures for
merger and stock issuance costs.  The increase in net interest income
was primarily attributable to an increase of $361,000 in interest income
generated from mortgage-backed securities.
  Net
Interest Income
  Net
interest income for the three months ended December 31, 2008 was $880,000, an
increase of $102,000, or 13.1%, in comparison to the three months ended December
31, 2007.  This increase was primarily due to an increase of $92,000
in total interest income and a decrease of $10,000 in the Company’s cost of
funds.  The increase in total interest income was primarily due to an
increase in interest income generated from mortgage-backed securities of
$204,000, partially offset by decreases in interest income in loans, investment
securities and other interest-earning assets of $20,000, $47,000 and $45,000,
respectively.
  Net
interest income for the six months ended December 31, 2008, was $1.8 million, an
increase of $211,000, or 13.7%, in comparison to the six months ended December
31, 2007.  This increase was primarily due to an increase of $215,000
in total interest income, partially offset by an increase of $4,000 in total
interest expense.  The increase in total interest income was primarily
due to an increase in interest income generated from mortgage-backed securities
of $361,000, partially offset by decreases in interest income generated from
loans, investment securities and other interest-earning assets of $7,000,
$73,000 and $66,000, respectively.
  14
  MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 The
Company’s average interest rate spread was 1.69% and 1.74% for the three and six
months ended December 31, 2008, compared to 1.71% and 1.66% for the three and
six months ended December 31, 2007.  The Company’s net interest margin
was 2.42% and 2.48% for the three and six months ended December 31, 2008,
compared to 2.59% and 2.55% for the three and six months ended December 31,
2007.  The decrease in net interest margin is attributable primarily
to the increase in interest expense on interest-bearing liabilities and average
cost associated with deposits and advances from the Federal Home Loan Bank.
While the interest rate spread remained relatively stable, net interest income
increased primarily due to the increase in volume of average interest earning
assets.
  Provision
for Losses on Loans
  Based on
an analysis of historical experience, the volume and type of lending conducted
by Home Federal, the status of past due principal and interest payments, general
economic conditions, particularly as such conditions relate to Home Federal’s
market area and other factors related to the collectibility of Home Federal’s
loan portfolio, no provisions for loan losses were made during the three and six
months ended December 31, 2008 or 2007.  The Association’s allowance
for loan losses was $225,629, or 0.78% of total loans, at December 31, 2008
compared to $235,000, or 0.81% of total loans at December 31,
2007.  At December 31, 2008, Home Federal had no non-performing loans
or other non-performing assets. Home Federal had non-performing loans of $19,000
and other non-performing assets of $33,000 at December 31,
2007.  There can be no assurance that the loan loss allowance will be
sufficient to cover losses on non-performing assets in the future.
  Non-interest
Income
  Total
non-interest income amounted to $10,000 for the three months ended December 31,
2008, compared to $82,000 for the same period in 2007.  The decrease
was primarily due to a decrease of $72,000 in gain on sale of
investments.
  Total
non-interest income amounted to $53,000 for the six months ended December 31,
2008, compared to $120,000 for the same period in 2007.  The decrease
was primarily due to decreases in gain on sale of securities and other
income.
  Non-interest
Expense
  Total
non-interest expense increased $46,000, or 7.3%, for the three months ended
December 31, 2008 compared to the prior year period.  The increase in
non-interest expense was primarily due to an increase in compensation and
benefits expense of $13,000, or 3.3%, over the prior year period and an increase
in other operating expenses of $46,000, or 90.2%, partially offset by a decrease
of $16,000, or 17.6%, in audit and professional fees.
  Total
non-interest expense increased $165,000, or 13.1%, for the six months ended
December 31, 2008 compared to the prior year period.  The increase was
primarily due to an increase of $16,000, or 2.0%, in compensation and benefits
expense, an increase in other operating expense of $31,000, and the recognition
of $133,000 in merger and stock issuance costs, offset by a decrease in audit
and professional fees of $22,000.
  15
 MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
  On August
11, 2008, the board of directors of Home Federal Bancorp, Inc. of Louisiana
terminated the stock offering in connection with the conversion of Home Federal
Mutual Holding Company of Louisiana and the acquisition of a local financial
institution that was contingent on the completion of the offering. The
recognition of merger and stock issuance expense for the six-months ended
December 31, 2008 was a result of this action.
  The
increase in compensation and benefits expense was a result of normal
compensation increases including stock options and recognition and retention
plan expense.  Compensation expense recognized by the Company for its
Stock Option and Recognition and Retention Plans amounted to $14,000 and
$31,000, respectively, for the three months ended December 31, 2008 and 2007,
and $29,000 and $63,000, respectively, for the six months ended December 31,
2008 and 2007.
  Effective
January 1, 2006, the Company, through its subsidiary Home Federal Savings and
Loan Association, became subject to the Louisiana bank shares
tax.  This tax is assessed on the Association’s equity and
earnings.  For the three and six months ended December 31, 2008, the
Company recognized franchise and bank shares tax expense of $37,000 and $75,000,
respectively.
  Income
Taxes
  Income
taxes amounted to $72,000 and $76,000 for the three months ended December 31,
2008 and 2007, respectively, resulting in effective tax rates of 34.0% and
33.5%, respectively.Income taxes amounted to $128,000 and $134,000 for
the six months ended December 31, 2008 and 2007, respectively, resulting in an
effective tax rate of 34.0% and 33.7%, respectively.
  Liquidity
and Capital Resources
  Home
Federal Savings and Loan maintains levels of liquid assets deemed adequate by
management.  The Association adjusts its liquidity levels to fund
deposit outflows, repay its borrowings and to fund loan
commitments.  Home Federal Savings and Loan also adjusts liquidity as
appropriate to meet asset and liability management objectives.
  Home
Federal Savings and Loan’s primary sources of funds are deposits, amortization
and prepayment of loans and mortgage-backed securities, maturities of investment
securities and other short-term investments, loan sales and earnings and funds
provided from operations.  While scheduled principal repayments on
loans and mortgage-backed securities are a relatively predictable source of
funds, deposit flows and loan prepayments are greatly influenced by general
interest rates, economic conditions and competition.  The Association
sets the interest rates on its deposits to maintain a desired level of total
deposits.  In addition, Home Federal Savings and Loan invests excess
funds in short-term interest-earning accounts and other assets, which provide
liquidity to meet lending requirements.  Home Federal Savings and
Loan’s deposit accounts with the Federal Home Loan Bank of Dallas amounted to
$734,000 at December 31, 2008.
  A
significant portion of Home Federal Savings and Loan’s liquidity consists of
securities classified as available-for-sale and cash and cash
equivalents.  Home Federal Savings and Loan’s primary sources of cash
are net income, principal repayments on loans and mortgage-backed securities and
increases in deposit accounts.  If Home Federal Savings and Loan
requires funds beyond its ability to generate them internally, borrowing
agreements exist with the Federal Home Loan Bank of Dallas which provide an
additional source of funds.  At December 31, 2008, Home Federal
Savings and Loan had $40.8 million in advances from the Federal Home Loan Bank
of Dallas.
  16
 MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
  At
December 31, 2008, Home Federal Savings and Loan had outstanding loan
commitments of $1.2 million to originate loans.  At December 31, 2008,
certificates of deposit scheduled to mature in less than one year, totaled $39.7
million.
  Based on
prior experience, management believes that a significant portion of such
deposits will remain with us, although there can be no assurance that this will
be the case. In addition, the cost of such deposits could be significantly
higher upon renewal, in a rising interest rate environment.  Home
Federal Savings and Loan intends to utilize its high levels of liquidity to fund
its lending activities.  If additional funds are required to fund
lending activities, Home Federal Savings and Loan intends to sell its securities
classified as available-for-sale as needed.
  Home
Federal Savings and Loan is required to maintain regulatory capital sufficient
to meet tangible, core and risk-based capital ratios of at least 1.5%, 3.0% and
8.0%, respectively.  At December 31, 2008, Home Federal Savings and
Loan exceeded each of its capital requirements with ratios of 19.11%, 19.11% and
69.45%, respectively.
  In
connection with the Association’s reorganization to the mutual holding company
form of organization, Home Federal Bancorp, Inc., the parent holding company of
the Association, sold 1,423,583 shares of its common stock in a subscription and
community offering, which was completed on January 18, 2005 at a price of $10.00
per share.  This includes 113,887 shares acquired by the Association’s
Employee Stock Ownership Plan.  The Company has invested 50% of the
net proceeds from the reorganization in the Association.
  Off-Balance
Sheet Arrangements
  At
December 31, 2008, the Company did not have any off-balance sheet arrangements,
as defined by Securities and Exchange Commission rules.
  Impact of
Inflation and Changing Prices
  The
financial statements and related financial data presented herein have been
prepared in accordance with instructions to Form 10-Q, which require the
measurement of financial position and operating results in terms of historical
dollars, without considering changes in relative purchasing power over time due
to inflation.
  Unlike
most industrial companies, virtually all of the Association’s assets and
liabilities are monetary in nature.  As a result, interest rates
generally have a more significant impact on a financial institution’s
performance than does the effect of inflation.
   17
 MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
 Forward-Looking
Statements
  This Form
10-Q contains certain forward-looking statements and information relating to the
Company that are based on the beliefs of management as well as assumptions made
by and information currently available to management.  In addition, in
those and other portions of this document, the words “anticipate,” “believe,”
“estimate,” “except,” “intend,” “should” and similar expressions, or the
negative thereof, as they relate to the Company or the Company’s management, are
intended to identify forward-looking statements.  Such statements
reflect the current views of the Company with respect to future looking events
and are subject to certain risks, uncertainties and
assumptions.  Should one or more of these risks or uncertainties
materialize or should underlying assumptions prove incorrect, actual results may
vary from those described herein as anticipated, believed, estimated, expected
or intended.  The Company does not intend to update these
forward-looking statements.
             18
  ITEM
3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  Not applicable.
  ITEM
4 - CONTROLS AND PROCEDURES
  See Item 4T below.
  ITEM
4T - CONTROLS AND PROCEDURES
  Evaluation of Disclosures Controls and
Procedures.Under the supervision and
with the participation of our management, including our Chief Executive Officer
and our principal financial officer, we evaluated the effectiveness of the
design and operation of our disclosure controls and procedures (as defined in
Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of
the end of the period covered by this report. Based upon that evaluation, the
Chief Executive Officer and the principal financial officer have concluded that,
as of the end of the period covered by this report, our disclosure controls and
procedures are effective to ensure that information required to be disclosed in
the reports that the Company files or submits under the Securities Exchange Act
of 1934, is recorded, processed, summarized and reported within the
applicable time periods specified by the Securities and Exchange Commission’s
rules and forms.
  Changes in Internal
Control over Financial Reporting.  There has been no change in
the Company’s internal control over financial reporting during the Company’s
most recent fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the Company’s internal control over financial
reporting.
              19
  PART
II
   ITEM
1. LEGAL PROCEEDINGS
  The
Company is not involved in any pending legal proceedings other than routine
legal proceedings occurring in the ordinary course of business, which involve
amounts in the aggregate believed by management to be immaterial to the
financial condition of the Company.
  ITEM
1A. RISK FACTORS
  Not applicable.
  ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
   (a) Not
applicable.
  (b) Not
applicable.
  (c)          Purchases
of Equity Securities
  The
following table represents the repurchasing activity of the stock repurchase
program during the second quarter of fiscal 2009:
  Period
                
                Total
      Number of Shares Purchased
                
                
                Average
      Price Paid per Share
                
                
                Total
      Number of Shares Purchased as Part of Publicly Announced Plans or
      Programs
                
                
                Maximum
      Number of Shares that May Yet Be Purchased Under the Plans or
      ProgramsMonth
      #1 October 1, 2008 – October 31, 2008
                
                
                -
                
                
                $
                -
                
                
                
                -
                
                
                
                119,313Month
      #2 November 1, 2008 – November 30, 2008
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                119,313Month
      #3 December 1, 2008 – December 31, 2008
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                119,313Total
                
                
                -
                
                
                $
                -
                
                
                
                -
                
                
                
                119,313
  Notes
to this table:
  (a)
              On
      August 26, 2008, the Company issued a press release announcing that the
      Board of Directors authorized a stock repurchase program (the "program")
      on August 13, 2008.
  (b)
              The
      Company was authorized to repurchase 10% or 125,000 of the outstanding
      shares other than shares held by Home Federal Mutual Holding
      Company.
  (c)
              The
      program does not have an expiration
date.
  20
  ITEM
3. DEFAULTS UPON SENIOR SECURITIES
  Not
applicable.
  ITEM
4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  On November 12, 2008,
the Company held an Annual Meeting of Shareholders to obtain approval for two
proxy proposals submitted on behalf of the Company’s Board of
Directors.  Shareholders of record as of September 30, 2008, received
proxy materials and were considered eligible to vote on these
proposals.  The following is a brief summary of each proposal and the
result of the vote.
  For
                
                
                Withhold
                
                
                Against
                
                
                Abstain1.
                
                To
      elect three directors for a three year term expiringin
      2011:David
      A. Herndon III
                
                
                3,207,944
                
                
                
                58,537
                
                
                
                --
                
                
                
                --Woodus
      K. Humphrey
                
                
                3,207,944
                
                
                
                58,537
                
                
                
                --
                
                
                
                --Mark
      Malloy Harrison
                
                
                3,207,944
                
                
                
                58,537
                
                
                
                --
                
                
                
                --2.
                
                To
      ratify the appointment of the Company’s independentregistered
      public accounting firm:
                
                
                3,260,540
                
                
                
                --
                
                
                
                5,000
                
                
                
                941
  ITEM
5. OTHER INFORMATION
  Not
applicable.
  ITEM
6. EXHIBITS
  The following
Exhibits are filed as part of this report:
  No.
                
                Description31.1
                
                Rule
      13a-14(a)/15d-14(a) Certification of Chief Executive
    Officer31.2
                
                Rule
      13a-14(a)/15d-14(a) Certification of Chief Financial
    Officer32.0
                
                Certification
      Pursuant to 18 U.S.C Section
1350
    21
  SIGNATURES
   Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
  HOME FEDERALBANCORP, INC. OF
                                LOUISIANADate:February 13,
      2009
                              By:
                              /s/Daniel R.
      HerndonDaniel
      R. HerndonPresident and Chief Executive OfficerDate:February 13,
      2009
                              By:
                              /s/Clyde D.
      PattersonClyde
      D. PattersonExecutive Vice President(principal financial
officer)