| [X] | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|-----|---------------------------------------------------------------------------------------------------|

| [  ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------------|----------------------------------------------------------------------------------------------------|

|   | For      the transition period from _____ to_____ |
|--------|---------------------------------------------------|

| HOME FEDERAL BANCORP,      INC.   |
|---------------------------------------------|

|   | Maryland                        |   | 68-0666697               |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|   |  (State or      other jurisdiction of incorporation                                                                                           |   |  (I.R.S.      Employer   |   |
|   |  or      organization)                                                                                                                   |   |   I.D.      Number) |   |
|   |                                                                                                                                               |   |                          |   |
|   | 500      12thAvenue      South, Nampa, Idaho                                                                                             |   | 83651                         |   |
|   | (Address of      principal executive offices)                                                                                            |   | (Zip      Code)          |   |

|   |                                                                 |                                  |   |   |
|--------|----------------------------------------------------------------------|---------------------------------------|--------|--------|
|   | Registrant’s      telephone number, including area code:  | (208)      466-4634    |   |

|   | Large accelerated      filer       |  [   ]   | Accelerated      filer           | [X]                   |
|--------|----------------------------------------------|----------------------------------------|--------------------------------------------|----------------------------|
|   | Non-accelerated      filer    |  [   ]        | Smaller reporting      company   | [   ]  |

----

| Item 1      -   | Financial      Statements  |   |
|---------------------------|---------------------------------|--------|

|   |                                                                                                                                                                   | Page  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|   | Consolidated      Balance Sheets                                                                                                                                  | 1          |
|   | Consolidated      Statements of Operations                                                                                                                        | 2     |
|   | Consolidated      Statements of Changes in Stockholders' Equity and                   Comprehensive Income | 3          |
|   | Consolidated      Statements of Cash Flows                                                                                                                             | 4          |
|   | Selected      Notes to Interim Consolidated Financial Statements                                                                                                       | 6          |
|   |                                                                                                                                                                   |       |

| Item      2 -                    | Management’s      Discussion and Analysis of Financial Condition         and Results of Operations |  12 |
|----------------------------------|-------------------------------------------------------------------------------------------------------------------------|----------|
|                             |                                                                                                                    |     |
| Item      3 -                    | Quantitative      and Qualitative Disclosures About Market Risk                                                         | 29       |
|                             |                                                                                                                    |     |
| Item      4 -                    | Controls      and Procedures                                                                                            | 29       |
|                             |                                                                                                                    |     |
| PART      II - OTHER INFORMATION |                                                                                                                    |
|                             |                                                                                                                    |     |
| Item      1 -                    | Legal      Proceedings                                                                                                  | 30       |
|                             |                                                                                                                    |     |
| Item      1A - Risk Factors      | 30                                                                                                                      |
|                             |                                                                                                                    |     |
| Item      2 -                    | Unregistered      Sales of Equity Securities and Use of Proceeds                                                        | 30       |
|                             |                                                                                                                    |     |
| Item      3 -                    | Defaults      Upon Senior Securities                                                                                    | 30       |
|                             |                                                                                                                    |     |
| Item      4 -                    | Submission      of Matters to a Vote of Security Holders                                                                | 30       |
|                             |                                                                                                                    |     |
| Item      5 -                    | Other      Information                                                                                                  | 30       |
|                             |                                                                                                                    |     |
| Item      6 -                    | Exhibits                                                                                                                | 31       |
|                             |                                                                                                                    |     |
| SIGNATURES                       | 32                                                                                                                      |

----

| HOME      FEDERAL BANCORP, INC. AND SUBSIDIARYCONSOLIDATED      BALANCE SHEETS(In      thousands, except share data) (Unaudited) |   | June      30, 2009 |    |   | September      30, 2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
|                                                                                                                             |   |                    |    |   |                    |   |
| ASSETS                                                                                                                           |   |                    |    |   |                    |   |
| Cash      and amounts due from depository institutions                                                                           |   | $                       | 26,778  |   |                    | $      | 23,270 |   |
| Certificate      of deposit in correspondent bank                                                                                |   |                    | -       |   |                    |   | 5,000 |   |
| Mortgage-backed      securities available for sale, at fair value                                                                |   |                    | 169,716 |   |                    |   | 188,787 |   |
| Loans      receivable, net of allowance for loan losses      of  $8,266                                                |   |                    |    |   |                    |   |   |   |
| and      $4,579                                                                                                                  |   |                    | 418,198 |   |                    |   | 459,813 |   |
| Loans      held for sale                                                                                                         |   |                    | 5,064   |   |                    |   | 2,831 |   |
| Accrued      interest receivable                                                                                                 |   |                    | 2,209   |   |                    |   | 2,681 |   |
| Property      and equipment, net                                                                                                 |   |                    | 17,057  |   |                    |   | 15,246 |   |
| Mortgage      servicing rights, net                                                                                              |   |                    | -       |   |                    |   | 1,707 |   |
| Bank      owned life insurance                                                                                                   |   |                    | 11,906  |   |                    |   | 11,590 |   |
| Federal      Home Loan Bank of Seattle (“FHLB”) stock, at cost                                                       |   |                    | 9,591   |   |                    |   | 9,591 |   |
| Real      estate and other property owned                                                                                        |   |                    | 8,614   |   |                    |   | 650 |   |
| Deferred      tax asset                                                                                                          |   |                    | 1,853   |   |                    |   | 1,770 |   |
| Other      assets                                                                                                                |   |                    | 1,757   |   |                    |   | 2,134 |   |
| TOTAL      ASSETS                                                                                                                |   | $                       | 672,743 |   |                    | $      | 725,070 |   |
|                                                                                                                             |   |                    |    |   |                    |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                  |   |                    |    |   |                    |   |   |   |
|                                                                                                                             |   |                    |    |   |                    |   |   |   |
| LIABILITIES                                                                                                                      |   |                    |    |   |                    |   |   |   |
| Deposit      accounts:                                                                                                           |   |                    |    |   |                    |   |   |   |
| Noninterest-bearing      demand deposits                                                                                         |   | $                       | 39,931  |   |                    | $      | 41,398 |   |
| Interest-bearing      demand deposits                                                                                            |   |                    | 131,202 |   |                    |   | 127,714 |   |
| Savings      deposits                                                                                                            |   |                    | 35,880  |   |                    |   | 26,409 |   |
| Certificates      of deposit                                                                                                     |   |                    | 168,983 |   |                    |   | 177,404 |   |
|     Total      deposit accounts                                                                              |   |                    | 375,996 |   |                    |   | 372,925 |   |
| Advances      by borrowers for taxes and insurance                                                                               |   |                    | 589     |   |                    |   | 1,386 |   |
| Interest      payable                                                                                                            |   |                    | 370     |   |                    |   | 552 |   |
| Deferred      compensation                                                                                                       |   |                    | 5,219   |   |                    |   | 5,191 |   |
| FHLB      advances and other borrowings                                                                                          |   |                    | 88,891  |   |                    |   | 136,972 |   |
| Other      liabilities                                                                                                           |   |                    | 3,030   |   |                    |   | 2,857 |   |
| Total      liabilities                                                                                                           |   |                    | 474,095 |   |                    |   | 519,883 |   |
|                                                                                                                             |   |                    |    |   |                    |   |   |   |
| STOCKHOLDERS’      EQUITY                                                                                                  |   |                    |    |   |                    |   |   |   |
| Serial      preferred stock, $.01 par value; 10,000,000 authorized;                                                              |   |                    |    |   |                    |   |   |   |
| Issued      and outstanding, none                                                                                                |   |                    | -       |   |                    |   | - |   |
| Common      stock, $.01 par value; 90,000,000 authorized;                                                                        |   |                    |    |   |                    |   |   |   |
| Issued      and outstanding:                                                                                                     |   |                    | 167     |   |                    |   | 174 |   |
|                June 30, 2009 – 17,445,311 issued, 16,698,168 outstanding      |   |                    |    |   |                    |   |   |   |
|                Sept. 30, 2008 – 17,412,449 issued, 17,374,161 outstanding     |   |                    |    |   |                    |   |   |   |
| Additional      paid-in capital                                                                                                  |   |                    | 150,391 |   |                    |   | 157,205 |   |
| Retained      earnings                                                                                                           |   |                    | 55,643  |   |                    |   | 59,813 |   |
|          Unearned shares issued to employee stock ownership plan      (“ESOP”)                        |   |                    | (9,926  | )      |                    |   | (10,605 | ) |
| Accumulated      other comprehensive income (loss)                                                                               |   |                    | 2,373   |   |                    |   | (1,400 | ) |
| Total      stockholders’ equity                                                                                            |   |                    | 198,648 |   |                    |   | 205,187 |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                            |   | $                       | 672,743 |   |                    | $      | 725,070 |   |
|                                                                                                                             |   |                    |    |   |                    |   |   |   |

| See      accompanying notes. |
|------------------------------|
| 1                       |

| HOME      FEDERAL BANCORP, INC. AND SUBSIDIARYCONSOLIDATED      STATEMENTS OF OPERATIONS(In      thousands, except share data) (Unaudited) |   | Three      Months Ended June      30, |       |   | Nine      Months EndedJune      30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|--------|-------------------------------------|--------|
|                                                                                                                                       |   | 2009                                       |       |   | 2008                                |   |   | 2009 |   |   | 2008 |   |
| Interest      and dividend income:                                                                                                         |   |                                       |       |   |                                |   |   |   |   |   |   |   |
| Loan      interest                                                                                                                         |   | $                                          | 6,418      |   |                                | $      | 7,544 |   |   | $ | 20,337 |   |   | $ | 23,390 |   |
| Mortgage-backed      security interest                                                                                                     |   |                                       | 1,983      |   |                                |   | 2,372 |   |   |   | 6,311 |   |   |   | 6,463 |   |
| Other      interest and dividends                                                                                                          |   |                                       | 9          |   |                                |   | 177 |   |   |   | 20 |   |   |   | 1,001 |   |
| Total      interest and dividend income                                                                                                    |   |                                       | 8,410      |   |                                |   | 10,093 |   |   |   | 26,668 |   |   |   | 30,854 |   |
| Interest      expense:                                                                                                                     |   |                                       |       |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                                   |   |                                       | 1,629      |   |                                |   | 2,429 |   |   |   | 5,389 |   |   |   | 8,515 |   |
| FHLB      advances and other borrowings                                                                                                    |   |                                       | 1,068      |   |                                |   | 1,752 |   |   |   | 3,861 |   |   |   | 5,594 |   |
| Total      interest expense                                                                                                                |   |                                       | 2,697      |   |                                |   | 4,181 |   |   |   | 9,250 |   |   |   | 14,109 |   |
| Net      interest income                                                                                                                   |   |                                       | 5,713      |   |                                |   | 5,912 |   |   |   | 17,418 |   |   |   | 16,745 |   |
| Provision      for loan losses                                                                                                             |   |                                       | 3,450      |   |                                |   | 652 |   |   |   | 8,085 |   |   |   | 1,317 |   |
| Net      interest income after provision for loan losses                                                                                   |   |                                       | 2,263      |   |                                |   | 5,260 |   |   |   | 9,333 |   |   |   | 15,428 |   |
| Noninterest      income:                                                                                                                   |   |                                       |       |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Service      charges and fees                                                                                                              |   |                                       | 2,008      |   |                                |   | 2,396 |   |   |   | 6,009 |   |   |   | 6,731 |   |
| Gain      on sale of loans                                                                                                                 |   |                                       | 416        |   |                                |   | 213 |   |   |   | 1,013 |   |   |   | 560 |   |
|     Increase      in cash surrender value of bank owned life insurance                                            |   |                                       |  107  |   |                                |   |  106 |   |   |   |  317 |   |   |   |  314 |   |
| Loan      servicing fees                                                                                                                   |   |                                       | -          |   |                                |   | 116 |   |   |   | 54 |   |   |   | 369 |   |
| Mortgage      servicing rights, net                                                                                                        |   |                                       | -          |   |                                |   | (63 | ) |   |   | (31 | ) |   |   | (206 | ) |
| Other                                                                                                                                      |   |                                       | 80         |   |                                |   | (33 | ) |   |   | 55 |   |   |   | 75 |   |
| Total      noninterest income                                                                                                              |   |                                       | 2,611      |   |                                |   | 2,735 |   |   |   | 7,417 |   |   |   | 7,843 |   |
| Noninterest      expense:                                                                                                                  |   |                                       |       |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Compensation      and benefits                                                                                                             |   |                                       | 3,594      |   |                                |   | 3,840 |   |   |   | 10,948 |   |   |   | 11,592 |   |
| Occupancy      and equipment                                                                                                               |   |                                       | 804        |   |                                |   | 771 |   |   |   | 2,303 |   |   |   | 2,242 |   |
| Data      processing                                                                                                                       |   |                                       | 654        |   |                                |   | 615 |   |   |   | 1,773 |   |   |   | 1,668 |   |
| Advertising                                                                                                                                |   |                                       | 211        |   |                                |   | 241 |   |   |   | 656 |   |   |   | 786 |   |
| Postage      and supplies                                                                                                                  |   |                                       | 126        |   |                                |   | 147 |   |   |   | 409 |   |   |   | 468 |   |
| Professional      services                                                                                                                 |   |                                       | 236        |   |                                |   | 130 |   |   |   | 870 |   |   |   | 533 |   |
| Insurance      and taxes                                                                                                                   |   |                                       | 783        |   |                                |   | 158 |   |   |   | 1,244 |   |   |   | 383 |   |
| Other                                                                                                                                      |   |                                       | 606        |   |                                |   | 272 |   |   |   | 1,416 |   |   |   | 809 |   |
| Total      noninterest expense                                                                                                             |   |                                       | 7,014      |   |                                |   | 6,174 |   |   |   | 19,619 |   |   |   | 18,481 |   |
| Income      (loss) before income taxes                                                                                                     |   |                                       | (2,140     | )      |                                |   | 1,821 |   |   |   | (2,869 | ) |   |   | 4,790 |   |
| Income      tax expense (benefit)                                                                                                          |   |                                       | (894       | )      |                                |   | 702 |   |   |   | (1,298 | ) |   |   | 1,779 |   |
| NET      INCOME (LOSS)                                                                                                                     |   | $                                          | (1,246     | )      |                                | $      | 1,119 |   |   | $ | (1,571 | ) |   | $ | 3,011 |   |
|                                                                                                                                       |   |                                       |       |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      (loss) per share:                                                                                                            |   |                                       |       |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                      |   | $                                          | (0.08      | )      |                                | $      | 0.07 |   |   | $ | (0.10 | ) |   | $ | 0.19 | (1) |
| Diluted                                                                                                                                    |   |                                       | (0.08      | )      |                                |   | 0.07 |   |   |   | (0.10 | ) |   |   | 0.19 | (1) |
| Weighted      average number of shares outstanding:                                                                                        |   |                                       |       |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                      |   |                                       | 15,352,714 |   |                                |   | 16,007,599 |   |   |   | 15,742,102 |   |   |   | 16,237,911 | (1) |
| Diluted                                                                                                                                    |   |                                       | 15,352,714 |   |                                |   | 16,043,435 |   |   |   | 15,742,102 |   |   |   | 16,255,548 | (1) |
|                                                                                                                                       |   |                                       |       |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      declared per share:                                                                                                         |   | $                                          | 0.055      |   |                                | $      | 0.055 |   |   | $ | 0.165 |   |   | $ | 0.158 | (1) |
|                                                                                                                                       |   |                                       |       |   |                                |   |   |   |   |   |   |   |   |   |   |   |

| See      accompanying notes. |
|------------------------------|
| 2                       |

|                                                                                                                                                                                                                                                        |   |   | Common      Stock  |   |   |   | Additional      Paid-In   |   |   |   | Retained  |   |   |   | Unearned      SharesIssued      toEmployeeStockOwnership  |   |   |  AccumulatedOtherComprehensive  |       |   |   |                     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------|--------|--------|--------|-------------------------------------|--------|--------|--------|----------------|--------|--------|--------|----------------------------------------------------------------|--------|--------|-------------------------------------------|------------|--------|--------|--------------------------|
|                                                                                                                                                                                                                                                        |   |   | Shares             |   |   |   | Amount                         |   |   |   | Capital   |   |   |   | Earnings                                                  |   |   |                                      | Plan  |   |   | Income      (Loss)  |   |   | Total  |   |
| Balance      at Sept. 30, 2007                                                                                                                                                                                                                              |   |   | 15,232,243              |   |   | $      | 152                                 |   |   | $      | 59,613         |   |   | $      | 58,795                                                         |   |   | $                                         | (3,698     | )      |   | $                        | (2,225 | ) |   | $ | 112,637 |   |
| Second      Step Conversion(1)                                                                                                                                                                                                                              |   |   | 2,073,619               |   |   |   | 21                                  |   |   |   | 95,938         |   |   |   |                                                           |   |   |                                      | (8,160     | )      |   |                     |   |   |   |   | 87,799 |   |
| Dissolution      of  Mutual             Holding Company                                                                                                                                                             |   |   |                    |   |   |   |                                |   |   |   | 50             |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   | 50 |   |
| Restricted      stock issued, net of forfeitures                                                                                                                                                                                                            |   |   | 13,502                  |   |   |   |                                |   |   |   |           |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   | - |   |
| ESOP      shares committed to be              released                                                                                                                                                                   |   |   |                    |   |   |   |                                |   |   |   | (23            | )      |   |   |                                                           |   |   |                                      | 1,253      |   |   |                     |   |   |   |   | 1,230 |   |
| Exercise      of stock options                                                                                                                                                                                                                              |   |   | 54,797                  |   |   |   | 1                                   |   |   |   | 605            |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   | 606 |   |
| Share-based      compensation                                                                                                                                                                                                                               |   |   |                    |   |   |   |                                |   |   |   | 1,022          |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   | 1,022 |   |
| Dividends      paid       ($0.213      per share)  (2) (3)                                                                                                                                                |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   | (2,987                                                         | )      |   |                                      |       |   |   |                     |   |   |   |   | (2,987 | ) |
| Comprehensive      income:                                                                                                                                                                                                                                  |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   |   |   |
| Net      income                                                                                                                                                                                                                                             |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   | 4,005                                                          |   |   |                                      |       |   |   |                     |   |   |   |   | 4,005 |   |
| Other      comprehensive income:                                                                                                                                                                                                                            |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   |   |   |
| Change      in unrealized               holding loss on              securities available for              sale, net of  taxes |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   |                                                           |   |   |                                      |       |   |   |                     | 825 |   |   |   | 825 |   |
| Comprehensive      income                                                                                                                                                                                                                                   |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   | 4,830 |   |
| Balance      at Sept. 30, 2008                                                                                                                                                                                                                              |   |   | 17,374,161              |   |   |   | 174                                 |   |   |   | 157,205        |   |   |   | 59,813                                                         |   |   |                                      | (10,605    | )      |   |                     | (1,400 | ) |   |   | 205,187 |   |
| Restricted      stock issued, net of forfeitures                                                                                                                                                                                                            |   |   | 159,115                 |   |   |   | 2                                   |   |   |   | (2             | )      |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   | - |   |
| ESOP      shares committed to be             released                                                                                                                                                                         |   |   |                    |   |   |   |                                |   |   |   | 12             |   |   |   |                                                           |   |   |                                      | 679        |   |   |                     |   |   |   |   | 691 |   |
| Exercise      of stock options                                                                                                                                                                                                                              |   |   | 32,862                  |   |   |   |                                |        |   |   | 353            |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   | 353 |   |
| Share-based      compensation                                                                                                                                                                                                                               |   |   |                    |   |   |   |                                |   |   |   | 730            |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   | 730 |   |
|     Treasury      shares purchased                                                                                                                                                                                                      |   |   | (867,970                | )      |   |   | (9                                  | )      |   |   | (7,886         | )      |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   | (7,895 | ) |
| Dividends      paid       ($0.165      per share)                                                                                                                                                                        |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   | (2,599                                                         | )      |   |                                      |       |   |   |                     |   |   |   |   | (2,599 | ) |
| Tax      adjustment                                                                                                                                                                                                                                         |   |   |                    |   |   |   |                                |   |   |   | (21            | )      |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   | (21 | ) |
| Comprehensive      income:                                                                                                                                                                                                                                  |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   |   |   |
| Net      loss                                                                                                                                                                                                                                               |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   | (1,571                                                         | )      |   |                                      |       |   |   |                     |   |   |   |   | (1,571 | ) |
| Other      comprehensive  income:                                                                                                                                                                                                                      |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   |   |   |
| Change      in unrealized              holding loss on              securities available for              sale, net of  taxes            |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   |                                                           |   |   |                                      |       |   |   |                     | 3,804 |   |   |   | 3,804 |   |
|  Adjustment      for realized               gains, net of taxes of               $20                                                                                   |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   |                                                           |   |   |                                      |       |   |   |                     | (31 | ) |   |   | (31 | ) |
| Comprehensive      income                                                                                                                                                                                                                                   |   |   |                    |   |   |   |                                |   |   |   |           |   |   |   |                                                           |   |   |                                      |       |   |   |                     |   |   |   |   | 2,202 |   |
| Balance      at June 30, 2009                                                                                                                                                                                                                               |   |   | 16,698,168              |   |   | $      | 167                                 |   |   | $      | 150,391        |   |   | $      | 55,643                                                         |   |   | $                                         | (9,926     | )      |   | $                        | 2,373 |   |   | $ | 198,648 |   |

| (1)   | The      total effect on equity accounts from the second-step conversion has      changed from the December 31, 2007 reported numbers due to adjustments      such as the effect of fractional shares and payment of additional expenses      related to the second-stepconversion. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Home      Federal MHC waived its receipt of dividends on the 8,979,246 shares that      it owned.                                                                                   |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)   | Dividends      per share have been adjusted to reflect the impact of the second-step      conversion of Home Federal Bancorp, Inc., which occurred on December 19,      2007.  |

| See      accompanying notes. |
|------------------------------|
| 3                       |

|   |   |
|--------|--------|

| HOME      FEDERAL BANCORP, INC. AND SUBSIDIARYCONSOLIDATED      STATEMENTS OF CASH FLOWS(In      thousands) (Unaudited) |   | Nine      Months Ended June      30, |    |
|-------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                                                                                    |   | 2009                                      |    |   | 2008 |   |
|  CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                        |   |                                      |    |   |   |   |
| Net      income (loss)                                                                                                  |   | $                                         | (1,571  | ) |   | $ | 3,011 |   |
| Adjustments      to reconcile net income (loss) to cash provided by operating      activities:                          |   |                                      |    |   |   |   |   |   |
| Depreciation      and amortization                                                                                      |   |                                      | 1,294   |   |   |   | 1,247 |   |
| Net      amortization (accretion) of premiums and discounts on      investments                                         |   |                                      | 9       |   |   |   | (18 | ) |
| Loss      on sale of fixed assets and repossessed assets                                                                |   |                                      | 82      |   |   |   | 119 |   |
| Gain      on sale of securities available for sale                                                                      |   |                                      | (51     | ) |   |   | - |   |
| ESOP      shares committed to be released                                                                               |   |                                      | 691     |   |   |   | 423 |   |
| Equity      compensation expense                                                                                        |   |                                      | 730     |   |   |   | 779 |   |
| Provision      for loan losses                                                                                          |   |                                      | 8,085   |   |   |   | 1,317 |   |
| Valuation      allowance on other real estate owned                                                                     |   |                                      | 552     |   |   |   | - |   |
| Accrued      deferred compensation expense, net                                                                         |   |                                      | 28      |   |   |   | 513 |   |
| Net      deferred loan fees                                                                                             |   |                                      | (77     | ) |   |   | 54 |   |
| Deferred      income tax benefit                                                                                        |   |                                      | (2,598  | ) |   |   | (598 | ) |
| Net      gain on sale of loans                                                                                          |   |                                      | (1,013  | ) |   |   | (560 | ) |
| Proceeds      from sale of loans held for sale                                                                          |   |                                      | 56,151  |   |   |   | 38,579 |   |
| Originations      of loans held for sale                                                                                |   |                                      | (57,371 | ) |   |   | (37,193 | ) |
| Net      decrease in value of mortgage servicing rights                                                                 |   |                                      | 31      |   |   |   | 207 |   |
| Loss      on sale of mortgage servicing rights                                                                          |   |                                      | 74      |   |   |   |   |   |
| Net      increase in value of bank owned life insurance                                                                 |   |                                      | (316    | ) |   |   | (314 | ) |
| Change      in assets and liabilities:                                                                                  |   |                                      |    |   |   |   |   |   |
| Interest      receivable                                                                                                |   |                                      | 472     |   |   |   | 5 |   |
| Other      assets                                                                                                       |   |                                      | 368     |   |   |   | 158 |   |
| Interest      payable                                                                                                   |   |                                      | (182    | ) |   |   | (151 | ) |
| Other      liabilities                                                                                                  |   |                                      | 154     |   |   |   | (903 | ) |
| Net      cash provided by operating activities                                                                          |   |                                      | 5,542   |   |   |   | 6,675 |   |
|  CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                        |   |                                      |    |   |   |   |   |   |
| Proceeds      from maturities of mortgage-backed securities available for      sale                                     |   |                                      | 26,931  |   |   |   | 23,976 |   |
| Proceeds      from sales of mortgage-backed securities available forsale                                                |   |                                      | 1,203   |   |   |   | - |   |
| Purchases      of mortgage-backed securities available for sale                                                         |   |                                      | (2,734  | ) |   |   | (56,257 | ) |
| Maturity      of (Investment in) certificate of deposit                                                                 |   |                                      | 5,000   |   |   |   | (5,000 | ) |
| Sale      of mortgage servicing rights                                                                                  |   |                                      | 1,602   |   |   |   | - |   |
| Purchases      of property and equipment                                                                                |   |                                      | (3,088  | ) |   |   | (3,218 | ) |
| Net      decrease in loans                                                                                              |   |                                      | 23,910  |   |   |   | 9,720 |   |
| Proceeds      from sale of fixed assets and repossessed assets                                                          |   |                                      | 1,090   |   |   |   | 501 |   |
| Net      cash provided (used) by investing activities                                                                   |   |                                      | 53,914  |   |   |   | (30,278 | ) |
|                                                                                                                    |   |                                      |    |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                              |   |                                      |    |   |   |   |   |   |
| Net      increase (decrease) in deposits                                                                                |   |                                      | 3,071   |   |   |   | (22,267 | ) |
| Net      decrease in advances by borrowers for taxes and insurance                                                      |   |                                      | (797    | ) |   |   | (948 | ) |
| Proceeds      from FHLB advances                                                                                        |   |                                      | 18,000  |   |   |   | 59,715 |   |
| Repayment      of FHLB advances                                                                                         |   |                                      | (67,582 | ) |   |   | (94,863 | ) |
| Proceeds      from other borrowings                                                                                     |   |                                      | 1,501   |   |   |   | - |   |
| Net      proceeds from stock issuance and exchange pursuant to second step      conversion                              |   |                                      | -       |   |   |   | 88,336 |   |
| Proceeds      from exercise of stock options                                                                            |   |                                      | 353     |   |   |   | 328 |   |
| Repurchases      of common stock                                                                                        |   |                                      | (7,895  | ) |   |   | - |   |
| Dividends      paid                                                                                                     |   |                                      | (2,599  | ) |   |   | (2,099 | ) |
| Net      cash (used) provided by financing activities                                                                   |   |                                      | (55,948 | ) |   |   | 28,202 |   |
|  NET      INCREASE IN CASH AND CASH EQUIVALENTS                                                                    |   |                                      | 3,508   |   |   |   | 4,599 |   |
| CASH      AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                                     |   |                                      | 23,270  |   |   |   | 20,588 |   |
| CASH      AND CASH EQUIVALENTS, END OF PERIOD                                                                           |   | $                                         | 26,778  |   |   | $ | 25,187 |   |
|                                                                                                                    |   |                                      |    |   |   |   |   |   |

| See      accompanying notes. |
|------------------------------|
| 4                       |

| HOME      FEDERAL BANCORP, INC. AND SUBSIDIARYCONSOLIDATED      STATEMENTS OF CASH FLOWS (Continued)(In      thousands) (Unaudited) |   | Nine      Months Ended June      30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                                                                |   | 2009                                      |   |   | 2008 |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION:                                                                              |   |                                      |   |   |   |   |
| Cash      paid during the period for:                                                                                               |   |                                      |   |   |   |   |
| Interest                                                                                                                            |   | $                                         | 9,433  |   |   | $ | 14,259 |   |
|                  Income taxes                                                |   |                                      | 2,545  |   |   |   | 2,610 |   |
|                                                                                                                                |   |                                      |   |   |   |   |   |   |
| NONCASH      INVESTING AND FINANCING ACTIVITIES:                                                                                    |   |                                      |   |   |   |   |   |   |
| Acquisition      of real estate and other assets in settlement of loans                                                             |   | $                                         | 9,682  |   |   | $ | 1,137 |   |
| Fair      value adjustment to securities available for sale, net of      taxes                                                      |   |                                      | 3,804  |   |   |   | 117 |   |

| See      accompanying notes. |
|------------------------------|
| 5                       |

|    |
|---------|
| 6  |

|                                                                                                                                                 |   | Three      Months Ended June      30,           |       |   | Nine      Months Ended June      30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|------------|--------|-------------------------------------------|--------|
|                                                                                                                                                 |   | 2009                                                 |       |   | 2008                                      |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                 |   | (in      thousands, except share and per share data) |       |
| Basic      EPS:                                                                                                                                      |   |                                                 |       |   |                                      |   |   |   |   |   |   |   |
| Net      income (loss)                                                                                                                               |   | $                                                    | (1,246     | )      |                                      | $      | 1,119 |   |   | $ | (1,571 | ) |   | $ | 3,011 |   |
| Weighted-average      common shares            outstanding                                                                  |   |                                                 | 15,352,714 |   |                                      |   | 16,007,599 |   |   |   | 15,742,102 |   |   |   | 16,237,911 |   |
| Basic      EPS                                                                                                                                       |   | $                                                    | (0.08      | )      |                                      | $      | 0.07 |   |   | $ | (0.10 | ) |   | $ | 0.19 |   |
|                                                                                                                                                 |   |                                                 |       |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      EPS:                                                                                                                                    |   |                                                 |       |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                                                                               |   | $                                                    | (1,246     | )      |                                      | $      | 1,119 |   |   | $ | (1,571 | ) |   | $ | 3,011 |   |
| Weighted-average      common shares            outstanding                                                                  |   |                                                 | 15,352,714 |   |                                      |   | 16,007,599 |   |   |   | 15,742,102 |   |   |   | 16,237,911 |   |
| Net      effect of dilutive stock options                                                                                                            |   |                                                 | -          |   |                                      |   | 2,986 |   |   |   | - |   |   |   | - |   |
| Net      effect of dilutive restricted stock                                                                                                         |   |                                                 | -          |   |                                      |   | 32,850 |   |   |   | - |   |   |   | 17,637 |   |
| Weighted-average      common shares            outstanding and common stock            equivalents |   |                                                 | 15,352,714 |   |                                      |   | 16,043,435 |   |   |   | 15,742,102 |   |   |   | 16,255,548 |   |
| Diluted      EPS                                                                                                                                     |   | $                                                    | (0.08      | )      |                                      | $      | 0.07 |   |   | $ | (0.10 | ) |   | $ | 0.19 |   |

|    |
|---------|
| 7  |

|                                                             |   | Amortized      Cost |    |   | Gross      Unrealized Gains |   |   | Gross      Unrealized Losses |   |   | Fair Value |   |
|------------------------------------------------------------------|--------|---------------------|---------|--------|-----------------------------|--------|--------|------------------------------|--------|--------|-----------------|--------|
|                                                             |   | (in      thousands) |    |
| June 30,      2009                                               |   |                |    |   |                        |   |   |                         |   |   |            |   |
| Issued      by U.S. Government sponsored        enterprises |   | $                   | 162,472 |   |                        | $      | 4,275  |                         |   | $      | -               |   |   | $ | 166,747 |   |
| Other                                                            |   |                | 3,290   |   |                        |   | -      |                         |   |   | (321            | )      |   |   | 2,969 |   |
| Total                                                            |   | $                   | 165,762 |   |                        | $      | 4,275  |                         |   | $      | (321            | )      |   | $ | 169,716 |   |
|                                                             |   |                |    |   |                        |   |   |                         |   |   |            |   |   |   |   |   |
| September 30,      2008                                          |   |                |    |
| Issued      by U.S. Government sponsored        enterprises |   | $                   | 187,730 |   |                        | $      | 669    |                         |   | $      | (2,669          | )      |   | $ | 185,730 |   |
| Other                                                            |   |                | 3,390   |   |                        |   | -      |                         |   |   | (333            | )      |   |   | 3,057 |   |
|       Total                        |   | $                   | 191,120 |   |                        | $      | 669    |                         |   | $      | (3,002          | )      |   | $ | 188,787 |   |

|                       | Less      than 12 months                     |                           | 12      months or longer                     |                            | Total           |
|----------------------------|----------------------------------------------|--------------------------------|----------------------------------------------|---------------------------------|-----------------|
|                       | FairValue                                    |                           | Unrealized Losses                       |                            | Fair      Value |   | UnrealizedLosses |   | Fair      Value |   | UnrealizedLosses |
|                       | (in      thousands)                          |
| Mortgage-backed            |                                         |                           |                                         |                            |            |   |   |   |   |   |   |
| securities,      available |                                         |                           |                                         |                            |            |   |   |   |   |   |   |
| for      sale              | $   -     |            | $   -     |             | $2,969          |   | $(321) |   | $2,969     |           | $(321)    |

|    |
|---------|
| 8  |

|                                 |   | June      30, 2009          |    |   | September      30, 2008    |   |
|--------------------------------------|--------|-----------------------------|---------|--------|----------------------------|--------|
|                                 |   | Balance                     |    |   | Percent      of      Total |   |   | Balance |   |   | Percent of      Total |   |
|                                 |   | (dollars      in thousands) |    |
| Real      Estate:                    |   |                        |    |   |                       |   |   |   |   |   |   |   |
| One-      to four-family residential |   | $                           | 176,038 |   |                       |   | 41.21 | % |   | $ | 210,302 |   |   |   | 45.22 | % |
| Multi-family      residential        |   |                        | 10,092  |   |                       |   | 2.36 |   |   |   | 8,477 |   |   |   | 1.82 |   |
| Commercial                           |   |                        | 154,209 |   |                       |   | 36.10 |   |   |   | 151,733 |   |   |   | 32.62 |   |
| Total      real estate          |   |                        | 340,339 |   |                       |   | 79.67 |   |   |   | 370,512 |   |   |   | 79.66 |   |
|                                 |   |                        |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Real      Estate Construction:       |   |                        |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| One-      to four-family residential |   |                        | 9,710   |   |                       |   | 2.27 |   |   |   | 13,448 |   |   |   | 2.89 |   |
| Multi-family      residential        |   |                        | -       |   |                       |   | - |   |   |   | 920 |   |   |   | 0.20 |   |
| Commercial      and land development |   |                        | 21,349  |   |                       |   | 5.00 |   |   |   | 18,674 |   |   |   | 4.01 |   |
| Total      real estate construction  |   |                        | 31,059  |   |                       |   | 7.27 |   |   |   | 33,042 |   |   |   | 7.10 |   |
|                                 |   |                        |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Consumer:                            |   |                        |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Home      equity                     |   |                        | 48,404  |   |                       |   | 11.33 |   |   |   | 52,954 |   |   |   | 11.38 |   |
| Automobile                           |   |                        | 1,353   |   |                       |   | 0.32 |   |   |   | 1,903 |   |   |   | 0.41 |   |
| Other      consumer                  |   |                        | 1,217   |   |                       |   | 0.29 |   |   |   | 1,370 |   |   |   | 0.29 |   |
| Total      consumer                  |   |                        | 50,974  |   |                       |   | 11.94 |   |   |   | 56,227 |   |   |   | 12.08 |   |
|                                 |   |                        |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      business             |   |                        | 4,803   |   |                       |   | 1.12 |   |   |   | 5,385 |   |   |   | 1.16 |   |
|                                 |   |                        | 427,175 |   |                       |   | 100.00 | % |   |   | 465,166 |   |   |   | 100.00 | % |
|                                 |   |                        |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Premium      on purchased loans      |   |                        | 184     |   |                       |   |   |   |   |   | 199 |   |   |   |   |   |
| Deferred      loan fees              |   |                        | (895    | )      |                       |   |   |   |   |   | (973 | ) |   |   |   |   |
| Allowance      for loan losses       |   |                        | (8,266  | )      |                       |   |   |   |   |   | (4,579 | ) |   |   |   |   |
| Loans      receivable, net           |   | $                           | 418,198 |   |                       |   |   |   |   | $ | 459,813 |   |   |   |   |   |

|                                 |   | Three      Months EndedJune      30, |   |   | Nine      Months EndedJune      30, |   |
|--------------------------------------|--------|--------------------------------------|--------|--------|-------------------------------------|--------|
|                                 |   | 2009                                 |   |   | 2008                                |   |   | 2009 |   |   | 2008 |   |
|                                 |   | (in      thousands)                  |   |
|                                 |   |                                 |   |   |                                |   |   |   |   |   |   |   |
| Beginning      balance               |   | $                                    | 7,333  |   |                                | $      | 3,307 |   |   | $ | 4,579 |   |   | $ | 2,988 |   |
| Provision      for loan losses       |   |                                 | 3,450  |   |                                |   | 652 |   |   |   | 8,085 |   |   |   | 1,317 |   |
| Losses      on loans charged-off     |   |                                 | (2,616 | )      |                                |   | (168 | ) |   |   | (4,524 | ) |   |   | (528 | ) |
| Recoveries      on loans charged-off |   |                                 | 99     |   |                                |   | 10 |   |   |   | 126 |   |   |   | 24 |   |
| Ending      balance                  |   | $                                    | 8,266  |   |                                | $      | 3,801 |   |   | $ | 8,266 |   |   | $ | 3,801 |   |

|    |
|---------|
| 9  |

| ·  |    | Level      1 – Quoted prices for identical instruments in active    markets. |
|--------------|--------------|------------------------------------------------------------------------------------|

| ·  |    | Level      2 – Quoted prices for similar instruments in active markets; quoted prices      for identical or similar instruments in markets that are not active; and      model-derived valuations whose inputs are observable or whose significant      value drivers are observable. |
|--------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  |    | Level      3 – Instruments whose significant value drivers are      unobservable. |
|--------------|--------------|-----------------------------------------------------------------------------------------|

|                               | June      30, 2009  |
|------------------------------------|---------------------|
|                               |                |         Total |   |   |           Level 1 |   |   |          Level 2 |   |   |         Level 3 |
|                               | (in      thousands) |
|                               |                |   |   |   |   |   |   |   |   |   |   |
| Securities      available for sale |                | $169,716 |   |   |        - |   |   | $169,716 |   |   |        - |

|                   | June      30, 2009  |
|------------------------|---------------------|
|                   |                |         Total |   |   |          Level 1 |   |   |         Level 2 |   |   |         Level 3 |
|                   | (in      thousands) |
|                   |                |   |   |   |   |   |   |   |   |   |   |
| Impaired      loans    |                | $7,424 |   |   |        - |   |   |          - |   |   | $7,424 |
| Real      estate owned |                | 8,614 |   |   | - |   |   | - |   |   | 8,614 |

|     |
|----------|
| 10  |

|                                                                       |   | June      30, 2009   |    |
|----------------------------------------------------------------------------|--------|----------------------|---------|
|                                                                       |   | Carrying      Amount |    |   | Estimated      Fair      Value |   |
|                                                                       |   | (in      thousands)  |    |
| Financial      Assets:                                                     |   |                 |    |   |   |   |
| Cash      and cash equivalents                                             |   | $                    | 26,778  |   |   | $ | 26,778 |   |
| Mortgage-backed      securities          available for sale |   |                 | 169,716 |   |   |   | 169,716 |   |
| Loans      held for sale                                                   |   |                 | 5,064   |   |   |   | 5,064 |   |
| Loans      receivable, gross                                               |   |                 | 427,359 |   |   |   | 443,895 |   |
| FHLB      stock                                                            |   |                 | 9,591   |   |   |   | 9,591 |   |
|                                                                       |   |                 |    |   |   |   |   |   |
| Financial      Liabilities:                                                |   |                 |    |   |   |   |   |   |
| Demand      and savings deposits                                           |   |                 | 207,013 |   |   |   | 207,013 |   |
| Certificates      of deposit                                               |   |                 | 168,983 |   |   |   | 171,079 |   |
| FHLB      advances and other borrowings                                    |   |                 | 88,891  |   |   |   | 94,972 |   |

|     |
|----------|
| 11  |

| ·   | statements      of our goals, intentions andexpectations; |
|--------------------|-----------------------------------------------------------|

| ·   | statements      regarding our business plan, prospects, growth and operating      strategies; |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | statements      regarding the quality of our loan and investment portfolios;      and, |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | estimates      of our risks and future costs andbenefits. |
|--------------------|-----------------------------------------------------------|

| ·   | general      economic conditions, including real estate values, either nationally or in      the Company’s market area continue todecline; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes      in the interest rate environment that reduce the Company’s interest      margins or reduce the fair value of financial  instruments; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      credit risk of lending activities, including risks related to construction      and land development lending and commercial and small business      banking; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes      in the level and trend of loan delinquencies and    write-offs; |
|--------------------|------------------------------------------------------------------------------|

| ·   | results      of examinations by bankingregulators; |
|--------------------|----------------------------------------------------|

| ·   | increased      competitive pressures among financial services  companies; |
|--------------------|---------------------------------------------------------------------------|

| ·   | changes      in consumer spending, borrowing and savings  habits; |
|--------------------|-------------------------------------------------------------------|

| ·   | our      ability to successfully manage ourgrowth; |
|--------------------|----------------------------------------------------|

| ·   | legislative      or regulatory changes that adversely affect the Company’s business,      including restrictions or limitations on permissible lending activities      for thrifts and savings banks; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      ability to integrate the operations from any acquisition we may      make; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | adverse      changes in the securities markets;and |
|--------------------|----------------------------------------------------|

| ·   | changes      in accounting policies and practices, as may be adopted by the bank      regulatory agencies, the Public Company Accounting Oversight Board or the      Financial Accounting StandardsBoard. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     |
|----------|
| 12  |

|   ■           | Economic      conditions in the Treasure Valley continued to deteriorate as a result of      rising unemployment, bankruptcies and foreclosures and declining real      estate values, which resulted in rising levels of nonperforming assets and      the need for an additional provision for loan  losses; |
|---------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ■    | The      Company’s total assets declined and maturing borrowings were repaid with      excess cash; |
|---------------------------------------------------|-----------------------------------------------------------------------------------------------------------|

| ■  | Total      loans declined reflecting a decrease in lending opportunities to good      credit customers in Southwestern Idaho and management’s strategy to reduce      1-4 family residential loanexposure; |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ■ | Core      deposits increased and certificates of deposit decreased as management      continued to focus on low-cost relationship  accounts; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ■ | The      Bank launched a new checking account product that is expected to increase      core deposit balances and generate interchange  income; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ■ | While      nonperforming loans increased during the quarter, loans delinquent less      than 90 days declined compared to March 31,  2009; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|

|     |
|----------|
| 13  |

| ■ | Deteriorating      asset quality and foreclosed asset valuations resulted in increased      operating expenses through additional valuation allowances and maintenance      and property tax expense;,  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ■ | The      Bank accrued $250,000 related to a special assessment levied by the      Federal Deposit Insurance Corporation (“FDIC”) to be paid in September      2009; and                     |
| ■ | The      Bank maintained its strong capital position with a total risk-based      capital ratio of 33.6% at                                                                                             |
|    | June      30, 2009.                                                                                                                                                                                     |

|     |
|----------|
| 14  |

|     |
|----------|
| 15  |

|                                           |   |                                    |    |   | Increase/(Decrease)                     |   |
|------------------------------------------------|--------|-----------------------------------------|---------|--------|-----------------------------------------|--------|
|                                           |   |                                    |    |   |                                    |   |   |   |   |   |   |   |
|                                           |   | Balance      at June      30, 2009 |    |   | Balance      at September      30, 2008 |   |   | Amount |   |   | Percent |   |
|                                           |   | (dollars      in thousands)             |    |
| Mortgage-backed      securities, at fair value |   | $                                       | 169,716 |   |                                    | $      | 188,787 |   |   | $ | (19,071 | ) |   |   | (10.1 | )% |
| Loans      receivable, net                     |   |                                    | 418,198 |   |                                    |   | 459,813 |   |   |   | (41,615 | ) |   |   | (9.1 | ) |
| Real      estate and other property owned      |   |                                    | 8,614   |   |                                    |   | 650 |   |   |   | 7,964 |   |   |   | 1,225 |   |

|     |
|----------|
| 16  |

|                                      |   | June      30,       |   |   | March      31, |   |   | September      30, |   |
|-------------------------------------------|--------|---------------------|--------|--------|----------------|--------|--------|--------------------|--------|
|                                      |   | 2009                |   |   | 2009           |   |   | 2008               |   |
|                                      |   | (in      thousands) |   |
| Land      acquisition and development     |   | $                   | 623    |   |           | $      | 133    |               |   | $ | 1,150 |   |
| One-      to four-family construction     |   |                | 245    |   |           |   | 760    |               |   |   | 241 |   |
| Commercial      real estate               |   |                | 1,357  |   |           |   | 5,313  |               |   |   | 3,094 |   |
| One-      to four-family residential      |   |                | 1,300  |   |           |   | 5,242  |               |   |   | 1,836 |   |
| Other                                     |   |                | 256    |   |           |   | 193    |               |   |   | 190 |   |
| Total loans delinquent 30 to 89      days |   | $                   | 3,781  |   |           | $      | 11,641 |               |   | $ | 6,511 |   |

|     |
|----------|
| 17  |

|                                                                                   |   | June 30, 2009       |         |   | March 31,      2009                       |   |   | September 30, 2008 |   |
|----------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------------|--------|-------------------------------------------|--------|--------|--------------------|--------|
|                                                                                   |   | (in      thousands)                               |         |
|                                                                                   |   | Balance                                           |         |   | Loss          Reserve |   |   | Balance            |   |   | Loss     Reserve |   |   | Balance |   |   | Loss     Reserve |   |
| Land      acquisition and        development                                      |   | $                                                 | 3,734        |   |                                      | $      | 1,352  |               |   | $ | 5,266 |   |   | $ | 1,029 |   |   | $ | 3,975 |   |   | $ | 916 |   |
| One-      to four-family        construction                                      |   |                                              | 3,478        |   |                                      |   | 390    |               |   |   | 2,307 |   |   |   | 286 |   |   |   | 4,239 |   |   |   | 596 |   |
| Commercial      real estate                                                            |   |                                              | 4,000        |   |                                      |   | 256    |               |   |   | 3,074 |   |   |   | 220 |   |   |   | - |   |   |   | - |   |
| One-      to four-family        residential                                       |   |                                              | 5,169        |   |                                      |   | 816    |               |   |   | 3,943 |   |   |   | 441 |   |   |   | 1,701 |   |   |   | 219 |   |
| Other                                                                                  |   |                                              | 81           |   |                                      |   | 6      |               |   |   | - |   |   |   | - |   |   |   | 30 |   |   |   | 2 |   |
| Total nonperforming              and impaired loans |   | $                                                 | 16,462       |   |                                      |   | 2,820  |               |   | $ | 14,590 |   |   |   | 1,976 |   |   | $ | 9,945 |   |   |   | 1,733 |   |
| General      loss reserve                                                              |   |                                              |         |   |                                      |   | 5,446  |               |   |   |   |   |   |   | 5,357 |   |   |   |   |   |   |   | 2,846 |   |
| Total allowance for               loan losses  |   |                                              |         |   |                                      | $      | 8,266  |               |   |   |   |   |   | $ | 7,333 |   |   |   |   |   |   | $ | 4,579 |   |
|                                                                                   |   |                                              |         |   |                                      |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real      estate owned, net                                                            |   | $                                                 | 8,614        |   |                                      |   |   |               |   | $ | 4,478 |   |   |   |   |   |   | $ | 650 |   |   |   |   |   |
|                                                                                   |   |                                              |         |   |                                      |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      nonperforming assets                                                        |   | $                                            | 25,076  |   |                                      |   |   |               |   | $  | 19,068  |   |   |   |   |   |   | $  |  10,595 |   |   |   |   |   |

|     |
|----------|
| 18  |

|                                     |   |                                    |    |   | Increase      (decrease)                |   |
|------------------------------------------|--------|-----------------------------------------|---------|--------|-----------------------------------------|--------|
|                                     |   |                                    |    |   |                                    |   |   |   |   |   |   |   |
|                                     |   | Balance      at June      30, 2009 |    |   | Balance      at September      30, 2008 |   |   | Amount |   |   | Percent |   |
|                                     |   | (dollars      in thousands)             |    |
|                                     |   |                                    |    |   |                                    |   |   |   |   |   |   |   |
| Noninterest-bearing      demand deposits |   | $                                       | 39,931  |   |                                    | $      | 41,398 |   |   | $ | (1,467 | ) |   |   | (3.5 | )% |
| Interest-bearing      demand deposits    |   |                                    | 131,202 |   |                                    |   | 127,714 |   |   |   | 3,488 |   |   |   | 2.7 |   |
| Savings      deposits                    |   |                                    | 35,880  |   |                                    |   | 26,409 |   |   |   | 9,471 |   |   |   | 35.9 |   |
| Certificates      of deposit             |   |                                    | 168,983 |   |                                    |   | 177,404 |   |   |   | (8,421 | ) |   |   | (4.7 | ) |
| Total      deposit accounts              |   | $                                       | 375,996 |   |                                    | $      | 372,925 |   |   | $ | 3,071 |   |   |   | 0.8 | % |

|     |
|----------|
| 19  |

|                                                             |   | Three      Months Ended June 30, 2009Compared      to Three Months Ended June 30,      2008 |   |
|------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|--------|
|                                                             |   | Increase      (Decrease) Due to                                                                       |   |   |   |   |
|                                                             |   |                                                                                                  |   |   |   |   |   |   |   |
|                                                             |   | Rate                                                                                                  |   |   | Volume |   |   | Total |   |
|                                                             |   | (in      thousands)                                                                                   |   |
| Interest-earning      assets:                                    |   |                                                                                                  |   |   |   |   |   |   |   |
| Loans      receivable, net                                       |   | $                                                                                                     | (513   | ) |   | $ | (617 | ) |   | $ | (1,130 | ) |
| Loans      held for sale                                         |   |                                                                                                  | (11    | ) |   |   | 15 |   |   |   | 4 |   |
| Interest-bearing      deposits in other banks                    |   |                                                                                                  | (93    | ) |   |   | (15 | ) |   |   | (108 | ) |
| Mortgage-backed      securities                                  |   |                                                                                                  | (78    | ) |   |   | (311 | ) |   |   | (389 | ) |
| FHLB      stock                                                  |   |                                                                                                  | (60    | ) |   |   | - |   |   |   | (60 | ) |
| Total      net change in income on interest-earning assets       |   | $                                                                                                     | (755   | ) |   | $ | (928 | ) |   | $ | (1,683 | ) |
|                                                             |   |                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                               |   |                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Savings      deposits                                            |   | $                                                                                                     | (4     | ) |   | $ | 16 |   |   | $ | 12 |   |
| Interest-bearing      demand deposits                            |   |                                                                                                  | (12    | ) |   |   | 4 |   |   |   | (8 | ) |
| Money      market accounts                                       |   |                                                                                                  | (108   | ) |   |   | (50 | ) |   |   | (158 | ) |
| Certificates      of deposit                                     |   |                                                                                                  | (527   | ) |   |   | (119 | ) |   |   | (646 | ) |
| Total      deposits                                              |   |                                                                                                  | (651   | ) |   |   | (149 | ) |   |   | (800 | ) |
| FHLB      advances                                               |   |                                                                                                  | (121   | ) |   |   | (563 | ) |   |   | (684 | ) |
| Total      net change in expense on interest-bearing liabilities |   | $                                                                                                     | (772   | ) |   | $ | (712 | ) |   | $ | (1,484 | ) |
|  Total      decrease in net interest income                 |   |                                                                                                  |   |   |   |   |   |   |   | $ | (199 | ) |

|   |
|--------|
| 20     |

|                                                                              |   | Three      Months Ended June 30, |    |
|-----------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                              |   | 2009                             |    |   | 2008 |   |   | Increase/ |   |
|                                                                              |   | Average      Balance             |    |   | Yield |   |   | Average      Balance |   |   | Yield |   |   | (Decrease)      in Interest and Dividend Income      from 2008 |   |
|                                                                              |   | (dollars      in thousands)      |    |
|                                                                              |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      deposits in other            banks |   | $                                | 20,252  |   |   |   | 0.18 | % |   | $ | 23,698 |   |   |   | 1.97 | % |   | $ | (108 | ) |
| Mortgage-backed      securities                                                   |   |                             | 175,522 |   |   |   | 4.52 |   |   |   | 202,904 |   |   |   | 4.68 |   |   |   | (389 | ) |
| Loans      receivable, net                                                        |   |                             | 437,762 |   |   |   | 5.82 |   |   |   | 478,806 |   |   |   | 6.26 |   |   |   | (1,130 | ) |
| Loans      held for sale                                                          |   |                             | 4,372   |   |   |   | 4.84 |   |   |   | 3,208 |   |   |   | 6.06 |   |   |   | 4 |   |
| FHLB      stock                                                                   |   |                             | 9,591   |   |   |   | - |   |   |   | 9,591 |   |   |   | 2.50 |   |   |   | (60 | ) |
| Total      interest-earning assets                                                |   | $                                | 647,499 |   |   |   | 5.20 | % |   | $ | 718,207 |   |   |   | 5.71 | % |   | $ | (1,683 | ) |

|                                    |   | Three      Months Ended June 30, |    |
|-----------------------------------------|--------|----------------------------------|---------|
|                                    |   | 2009                             |    |   | 2008 |   |   | Increase/ |   |
|                                    |   | Average      Balance             |    |   | Cost |   |   | Average Balance |   |   | Cost |   |   | (Decrease)      in Interest Expense      from 2008 |   |
|                                    |   | (dollars      in thousands)      |    |
|                                    |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings      deposits                   |   | $                                | 35,173  |   |   |   | 0.67 | % |   | $ | 25,337 |   |   |   | 0.74 | % |   | $ | 12 |   |
| Interest-bearing      demand deposits   |   |                             | 83,319  |   |   |   | 0.48 |   |   |   | 80,634 |   |   |   | 0.54 |   |   |   | (8 | ) |
| Money      market deposits              |   |                             | 49,731  |   |   |   | 1.09 |   |   |   | 61,902 |   |   |   | 1.90 |   |   |   | (158 | ) |
| Certificates      of deposit            |   |                             | 172,146 |   |   |   | 3.10 |   |   |   | 183,791 |   |   |   | 4.31 |   |   |   | (646 | ) |
| FHLB      advances                      |   |                             | 100,667 |   |   |   | 4.24 |   |   |   | 153,016 |   |   |   | 4.58 |   |   |   | (684 | ) |
| Total      interest-bearing liabilities |   | $                                | 441,036 |   |   |   | 2.45 | % |   | $ | 504,680 |   |   |   | 3.31 | % |   | $ | (1,484 | ) |

|     |
|----------|
| 21  |

|                                                                     |   | At      or For the Three Months Ended      June 30, |    |
|--------------------------------------------------------------------------|--------|----------------------------------------------------------|---------|
|                                                                     |   | 2009                                                     |    |   | 2008 |   |
|                                                                     |   | (dollars      in thousands)                              |    |
| Provision      for loan losses                                           |   | $                                                        | 3,450   |   |   | $ | 652 |   |
| Net      charge-offs                                                     |   |                                                     | 2,517   |   |   |   | 158 |   |
| Allowance      for loan losses                                           |   |                                                     | 8,266   |   |   |   | 3,801 |   |
| Allowance      for loan losses as a percentage of gross loans receivable |   |                                                     | 1.93    | % |   |   | 0.81 | % |
| Nonperforming  loans                                           |   | $                                                        | 16,462  |   |   | $ | 3,462 |   |
| Allowance      for loan losses as a percentage of nonperforming loans    |   |                                                     | 50.21   | % |   |   | 109.79 | % |
| Nonperforming      loans as a percentage of gross loans receivable       |   |                                                     | 3.85    |   |   |   | 0.73 |   |
| Loans      receivable, net                                               |   | $                                                        | 418,198 |   |   | $ | 468,343 |   |

|     |
|----------|
| 22  |

|                                                                                       |   | Three      Months EndedJune      30, |   |   | Increase      (decrease) |   |
|--------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|--------|--------------------------|--------|
|                                                                                       |   |                                 |   |   |                     |   |   |   |   |   |   |   |
|                                                                                       |   | 2009                                 |   |   | 2008                     |   |   | Amount |   |   | Percent |   |
|                                                                                       |   | (dollars      in thousands)          |   |
| Service      fees and charges                                                              |   | $                                    | 2,008  |   |                     | $      | 2,396 |   |   | $ | (388 | ) |   |   | (16.2 | )% |
| Gain      on sale of loans                                                                 |   |                                 | 416    |   |                     |   | 213 |   |   |   | 203 |   |   |   | 95.3 |   |
| Increase      in cash surrender value          of bank owned life insurance |   |                                 | 107    |   |                     |   | 106 |   |   |   | 1 |   |   |   | 0.9 |   |
| Loan      servicing fees                                                                   |   |                                 | -      |   |                     |   | 116 |   |   |   | (116 | ) |   |   | (100.0 | ) |
| Mortgage      servicing rights, net                                                        |   |                                 | -      |   |                     |   | (63 | ) |   |   | 63 |   |   |   | (100.0 | ) |
| Other                                                                                      |   |                                 | 80     |   |                     |   | (33 | ) |   |   | 113 |   |   |   | (342.4 | ) |
| Total      noninterest income                                                              |   | $                                    | 2,611  |   |                     | $      | 2,735 |   |   | $ | (124 | ) |   |   | (4.5 | )% |

|                                 |   | Three      Months EndedJune      30, |   |   | Increase      (decrease) |   |
|--------------------------------------|--------|--------------------------------------|--------|--------|--------------------------|--------|
|                                 |   |                                 |   |   |                     |   |   |   |   |   |   |   |
|                                 |   | 2009                                 |   |   | 2008                     |   |   | Amount |   |   | Percent |   |
|                                 |   | (dollars      in thousands)          |   |
|                                 |   |                                 |   |   |                     |   |   |   |   |   |   |   |
| Compensation      and benefits       |   | $                                    | 3,594  |   |                     | $      | 3,840 |   |   | $ | (246 | ) |   |   | (6.4 | )% |
| Occupancy      and equipment         |   |                                 | 804    |   |                     |   | 771 |   |   |   | 33 |   |   |   | 4.3 |   |
| Data      processing                 |   |                                 | 654    |   |                     |   | 615 |   |   |   | 39 |   |   |   | 6.3 |   |
| Advertising                          |   |                                 | 211    |   |                     |   | 241 |   |   |   | (30 | ) |   |   | (12.5 | ) |
| Insurance      and taxes             |   |                                 | 783    |   |                     |   | 158 |   |   |   | 625 |   |   |   | 395.6 |   |
| Other                                |   |                                 | 968    |   |                     |   | 549 |   |   |   | 419 |   |   |   | 76.3 |   |
|  Total      noninterest expense |   | $                                    | 7,014  |   |                     | $      | 6,174 |   |   | $ | 840 |   |   |   | 13.6 | % |

|     |
|----------|
| 23  |

|                                                                               |   | Nine      Months Ended June 30, 2009Compared      to Nine Months Ended June      30, 2008 |   |
|------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|
|                                                                               |   | Increase      (Decrease) Due to                                                                |   |   |   |   |
|                                                                               |   |                                                                                           |   |   |   |   |   |   |   |
|                                                                               |   | Rate                                                                                           |   |   | Volume |   |   | Total |   |
|                                                                               |   | (in      thousands)                                                                            |   |
| Interest-earning      assets:                                                      |   |                                                                                           |   |   |   |   |   |   |   |
| Loans      receivable, net                                                         |   | $                                                                                              | (1,924 | ) |   | $ | (1,149 | ) |   | $ | (3,073 | ) |
| Loans      held for sale                                                           |   |                                                                                           | (2     | ) |   |   | 22 |   |   |   | 20 |   |
| Interest-bearing      deposits in other banks                                      |   |                                                                                           | (486   | ) |   |   | (352 | ) |   |   | (838 | ) |
| Mortgage-backed      securities                                                    |   |                                                                                           | (146   | ) |   |   | (6 | ) |   |   | (152 | ) |
| FHLB      stock                                                                    |   |                                                                                           | (143   | ) |   |   | - |   |   |   | (143 | ) |
| Total      net change in income on interest-        earning assets       |   | $                                                                                              | (2,701 | ) |   | $ | (1,485 | ) |   | $ | (4,186 | ) |
|                                                                               |   |                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                 |   |                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Savings      deposits                                                              |   | $                                                                                              | 6      |   |   | $ | 41 |   |   | $ | 47 |   |
| Interest-bearing      demand deposits                                              |   |                                                                                           | (71    | ) |   |   | (2 | ) |   |   | (73 | ) |
| Money      market accounts                                                         |   |                                                                                           | (575   | ) |   |   | (97 | ) |   |   | (672 | ) |
| Certificates      of deposit                                                       |   |                                                                                           | (1,630 | ) |   |   | (798 | ) |   |   | (2,428 | ) |
| Total      deposits                                                                |   |                                                                                           | (2,270 | ) |   |   | (856 | ) |   |   | (3,126 | ) |
| FHLB      advances                                                                 |   |                                                                                           | (172   | ) |   |   | (1,561 | ) |   |   | (1,733 | ) |
| Total      net change in expense on interest-        bearing liabilities |   | $                                                                                              | (2,442 | ) |   | $ | (2,417 | ) |   | $ | (4,859 | ) |
|  Total      increase in net interest income                                   |   |                                                                                           |   |   |   |   |   |   |   | $ | 673 |   |
|                                                                               |   |                                                                                           |   |   |   |   |   |   |   |   |   |   |

|   |
|--------|
| 24     |

|                                                                                                  |   | Nine      Months Ended June 30, |          |
|-------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------------|
|                                                                                                  |   | 2009                            |          |   | 2008 |   |   | Increase/ |   |
|                                                                                                  |   | Average      Balance            |          |   | Yield |   |   | Average      Balance |   |   | Yield |   |   | (Decrease)      in Interest      and Dividend      Income      from 2008 |   |
|                                                                                                  |   | (dollars      in thousands)     |          |
|                                                                                                  |   |                            |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      deposits in other           banks                           |   | $                               | 13,630        |   |   |   | 0.52 | % |   | $ | 35,301 |   |   |   | 3.37 | % |   | $ | (838 | ) |
| Mortgage-backed      securities                                                                       |   |                            | 181,898       |   |   |   | 4.63 |   |   |   | 182,080 |   |   |   | 4.73 |   |   |   | (152 | ) |
| Loans      receivable, net                                                                            |   |                            | 455,969       |   |   |   | 5.90 |   |   |   | 480,477 |   |   |   | 6.46 |   |   |   | (3,073 | ) |
| Loans      held for sale                                                                              |   |                            | 3,585         |   |   |   | 5.47 |   |   |   | 2,716 |   |   |   | 6.22 |   |   |   | 20 |   |
| FHLB      stock                                                                                       |   |                            | 9,591         |   |   |   | (0.46 | ) |   |   | 9,591 |   |   |   | 1.53 |   |   |   | (143 | ) |
|              Total interest-earning assets     |   | $                          |  664,673 |   |   |   |  5.35 | %  |   | $  |  710,165 |   |   |   |  5.79 | %  |   | $  |  (4,186 | )  |

|                                                         |   | Nine      Months Ended June 30, |    |
|--------------------------------------------------------------|--------|---------------------------------|---------|
|                                                         |   | 2009                            |    |   | 2008 |   |   | Increase/ |   |
|                                                         |   | Average      Balance            |    |   | Cost |   |   | Average      Balance |   |   | Cost |   |   | (Decrease)      in Interest Expense      from 2008 |   |
|                                                         |   | (dollars      in thousands)     |    |
|                                                         |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings      deposits                                        |   | $                               | 31,024  |   |   |   | 0.73 | % |   | $ | 23,570 |   |   |   | 0.70 | % |   | $ | 47 |   |
| Interest-bearing      demand    deposits |   |                            | 80,434  |   |   |   | 0.51 |   |   |   | 79,065 |   |   |   | 0.64 |   |   |   | (73 | ) |
| Money      market deposits                                   |   |                            | 52,532  |   |   |   | 1.26 |   |   |   | 57,793 |   |   |   | 2.69 |   |   |   | (672 | ) |
| Certificates      of deposit                                 |   |                            | 173,765 |   |   |   | 3.39 |   |   |   | 199,179 |   |   |   | 4.58 |   |   |   | (2,428 | ) |
| FHLB      advances                                           |   |                            | 115,833 |   |   |   | 4.44 |   |   |   | 162,471 |   |   |   | 4.59 |   |   |   | (1,733 | ) |
| Total      interest-bearing liabilities                 |   | $                               | 453,588 |   |   |   | 2.72 | % |   | $ | 522,078 |   |   |   | 3.60 | % |   | $ | (4,859 | ) |
|                                                         |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   |
|--------|
| 25     |

|                                                                     |   | At      or For the Nine Months Ended      June 30, |    |
|--------------------------------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                                                     |   | 2009                                                    |    |   | 2008 |   |
|                                                                     |   | (dollars      in thousands)                             |    |
| Provision      for loan losses                                           |   | $                                                       | 8,085   |   |   | $ | 1,317 |   |
| Net      charge-offs                                                     |   |                                                    | 4,398   |   |   |   | 505 |   |
| Allowance      for loan losses                                           |   |                                                    | 8,266   |   |   |   | 3,801 |   |
| Allowance      for loan losses as a percentage of gross loans receivable |   |                                                    | 1.93    | % |   |   | 0.80 | % |
| Nonperforming  loans                                           |   | $                                                       | 16,462  |   |   | $ | 3,462 |   |
| Allowance      for loan losses as a percentage of nonperforming loans    |   |                                                    | 50.21   | % |   |   | 109.79 | % |
| Nonperforming      loans as a percentage of gross loans receivable       |   |                                                    | 3.85    |   |   |   | 0.73 |   |
| Loans      receivable, net                                               |   | $                                                       | 418,198 |   |   | $ | 468,343 |   |

|                                                                                       |   | Nine      Months EndedJune      30, |   |   | Increase      (decrease) |   |
|--------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|--------------------------|--------|
|                                                                                       |   |                                |   |   |                     |   |   |   |   |   |   |   |
|                                                                                       |   | 2009                                |   |   | 2008                     |   |   | Amount |   |   | Percent |   |
|                                                                                       |   | (dollars      in thousands)         |   |
| Service      fees and charges                                                              |   | $                                   | 6,009  |   |                     | $      | 6,731 |   |   | $ | (722 | ) |   |   | (10.7 | )% |
| Gain      on sale of loans                                                                 |   |                                | 1,013  |   |                     |   | 560 |   |   |   | 453 |   |   |   | 80.9 |   |
| Increase      in cash surrender value          of bank owned life insurance |   |                                | 317    |   |                     |   | 314 |   |   |   | 3 |   |   |   | 1.0 |   |
| Loan      servicing fees                                                                   |   |                                | 54     |   |                     |   | 369 |   |   |   | (315 | ) |   |   | (85.4 | ) |
| Mortgage      servicing rights, net                                                        |   |                                | (31    | )      |                     |   | (206 | ) |   |   | 175 |   |   |   | 85.0 |   |
| Other                                                                                      |   |                                | 55     |   |                     |   | 75 |   |   |   | (20 | ) |   |   | (26.7 | ) |
| Total      noninterest income                                                              |   | $                                   | 7,417  |   |                     | $      | 7,843 |   |   | $ | (426 | ) |   |   | (5.4 | )% |

|     |
|----------|
| 26  |

|                                 |   | Nine      Months EndedJune      30, |   |   | Increase      (decrease) |   |
|--------------------------------------|--------|-------------------------------------|--------|--------|--------------------------|--------|
|                                 |   |                                |   |   |                     |   |   |   |   |   |   |   |
|                                 |   | 2009                                |   |   | 2008                     |   |   | Amount |   |   | Percent |   |
|                                 |   | (dollars      in thousands)         |   |
|                                 |   |                                |   |   |                     |   |   |   |   |   |   |   |
| Compensation      and benefits       |   | $                                   | 10,948 |   |                     | $      | 11,592 |   |   | $ | (644 | ) |   |   | (5.6 | )% |
| Occupancy      and equipment         |   |                                | 2,303  |   |                     |   | 2,242 |   |   |   | 61 |   |   |   | 2.7 |   |
| Data      processing                 |   |                                | 1,773  |   |                     |   | 1,668 |   |   |   | 105 |   |   |   | 6.3 |   |
| Advertising                          |   |                                | 656    |   |                     |   | 786 |   |   |   | (130 | ) |   |   | (16.5 | ) |
| Insurance      and taxes             |   |                                | 1,244  |   |                     |   | 383 |   |   |   | 861 |   |   |   | 224.8 |   |
| Other                                |   |                                | 2,695  |   |                     |   | 1,810 |   |   |   | 885 |   |   |   | 48.9 |   |
|  Total      noninterest expense |   | $                                   | 19,619 |   |                     | $      | 18,481 |   |   | $ | 1,138 |   |   |   | 6.2 | % |

|     |
|----------|
| 27  |

|                                     |   | Contract      orNotional      Amount |   |
|------------------------------------------|--------|--------------------------------------|--------|
|                                     |   | (in      thousands)                  |   |
| Commitments      to originate loans:     |   |                                 |   |
| Fixed      rate                          |   | $                                    | 8,109  |   |
| Adjustable      rate                     |   |                                 | 3,713  |   |
| Undisbursed      balance of loans closed |   |                                 | 6,919  |   |
| Unused      lines of credit              |   |                                 | 35,291 |   |
| Commercial      letters of credit        |   |                                 | 137    |   |
| Total                                    |   | $                                    | 54,169 |   |

|     |
|----------|
| 28  |

|     |
|----------|
| 29  |

| (a)   | Not      applicable. |
|-----------------|----------------------|

| (b)   | Not      applicable. |
|-----------------|----------------------|

| (c)   | Not      applicable. |
|-----------------|----------------------|

|     |
|----------|
| 30  |

|   2.1 | Plan      of Conversion and Reorganization (1)                                                                                                                                                                                |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   3.1 | Articles      of Incorporation of the Registrant (2)                                                                                                                                                                          |
|   3.2 | Bylaws      of the Registrant (2)                                                                                                                                                                                             |
| 10.1            | Amended      Employment Agreement entered into by Home Federal Bancorp, Inc. with Len      E. Williams(8)                                                                                                                     |
| 10.2            | Amended      Severance Agreement with Eric S. Nadeau(8)                                                                                                                                                                       |
| 10.3            | Amended      Severance Agreement with Steven D. Emerson(8)                                                                                                                                                                    |
| 10.4            | Amended      Severance Agreement with Steven K. Eyre(8)                                                                                                                                                                       |
| 10.5            | Form      of Home Federal Bank Employee Severance Compensation Plan    (3)                                                                                                                                                    |
| 10.6            | Form      of Director Indexed Retirement Agreement entered into by Home Federal      Savings and Loan Association of Nampa with each of its Directors      (2)                                                                |
| 10.7            | Form      of Director Deferred Incentive Agreement entered into by Home Federal      Savings and Loan Association of Nampa with each of its Directors      (2)                                                                |
| 10.8            | Form      of Executive Deferred Incentive Agreement, and amendment thereto, entered      into by Home Federal Savings and Loan Association of Nampa with Daniel L.      Stevens, Robert A. Schoelkoph, and Lynn A. Sander (2) |
| 10.9            | Form      of Amended and Restated Salary Continuation Agreement entered into by Home      Federal Savings and Loan Association of Nampa with Daniel L. Stevens      (2)                                                       |
| 10.10           | Amended      and Restated Salary Continuation Agreement entered into by Home Federal      Savings and Loan Association of Nampa with Len E.    Williams(8)                                                                    |
| 10.11           | Amended      and Restated Salary Continuation Agreement entered into by Home Federal      Savings and Loan Association of Nampa with Eric S.    Nadeau(8)                                                                     |
| 10.12           | Amended      and Restated Salary Continuation Agreement entered into by Home Federal      Savings and Loan Association of Nampa with Steven D.      Emerson(8)                                                                |
| 10.13           | Amended      and Restated Salary Continuation Agreement entered into by Home Federal      Savings and Loan Association of Nampa with Steven K.    Eyre(8)                                                                     |
| 10.14           | 2005      Stock Option and Incentive Plan approved by stockholders on June 23, 2005      and Form of Incentive Stock Option Agreement and Non-Qualified Stock      Option Agreement  (4)                            |
| 10.15           | 2005      Recognition and Retention Plan approved by stockholders on June 23, 2005      and Form of Award Agreement  (4)                                                                                            |
| 10.15           | Form      of new Director Retirement Plan entered into by Home Federal Bank with      each of its Directors (5)                                                                                                               |
| 10.16           | Transition      Agreement with Daniel L. Stevens (6)                                                                                                                                                                          |
| 10.17           | 2008      Equity Incentive Plan (7)                                                                                                                                                                                           |
| 31.1            | Certification      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act *                                                                                                                        |
| 31.2            | Certification      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act *                                                                                                                        |
| 32              | Certification      Pursuant to Section 906 of the Sarbanes-Oxley Act  *                                                                                                                                                       |

| (1)   | Filed      as an exhibit to the Registrant’s Current Report on Form 8-K dated May 11,      2007 |
|-----------------|-------------------------------------------------------------------------------------------------------|

| (2)   | Filed      as an exhibit to the Registrant's Registration Statement on Form S-1      (333-146289) |
|-----------------|---------------------------------------------------------------------------------------------------|

| (3)   | Filed      as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the      quarter ended December 31, 2008 |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Filed      as an exhibit to the Registrant’s Registration Statement on Form S-8      (333-127858) |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (5)   | Filed      as an exhibit to the Registrant’s Current Report on Form 8-K dated October      21, 2005 |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (6)   | Filed      as an exhibit to the Registrant’s Current Report on Form 8-K dated August      21, 2006 |
|-----------------|----------------------------------------------------------------------------------------------------------|

| (7)   | Filed      as an exhibit to the Registrant’s Registration Statement on Form S-8      (333-157540) |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (8)   | Filed      as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the      quarter ended March 31, 2009 |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

|     |
|----------|
| 31  |

|                            | Home Federal      Bancorp, Inc.                    |
|---------------------------------|---------------------------------------------------------|
|                            |                                                    |
|                            |                                                    |
|                            |                                                    |
| Date:  August 7, 2009 | /s/Len      E. Williams                            |
|                            | Len E.      Williams                               |
|                            | President      and                                 |
|                            | Chief Executive      Officer                       |
|                            | (Principal Executive      Officer)                 |
|                            |                                                    |
|                            |                                                    |
|                            |                                                    |
| Date:  August 7, 2009 | /s/Eric      S. Nadeau                             |
|                            | Eric S.      Nadeau                                |
|                            | Executive Vice      President and                  |
|                            | Chief Financial      Officer                       |
|                            | (Principal Financial      and Accounting Officer)  |

|     |
|----------|
| 32  |

| EXHIBIT      INDEX  |
|--------------------------|
|                     |   |
| 31.1                     | Certification      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act |
| 31.2                     | Certification      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act |
| 32                       | Certification      Pursuant to Section 906 of the Sarbanes-Oxley  Act |

|     |
|----------|
| 33  |