Home Federal Bancorp, Inc. Announces Third Quarter Results

NAMPA, Idaho, July 27, 2010 (GLOBE NEWSWIRE) -- Home Federal Bancorp, Inc. (the "Company") (Nasdaq:HOME), the parent company of Home Federal Bank (the "Bank"), today announced third quarter results for the fiscal year ending September 30, 2010. For the quarter ended June 30, 2010, the Company reported a net loss of ($1.9 million), or ($0.12) per diluted share, compared to a net loss of ($1.2 million), or ($0.08) per diluted share, for the same period a year ago. For the nine months ended June 30, 2010, the Company reported a net loss of ($3.9 million), or ($0.25) per diluted share, compared to a net loss of ($1.6 million), or $(0.10) per diluted share, for the same period last year. Total assets increased $17.1 million, or 2.0%, from $852.1 million at March 31, 2010, to $869.2 million at June 30, 2010.

The following summarizes key activities of the Company during the quarter ended June 30, 2010:

• Deposits increased $20.0 million during the quarter as core deposits (checking, money market and savings accounts) increased $29.1 million
• Cash and cash equivalents continued to increase as a result of strong deposit growth and declining loan balances
• Gross loans declined $32.2 million from the linked quarter as quality loan demand remains weak
• Nonperforming assets decreased $3.4 million from the linked quarter to $60.6 million
• Provision for loan losses totaled $3.3 million while net charge-offs totaled $4.0 million. The Company also adjusted certain preliminary estimated fair values related to loans purchased in the August 7, 2009, acquisition of the failed Community First Bank (the "Acquisition"), resulting in a decrease in the allowance for loan losses and the indemnification receivable from the Federal Deposit Insurance Corporation ("FDIC")
• Valuation adjustments on real estate owned totaled $418,000
• The Bank received $4.1 million in reimbursed losses from the FDIC on assets covered under the loss share agreement in connection with the Acquisition.

On August 7, 2009, the Company purchased certain assets and assumed certain liabilities of Community First Bank located in Prineville, Oregon in an FDIC-facilitated acquisition, which has been incorporated prospectively in the Company's financial statements. Therefore, year over year results of operations may not be comparable.