Home Federal Bancorp, Inc., Announces Purchase And Assumption Of LibertyBank In Eugene, Oregon

NAMPA, Idaho, July 30, 2010 (GLOBE NEWSWIRE) -- Home Federal Bancorp, Inc. (the "Company") (Nasdaq:HOME), announced today that its subsidiary, Home Federal Bank (the "Bank"), has acquired the banking operations of LibertyBank of Eugene, Oregon, in a transaction facilitated by the Federal Deposit Insurance Corporation (the "FDIC"). This is the second FDIC-assisted transaction for Home Federal Bank following its August 7, 2009, acquisition of the banking operations of Community First Bank of Prineville, Oregon.

Based on preliminary financial information, the acquisition by Home Federal Bank includes approximately $387 million of assets, including $94 million of cash and securities and $264 million of loans. Deposits assumed in the acquisition total approximately $689 million, which includes all insured and uninsured deposits. Other real estate owned acquired in the transaction totaled approximately $21 million. The transaction also includes the purchase of other assets and liabilities. The Bank anticipates an additional cash settlement of approximately $300 million due to the assumption of net liabilities by Home Federal Bank. All balances above are subject to final closing and pro forma adjustments to the balance sheet accounts of LibertyBank as of July 30, 2010, and are subject to change.

Home Federal Bank acquired the assets of LibertyBank at a discount of $29.9 million and the deposit liabilities at a deposit premium of 1.0%. The purchased loans, excluding consumer and deposit secured loans, and real estate owned are covered by a loss share agreement between the FDIC and Home Federal Bank. Under the loss share agreement, the FDIC has agreed to cover 80% of the losses on the disposition of the loans and real estate owned. The Bank also acquired the operations of Commercial Equipment Lease Corporation, a commercial leasing subsidiary of LibertyBank. The leases of the subsidiary are included as covered assets under the loss share agreement.