Home Federal Launches Business Banking Division This Week

Company adds Cindy Bateman to team of veteran bankers

Nampa, ID (March 20, 2007) - Home Federal Bancorp, Inc. (Nasdaq GM: HOME) announced today that Home Federal Bank has taken the final step toward launching a business banking division by hiring Cindy L. Bateman as Senior Vice President and Commercial Banking Team Lead.

Prior to her move, Bateman served as Senior Vice President and District Business Leader for KeyBank of Idaho. She has 24 years of banking experience and joins business banking veterans Len Williams, president of Home Federal Bank, Steven Emerson, senior vice president and chief lending officer, and Lynn Sander, senior vice president of Retail Banking—all of whom are charged with building the strongest bank headquartered in Idaho.

"Cindy’s hire is a major accomplishment and an important final step in laying the foundation for a new Home Federal Business Banking division," said Williams. "The recent recruitment of major industry players such as Cindy and Steve Emerson affirms our dedication to developing a team of proven executives to lead Home Federal Bank, as we build what we envision to be Treasure Valley’s premier bank."

Williams said Home Federal’s Business Banking division officially launches this week, offering commercial and small business banking services.

Commercial Banking services are tailored for small to medium-sized businesses with annual revenue of $2-$30 million, and include checking and savings, real estate and equipment loans, equity loans, cash management, operating lines of credit and online banking, to name a few.

Small Business Banking services are geared toward companies with annual revenue of $2 million or less. Products include checking and savings, a business line of credit, business cards, and a website hosted by Home Federal, all in one simple package.

Emerson said the advantage that Home Federal’s business banking division has over other banks in the market is the capacity for local decision making, understanding of the local market and "the ability to grow with our clients and their capital needs."

Since its inception in 1920, Home Federal Bank has focused on consumer and retail banking. The company has been successful in those areas, growing to 17 stores throughout Idaho and converting in 2004 from a federal mutual savings and loan association to a federally-chartered stock savings bank and publicly-traded entity. Financial performance has been strong. Net income for fiscal year ’06 was $6.2 million compared to $5.3 million for the previous year.

"We’re diversifying," said Williams, "but we’re not going to lose sight of consumer and retail. We built the bank with those services and remain loyal to the thousands of customers who depend on us for them. Lynn Sander, one of the best in the business, will continue leading that charge," he said.

About Home Federal Bank

Home Federal Bank is the largest, locally owned bank in the Treasure Valley, headquartered in Nampa, Idaho since opening its doors in 1920. The company operates a total of 17 locations, including six full-service stores inside Wal-Mart Supercenters, nine full-service traditional stores, and two lending centers, all of which are located in the southwestern region of Idaho that includes Ada, Canyon, Elmore and Gem counties. Home Federal Bank’s parent company is Home Federal Bancorp, Inc., a federally chartered savings and loan holding company also headquartered in Nampa, Idaho. For more information, visit Home Federal Bank on the Web at www.myhomefed.com.