Filed by Home Federal Bancorp, Inc.
Pursuant to Rule 425 under the
Securities Act off 1933 and deemed
filed pursuant to Rule 14a-12 of
the Securities Exchange Act of 1934
Subject Company: Home Federal Bancorp, Inc.
Commission File No. 001-33795
Syndicated Stock Offering
NASDAQ: HOME
November 2007
Home Federal Bancorp, Inc.
Home Federal Bancorp, Inc. has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Home Federal Bancorp, Inc. has filed with the SEC for more complete information about Home Federal Bancorp, Inc. and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Home Federal Bancorp, Inc., or any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling (208) 468-5151.
Home Federal Bancorp, Inc. has filed a proxy statement/ prospectus concerning the conversion with the SEC. Shareholders of Home Federal Bancorp, Inc. are urged to read the proxy statement/ prospectus because it contains important information. Investors are able to obtain all documents filed with the SEC by Home Federal Bancorp, Inc. free of charge by visiting EDGAR on the SEC’s website at www.sec.gov. In addition, documents filed with the SEC by Home Federal Bancorp, Inc. are available free of charge from the Corporate Secretary of Home Federal Bancorp, Inc. at 500 12th Avenue South, Nampa, Idaho 83651, telephone (208) 466-4634 The directors, executive officers, and certain other members of management and employees of Home Federal Bancorp, Inc. are participants in the solicitation of proxies in favor of the conversion from the shareholders of Home Federal Bancorp, Inc. Information about the directors and executive officers of Home Federal Bancorp, Inc. is included in the proxy statement/ prospectus filed with the SEC.
The shares of common stock of Home Federal Bancorp, Inc. are not savings accounts or savings deposits, may lose value and are not insured by the Federal Deposit Insurance Corporation or any other government agency.
This presentation is for informational purposes only and does not constitute an offer to sell shares of common stock of Home Federal Bancorp, Inc. (HOME). Please refer to the prospectus dated November 9, 2007.
Certain comments made in the course of this presentation by HOME are forward-looking in nature. These include all statements about HOME’s operating results or financial position for periods ending or on dates occurring after June 30, 2007 and usually use words such as “expect”, “anticipate”, “believe”, and similar expressions. These comments represent management’s current beliefs, based upon information available to it at the time the statements are made with regard to the matters addressed.
All forward-looking statements are subject to risks and uncertainties that could cause HOME’s actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors of particular importance to HOME include, but are not limited to: (1) changes in general economic conditions, including interest rates; (2) competition among providers of financial services; (3) potential improvements or deterioration in asset quality; (4) failure to effectively utilize the net proceeds of the offering; and (5) price levels and conditions in the public securities market generally. Please refer to the prospectus for additional factors. HOME does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Page 2
Transaction Overview
Shares sold in subscription and community offering:
8%
Percent shares sold to ESOP:
TBD
Anticipated shares to be sold in Syndicated Offering:
TBD
Anticipated shares to be sold in Syndicated Offering:
Price per share:
$10.00
5% of stock sold in offering
Individual purchase limitation:
5% of stock sold in offering
In-concert purchase limitation:
TBD
Offering Range expectation:
Exchange ratio at: Min:1.1360 Mid:1.3364 Max:1.5369 Supermax:1.7674
$0.041
Expected quarterly dividend at midpoint:
2.42%
Insider ownership at midpoint:
NASDAQ / HOME (1)
Listing / Ticker:
Keefe, Bruyette & Woods
Syndicated Offering lead manager:
Expected Pricing:
TBD
Expected Trading:
TBD
(1) For a period of 20 trading days after the completion of the offering, Home Federal Bancorp Inc.’s common stock will trade under the symbol “HOMED.” Thereafter, Home Federal Bancorp, Inc.’s trading symbol will revert to “HOME.”
Page 3
Pro Forma Offering Range
Pro Forma Data* - At or for the 9 months ended June 30, 2007
MINIMUM
MIDPOINT
MAXIMUM
ADJUSTED
MAXIMUM
Shares sold in Offering
10,200,000
12,000,000
13,800,000
15,870,000
Pro Forma Shares Outstanding
17,303,110
20,356,600
23,410,090
26,921,604
Offering Price Per Share
$10.00
$10.00
$10.00
$10.00
Gross Proceeds ($000s)
$102,000
$120,000
$138,000
$158,700
Pro Forma Tangible Stockholders’ Equity ($000s)
$195,882
$211,247
$226,612
$244,283
Pro Forma Tangible Stockholders’ Equity per Share
$11.33
$10.38
$9.69
$9.08
Price / Tangible Book
88.26%
96.34%
103.20%
110.13%
Price / Earnings
23.44 x
26.79 x
30.00 x
32.61 x
Exchange Ratio
1.1360
1.3364
1.5369
1.7674
Pro Forma Stockholders’ Equity / Assets
24.06%
25.46%
26.82%
28.32%
*Information based upon assumptions in the Prospectus under "Pro Forma Data". Final valuation dependent on results of subscription and syndicate
offerings.
Page 4
Investment Highlights
Impressive Market Place
Experienced Management Team
Strong Asset Quality
Consistent Brand and Product Marketing
Franchise Expansion
Continue Planned Expansion of the Commercial Banking Line
Increased and Diversified Sources of Non Interest Income
Application of Effective Capital Management Strategies
Page 5
Our Market: Location
Home to the Blue Turf and the
Fiesta Bowl Champion Boise State University Broncos
Page 6
Market Demographics Summary
600,000 of Idaho’s 1.4 million residents live in the Boise Valley
Boise is rated as one of the best places to live and work by Forbes, the Wall Street Journal and Inc. Magazine
Farmers Insurance rates Boise as the most secure place to live among regions with populations over 500,000
Affordable: Cost of Living only 96% of the National Average
Pro Business Regulatory Environment
HOME’s values are deposit-weighted in the counties in which it operates
Source: SNL Financial
Projected Change in Population
2007-2012 (%)
8.9
6.3
12.0
17.5
-
5.0
10.0
15.0
20.0
HOME
ID
West
US
Projected Change in Median Household Income
2007 - 2012 (%)
19.7
17.3
20.8
17.6
-
4.0
8.0
12.0
16.0
20.0
24.0
HOME
ID
West
US
Page 7
Experienced Management Team
24
< 1
EVP – Consumer Banking
Steven K. Eyre
15
1
EVP – Commercial Banking
Steven D. Emerson
27
27
SVP, Treasurer, Secretary and CFO
Robert A. Schoelkoph,
CPA
30
1
President of Home Federal Bank; Director
Len E. Williams
35
12
President, CEO and Chairman of Home Federal
Bancorp
Daniel L. Stevens
Years of
Banking
Experience
Years at
Home
Federal
Title
Name
Page 8
Established Branch Network
15 Full-service banking offices
2 Loan centers
16 ATMs
Currently one branch under construction and 2 planned
for 2008 in the Boise Valley
Franchise Expansion in commercial and consumer dense
areas
Page 9
Total Loans & Assets
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Sep-02
Sep-03
Sep-04
Sep-05
Sep-06
Sep-07
Total Assets
Total Loans
Page 10
Loan Portfolio
Loan Portfolio as of 6/30/2007
1-4 Family
R.E.
52.4%
Multifamily &
Commercial
R.E.
28.6%
Commercial
0.8%
Construction
9.3%
Consumer &
H.E.
8.9%
Loan Portfolio Composition
($000s)
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
1-4 Family
R.E.
Multi-Family
& Comm.
R.E.
Construction
Commercial
Consumer &
H.E.
Sep-02
Jun-07
Quality, Sustainable, Profitable, Growth
No “sub-prime” loans
9/30 Quarterly Yield of 6.70%
Focused on Expansion of Commercial Banking
Page 11
Asset Quality
-
0.25
0.50
0.75
1.00
1.25
1.50
Sep-05
Sep-06
Dec-06
Mar-07
Jun-07
Sep-07
NPAs / Loans & REO (%)
-
0.05
0.10
0.15
0.20
0.25
2005 FY
2006 FY
2007Q1
2007Q2
2007Q3
2007Q4
0.40
0.45
0.50
0.55
0.60
0.65
0.70
0.75
NCOs/Avg. Loans
Reserves / Loans
Page 12
Deposit Mix
Deposit Composition as of 9/30/2007
Certificates
of Deposit
53.2%
Interest
Bearing
Demand
Deposits
31.6%
Noninterest
Bearing
Demand
Deposits
9.6%
Savings
Deposits
5.7%
Deposit Composition
($000s)
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
$225,000
$250,000
Savings
Demand
CDs
Sep-02
Sep-07
Focus on small business,
convenience and our stellar
service reputation to grow
core deposits
Compensation plans have
been aligned to drive growth
in low cost deposits
Page 13
Demographic Market Share by County
Source: SNL Financial
Canyon, ID
Overall
Rank
Comu.
Bank
Rank
Institution (ST)
Type
2007
Number
of
Branches
2007
Total
Deposits in
Market
($000)
2007
Total
Market
Share
(%)
1
Wells Fargo & Co. (CA)
Bank
7
276,785
19.72
2
1
Home Federal Bancorp (MHC) (ID)
Thrift
5
211,123
15.04
3
U.S. Bancorp (MN)
Bank
5
163,749
11.67
4
2
Cascade Bancorp (OR)
Bank
3
132,644
9.45
5
Washington Federal Inc. (WA)
Thrift
2
105,466
7.51
6
3
Idaho Independent Bank (ID)
Bank
2
101,234
7.21
7
KeyCorp (OH)
Bank
3
82,771
5.90
8
Washington Mutual Inc. (WA)
Thrift
3
73,381
5.23
9
4
Intermountain Community Bncp (ID)
Bank
2
68,507
4.88
10
Zions Bancorp. (UT)
Bank
3
56,243
4.01
11
Bank of America Corp. (NC)
Bank
1
42,002
2.99
12
5
D. L. Evans Bancorp (ID)
Bank
2
30,361
2.16
13
6
Glacier Bancorp Inc. (MT)
Bank
2
29,293
2.09
14
7
W.T.B. Financial Corp. (WA)
Bank
1
19,104
1.36
15
8
Syringa Bancorp (ID)
Bank
1
5,807
0.41
16
BNP Paribas Group
Bank
1
5,275
0.38
Total For Institutions In Market
43
1,403,745
Ada, ID
Overall
Rank
Comu.
Bank
Rank
Institution (ST)
Type
2007
Number
of
Branches
2007
Total
Deposits in
Market
($000)
2007
Total
Market
Share
(%)
1
U.S. Bancorp (MN)
Bank
26
1,487,731
24.92
2
Wells Fargo & Co. (CA)
Bank
17
1,049,049
17.57
3
KeyCorp (OH)
Bank
10
525,174
8.80
4
1
Cascade Bancorp (OR)
Bank
9
381,341
6.39
5
Bank of America Corp. (NC)
Bank
5
365,931
6.13
6
Washington Mutual Inc. (WA)
Thrift
11
311,856
5.22
7
Washington Federal Inc. (WA)
Thrift
7
280,921
4.71
8
2
W.T.B. Financial Corp. (WA)
Bank
5
266,684
4.47
9
3
Idaho Independent Bank (ID)
Bank
7
215,874
3.62
10
4
Syringa Bancorp (ID)
Bank
4
207,415
3.47
11
5
Idaho Bancorp (ID)
Bank
4
189,187
3.17
12
6
D. L. Evans Bancorp (ID)
Bank
4
158,856
2.66
13
7
Home Federal Bancorp (MHC) (ID)
Thrift
10
152,510
2.55
14
8
Banner Corp. (WA)
Bank
4
124,985
2.09
15
9
Glacier Bancorp Inc. (MT)
Bank
7
117,800
1.97
16
Zions Bancorp. (UT)
Bank
3
48,835
0.82
17
10
Sterling Financial Corp. (WA)
Bank
3
46,780
0.78
18
11
Idaho Trust Bancorp (ID)
Bank
1
27,356
0.46
19
BNP Paribas Group
Bank
2
12,198
0.20
Total For Institutions In Market
139
5,970,483
Gem, ID
Overall
Rank
Comu.
Bank
Rank
Institution (ST)
Type
2007
Number
of
Branches
2007
Total
Deposits in
Market
($000)
2007
Total
Market
Share
(%)
1
Wells Fargo & Co. (CA)
Bank
1
66,994
44.51
2
1
Home Federal Bancorp (MHC) (ID)
Thrift
1
32,742
21.75
3
U.S. Bancorp (MN)
Bank
1
30,884
20.52
4
KeyCorp (OH)
Bank
1
19,898
13.22
Total For Institutions In Market
4
150,518
Elmore, ID
Overall
Rank
Comu.
Bank
Rank
Institution (ST)
Type
2007
Number
of
Branches
2007
Total
Deposits in
Market
($000)
2007
Total
Market
Share
(%)
1
Wells Fargo & Co. (CA)
Bank
2
51,767
32.84
2
Washington Mutual Inc. (WA)
Thrift
1
31,681
20.10
3
U.S. Bancorp (MN)
Bank
2
31,379
19.91
4
1
Home Federal Bancorp (MHC) (ID)
Thrift
1
24,522
15.56
5
2
Idaho Independent Bank (ID)
Bank
1
18,266
11.59
Total For Institutions In Market
7
157,615
Page 14
Deposits
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Sep-02
Sep-03
Sep-04
Sep-05
Sep-06
Sep-07
Page 15
Net Interest Margin
3.57
3.33
3.05
3.00
3.02
3.04
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
2005 FY
2006 FY
2007Q1
2007Q2
2007Q3
2007Q4
Page 16
Non Interest Income / Operating Revenue
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
2005 FY
2006 FY
2007Q1
2007Q2
2007Q3
2007Q4
Page 17
Efficiency Ratio
40.0
45.0
50.0
55.0
60.0
65.0
70.0
75.0
80.0
85.0
90.0
2005 FY
2006 FY
2007Q1
2007Q2
2007Q3
2007Q4
1.35
1.40
1.45
1.50
1.55
1.60
1.65
1.70
1.75
1.80
1.85
Efficiency Ratio
Net Op Expenses / Avg. Assets
Page 18
Historical Capital Management
$-
$0.01
$0.02
$0.03
$0.04
$0.05
$0.06
$0.07
Jun-
05
Sep-
05
Dec-
05
Mar-
06
Jun-
06
Sep-
06
Dec-
06
Mar-
07
Jun-
07
Sep-
07
Dec-
07
Cash Dividends per Share ($)
Stock Buyback History
7/25/05: The board approves the repurchase of up to 298,092 shares
to fund the company’s 2005 recognition and
retention plan
9/6/05: Completes repurchase of 298,092 shares (1.96% of total shares) at an average price of $13.09 per share
Dividend Yield: 1.80%*
*Based on a current market value of $12.25 as of
November 19, 2007
Page 19
Recap of Strategic Objectives
Growth in Existing Markets
Continue with Disciplined Execution
Hire Experienced, Targeted Employees with Customer Service Focus
Expand Product Offerings
Increase Core Transaction Deposits
Commitement to Return Excess Captial
Page 20
THANK YOU!
Home Federal Bancorp, Inc.
Proposed Holding Company for
Syndicated Stock Offering
NASDAQ: HOME
November 2007
Page 21