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Home Federal Bancorp, Inc. Declares Quarterly Cash Dividend

Home Federal Bancorp, Inc. (the "Company") (NASDAQ: HOME), the parent company of Home Federal Bank, announced today that its Board of Directors declared a quarterly cash dividend of $0.055 per share on its common stock, an increase of 10% from the dividend paid in the prior quarter. The dividend will be paid on March 24, 2006 to stockholders of record as of March 10, 2006.

"We are pleased to pay our fourth consecutive cash dividend for the Company since the completion of our mutual holding company reorganization and minority stock offering on December 6, 2004," stated Daniel L. Stevens, President, Chairman, and CEO of the Company. "Home Federal continues to leverage the positive aspects of the strong and growing local economy and a very dynamic Southwest Idaho housing market."

The Company is the majority-owned subsidiary of Home Federal MHC, a federally-chartered mutual holding company, which owns 59.26% of the Company's outstanding shares. Home Federal MHC has filed a notice with the Office of Thrift Supervision of its intent to waive the receipt of dividends paid on the shares it owns of the Company.

Home Federal Bancorp, Inc. is a savings and loan holding company headquartered in Nampa, Idaho. It is the parent company of Home Federal Bank, a federal savings bank that was originally organized in 1920 as a building and loan association. The Company serves the Treasure Valley region of southwestern Idaho, that includes Ada, Canyon, Elmore and Gem Counties, through 14 full-service banking offices and two mortgage loan centers. The Company's common stock is traded on the NASDAQ National Market System under the symbol "HOME." The Company's stock is also included in the prestigious America's Community Bankers NASDAQ Index. For more information, visit the Company web site at www.myhomefed.com.

Forward-Looking Statements:

Statements in this report regarding future events, performance or results are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA") and are made pursuant to the safe harbors of the PSLRA. Actual results could be materially different from those expressed or implied by the forward-looking statements. Factors that could cause results to differ include but are not limited to: the ability to maintain current dividend payments or increase dividend payouts to stockholders, regulatory capital requirements, future earnings and cash flow of the Company, regulatory changes and general economic conditions. Additional factors that could cause actual results to differ materially are disclosed in Home Federal Bancorp, Inc.'s recent filings with the SEC, including but not limited to Annual Reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Forward-looking statements are accurate only as of the date released, and we do not undertake any responsibility to update or revise any forward-looking statements to reflect subsequent events or circumstances.

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