<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>homf_def14a.txt
<DESCRIPTION>HOME FEDERAL PROXY
<TEXT>
                                  SCHEDULE 14A
                     Information Required in Proxy Statement

                            SCHEDULE 14A INFORMATION
                    Proxy Statement Pursuant to Section 14(a)
                     of the Securities Exchange Act of 1934

Filed by the Registrant:        Yes.

Filed by a Party other than the Registrant:  Yes.

Check the appropriate box:

[ ]      Preliminary Proxy Statement
[ ]      Confidential, for Use of the Commission Only (as Permitted by
         Rule 14a-6(e)(2))
[X]      Definitive Proxy Statement
[ ]      Definitive Additional Materials
[ ]      Soliciting Material Pursuant to Section 240.14a-11(c) or
         Section 240.14a-12

                              HOME FEDERAL BANCORP
                (Name Of Registrant As Specified In Its Charter)

                              HOME FEDERAL BANCORP
                   (Name of Person(s) Filing Proxy Statement)

Payment of Filing Fee (Check the appropriate box):

[X]      No fee required
[ ]      Fee computed on table below per Exchange Act Rules 14a-6(i)(4)
         and 0-11
         (1)      Title of each class of securities to which transaction
                  applies:             N/A
         (2)      Aggregate number of securities to which transaction
                  applies:             N/A
         (3)      Per unit price or other underlying value of transaction
                  computed pursuant to Exchange Act Rule 0-11 (Set forth
                  the amount on which the filing fee is calculated and
                  state how it was determined):     N/A
         (4)      Proposed maximum aggregate value of transaction:     N/A
         (5)      Total fee paid:
[ ]      Fee paid previously with preliminary materials
[ ]      Check box if any part of the fee is offset as provided by
         Exchange Act Rule 0-11(a)(2) and identify the filing for which
         the offsetting fee was paid previously.  Identify the previous
         filing by registration statement number, or the Form or
         Schedule and the date of its filing.       N/A
         (1)      Amount Previously Paid:
         (2)      Form, Schedule or Registration Statement No.:
         (3)      Filing Party:
         (4)      Date Filed:
<PAGE>

                              HOME FEDERAL BANCORP
                             501 Washington Street
                            Columbus, Indiana 47201
                                 (812) 522-1592

                    ----------------------------------------
                    NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
                    ----------------------------------------

                          To Be Held On April 26, 2005

     Notice is hereby  given that the Annual  Meeting  of  Shareholders  of Home
Federal  Bancorp  (the  "Corporation")  will be held at the Hampton  Inn, 247 N.
Sandy Creek Drive, Seymour,  Indiana, on Tuesday,  April 26, 2005, at 3:00 P.M.,
Eastern Standard Time.

     The Annual Meeting will be held for the following purposes:

     1.   Election of Directors.  Election of two  directors of the  Corporation
          for terms expiring in 2008.

     2.   Other  Business.  Such other  matters as may properly  come before the
          meeting or any adjournment thereof.

     Shareholders  of record at the close of  business  on March 14,  2005,  are
entitled to vote at the meeting or any adjournment thereof.

     We urge you to read the enclosed Proxy Statement  carefully so that you may
be informed  about the business to come before the meeting,  or any  adjournment
thereof. At your earliest  convenience,  please sign and return the accompanying
proxy in the postage-paid envelope furnished for that purpose.

     A copy of the  Corporation's  Annual Report for the year ended December 31,
2004,  is  enclosed.  The  Annual  Report is not a part of the proxy  soliciting
material enclosed with this letter.


                                By Order of the Board of Directors

                                /s/ John K. Keach, Jr.

                                John K. Keach, Jr.
                                Chairman of the Board, President and
                                Chief Executive Officer

Columbus, Indiana
March 25, 2005

IT IS IMPORTANT THAT PROXIES BE RETURNED PROMPTLY. THEREFORE, WHETHER OR NOT YOU
PLAN TO BE  PRESENT  IN PERSON AT THE  ANNUAL  MEETING,  PLEASE  SIGN,  DATE AND
COMPLETE  THE  ENCLOSED  PROXY AND  RETURN  IT IN THE  ENCLOSED  ENVELOPE  WHICH
REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES.

<PAGE>

                              HOME FEDERAL BANCORP
                             501 Washington Street
                            Columbus, Indiana 47201
                                 (812) 522-1592

                                ---------------
                                PROXY STATEMENT
                                ---------------

                       FOR ANNUAL MEETING OF SHAREHOLDERS
                                 APRIL 26, 2005

     This Proxy  Statement is being  furnished  to the holders of common  stock,
without par value ("Common Stock"), of Home Federal Bancorp ("the Corporation"),
an Indiana  corporation,  in connection with the  solicitation of proxies by the
Board  of  Directors  of  the  Corporation  for  use at the  Annual  Meeting  of
Shareholders of the Corporation to be held at 3:00 p.m.,  Eastern Standard Time,
at the Hampton  Inn, 247 N. Sandy Creek Drive,  Seymour,  Indiana,  on April 26,
2005, and at any and all  adjournments  of such meeting.  The principal asset of
the Corporation  consists of 100% of the issued and outstanding shares of Common
Stock,  $.01 par value per share, of HomeFederal  Bank (the "Bank"),  an Indiana
commercial bank based in Columbus,  Indiana. This Proxy Statement is expected to
be mailed to Shareholders on or about March 25, 2005.

     A  Notice  of  Annual  Meeting  and  form of  proxy  accompany  this  Proxy
Statement.  Any  Shareholder  giving  a proxy  has the  right  to  revoke  it by
delivering written notice to the Secretary of the Corporation, by filing a later
proxy, or in person at the meeting,  at any time before such proxy is exercised.
All proxies will be voted in accordance  with the directions of the  Shareholder
and, to the extent no directions are given, will be voted "for" item 1.

                VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF

     Only Shareholders of record at the close of business on March 14, 2005 (the
"Voting Record Date"),  will be eligible to vote at the Annual Meeting or at any
adjournment  thereof.  Such Shareholders are entitled to one vote for each share
then  held.  As of that  date,  the  Corporation  had  4,001,796  shares  of the
Corporation's  Common  Stock  issued and  outstanding.  A majority  of the votes
entitled to be cast, in person or by proxy,  at the Annual  Meeting is necessary
for a quorum.  In  determining  whether a quorum is  present,  Shareholders  who
abstain,  cast broker  non-votes,  or withhold  authority to vote on one or more
director nominees will be deemed present at the Annual Meeting.


     Management  knows of no person  who held  more  than 5% of the  outstanding
shares of the Corporation's Common Stock on March 14, 2005.

                      PROPOSAL I -- ELECTION OF DIRECTORS

     The Corporation's Board of Directors currently consists of six members. All
of the directors  except John K. Keach,  Jr. meet the standards for independence
of Board members set forth in the Listing Standards for the National Association
of Securities  Dealers.  The  Corporation's  By-laws  provide that the directors
shall be divided  into  three  classes  as nearly  equal in number as  possible.
Directors of the  Corporation  are  generally  elected to serve for a three-year
period or until their respective  successors are elected and qualified.  The two
nominees for election as a director  this year are John K. Keach,  Jr. and David
W. Laitinen,  MD, each of whom currently serves as a director. Mr. Keach and Dr.
Laitinen each have been nominated to serve for a three-year term ending in 2008.

     The following table sets forth certain  information  regarding the nominees
for  election as a director  and each  director  continuing  in office after the
Annual Meeting. It is intended that the proxies solicited on behalf of the Board
of Directors (other than proxies as to which  authorization is withheld) will be
voted at the Annual Meeting for the election of the nominees  identified  below.
If any  nominee  is unable  or  declines  to serve (an event  which the Board of
Directors does not anticipate), the proxies will have discretionary authority to
vote for a  substitute  nominee  named by the  Board of  Directors  if the Board
elects to fill such


<PAGE>
nominee's  position.  The  table  also sets  forth  the  number of shares of the
Corporation's  Common Stock  beneficially owned by certain executive officers of
the Corporation  and by all directors and executive  officers of the Corporation
as a group.
<TABLE>
<CAPTION>
                                                                                             Shares of
                                    Positions         Director      Director               Common Stock
                                       Held            of the        of the       Term     Beneficially    Percent
                                     With the           Bank      Corporation      to        Owned on         of
Name                     Age       Corporation          Since        Since       Expire     3/14/05 (1)     Class
---------------------    ---       -----------        --------    -----------    ------    -------------   -------
Director Nominees
<S>                       <C>                           <C>          <C>          <C>       <C>     <C>      <C>
John K. Keach, Jr.        53  Chairman of the Board,    1990         1990         2008      201,508 (2)      4.9%
                                   President and
                              Chief Executive Officer
David W. Laitinen, MD     52         Director           1990         1990         2008       45,197 (3)      1.1%

Directors Continuing In Office
John T. Beatty            54         Director           1991         1992         2007       28,310 (4)       .7%
Harold Force              53         Director           1991         1992         2007       32,757 (5)       .8%
John M. Miller            54         Director           2002         2002         2006       18,000 (6)       .4%
Harvard W. Nolting, Jr.   65         Director           1988         1990         2006       67,714 (7)      1.7%
Executive Officers
Charles R. Farber         55 Executive Vice President                                        20,976 (8)       .5%
S. Elaine Pollert         45 Executive Vice President                                       112,953 (9)      2.8%
Lawrence E. Welker        57 Executive Vice President,                                      139,525 (10)     3.4%
                              Chief Financial Officer,
                              Treasurer and Secretary
All executive officers and
directors as a group (9 persons)                                                            666,940(11)     15.3%
--------------------------------
* Less than 1%.
</TABLE>

(1)  Includes shares  beneficially owned by members of the immediate families of
     the directors,  director nominees,  or executive officers residing in their
     homes.  Unless  otherwise  indicated,  each nominee,  director or executive
     officer has sole investment  and/or voting power with respect to the shares
     shown as beneficially owned by him or her.

(2)  Includes  62,457  shares  held  jointly by Mr.  Keach and his wife,  19,562
     shares  held by his wife and  children,  100,017  shares  subject  to stock
     options  granted under the  Corporation's  stock option  plans,  and 18,514
     whole shares  allocated as of December 31,  2004,  to Mr.  Keach's  account
     under the 401(k)  Plan.  Does not include  stock  options for 7,528  shares
     which are not  exercisable  within a period of 60 days following the Voting
     Record Date.

(3)  Includes  25,476  shares held jointly by Dr.  Laitinen and his wife,  6,842
     shares held by Mrs. Laitinen for their children,  and 12,879 shares subject
     to stock options granted under the Corporation's stock option plans.

(4)  Includes  15,431 shares held jointly by Mr. Beatty and his wife, and 12,879
     shares  subject to stock  options  granted  under the  Corporation's  stock
     option plans.

(5)  Includes  225 shares  held  jointly by Mr.  Force and his wife,  and 12,879
     shares  subject to stock  options  granted  under the  Corporation's  stock
     option plans.

(6)  Includes 500 shares held by wife and children, and stock options for 13,500
     shares granted under one of the Corporation's stock option plans.

(7)  Includes   12,879  shares  subject  to  stock  options  granted  under  the
     Corporation's stock option plans.

(8)  Includes  19,136 shares  subject to stock options  granted under one of the
     Corporation's  stock  option  plans and 840 whole  shares  allocated  as of
     December 31, 2004, to Mr. Farber's  account under the 401(k) Plan. Does not
     include  stock  options for 864 shares which are not  exercisable  within a
     period of 60 days following the Voting Record Date.

(9)  Includes   80,426  shares  subject  to  stock  options  granted  under  the
     Corporation's  stock option  plans and 4,868 whole  shares  allocated as of
     December 31, 2004, to Ms. Pollert's account under the 401(k) Plan. Does not
     include stock options for 16,224 shares which are not exercisable  within a
     period of 60 days following the Voting Record Date.

(10) Includes   96,650  shares  subject  to  stock  options  granted  under  the
     Corporation's  stock option  plans and 3,691 whole  shares  allocated as of
     December 31, 2004, to Mr. Welker's account under the 401(k) Plan.

(11) Includes  361,245  shares  subject  to  stock  options  granted  under  the
     Corporation's  stock option  plans and 27,913 whole shares  allocated as of
     December 31, 2004, to the accounts of participants in the 401(k) Plan. Does
     not include  stock  options  for 24,616  shares  which are not  exercisable
     within a period of 60 days following the Voting Record Date.

                                       2
<PAGE>

     The  business  experience  of  each of the  above  directors  and  director
nominees for at least the past five years is as follows:


     John T. Beatty is President and Treasurer of Beatty Insurance, Inc.

     Harold Force has been President of Force Construction  Company,  Inc. since
1976. He also serves as Executive Vice President of Force Design, Inc.

     John K. Keach,  Jr. has been  employed by the Bank since 1974.  In 1985, he
was elected  Senior  Vice  President  -  Financial  Services,  in 1987 he became
Executive Vice  President,  and in 1988 he became  President and Chief Operating
Officer.  In 1994, he became President and Chief Executive Officer.  In 1999, he
was appointed Chairman of the Board of Directors of the Corporation.

     David W. Laitinen,  MD has been an orthopedic  surgeon in Seymour,  Indiana
since 1983.

     John  M.  Miller  has  served  as  President  of  Best  Beers,  Inc.  (beer
distributor) in Bloomington, Indiana, for more than five years.

     Harvard W.  Nolting,  Jr. was a co-owner of Nolting  Foods,  Inc.  (grocery
chain) for over 30 years before his retirement in 1994.

     Directors  will be elected upon receipt of a plurality of votes cast at the
Annual Meeting.  Plurality means that individuals who receive the largest number
of votes cast are elected up to the maximum  number of directors to be chosen at
the meeting. Abstentions, broker non-votes, and instructions on the accompanying
proxy to withhold  authority to vote for one or more of the nominees will result
in the respective nominees receiving fewer votes.  However,  the number of votes
otherwise received by the nominee will not be reduced by such action.

Meetings and Committees of the Board of Directors of the Corporation

     The Board of  Directors  meetings  are  generally  held once in each of two
months  in a  fiscal  quarter.  The  Board  of  Directors  held a total of eight
meetings during the year ended December 31, 2004. No incumbent director attended
fewer than 75% of the sum of the meetings of the Board of  Directors  held while
he served as a director and the meetings of committees on which he served during
that period. The Board of Directors of the Corporation has an Audit Committee, a
Compensation Committee, a Stock Option Committee and a Nominating and Governance
Committee, among its other Board committees. All committee members are appointed
by the Board of Directors.

     The Audit Committee, comprised of Messrs. Beatty (Chairman), Miller, Force,
Nolting,  Jr. and Dr. Laitinen,  recommends the appointment of the Corporation's
independent accountants in connection with its annual audit, and meets with them
to outline the scope and review the results of such audit.  That  committee  met
four times during the year ended December 31, 2004.

     The Board of Directors of the Corporation has a Compensation Committee, the
members of which are Messrs.  Nolting, Jr. (Chairman),  Miller and Dr. Laitinen,
which  reviews  payroll  costs and salary  recommendations  and  determines  the
compensation of the Corporation's  officers.  During the year ended December 31,
2004, the Compensation Committee met one time.

     The  Corporation's  Stock Option  Committee  administers the  Corporation's
stock option plans. It did not meet during the year ended December 31, 2004. Its
members are all of the directors except Mr. Keach, Jr. All of the members of the
Compensation  Committee and of the Stock Option Committee meet the standards for
independence  for  compensation  committee  members  set  forth  in the  Listing
Standards of the National Association of Securities Dealers.

     The Corporation's  Nominating and Governance  Committee nominated the slate
of directors set forth in the Proxy  Statement.  The  Nominating  and Governance
Committee held two meetings during the year ended


                                       3
<PAGE>

December 31, 2004. The members of the  Nominating  and Governance  Committee for
the  2005  Annual  Meeting  were  Messrs.  Force  (Chairman),  Nolting,  and Dr.
Laitinen,  although  Dr.  Laitinen  abstained  from  the  vote of the  Committee
nominating  the  current  director  nominees.  All of  these  members  meet  the
standards for  independence  for nominating  committee  members set forth in the
Listing  Standards  of the  National  Association  of  Securities  Dealers.  The
Nominating    and    Governance    Committee's    charter   is    available   at
http://www.homf.com.

     The Nominating and Governance Committee will consider the nomination of any
Shareholder of the Corporation entitled to vote for the election of directors at
the  meeting  who has given  timely  notice in writing to the  Secretary  of the
Corporation  as  provided  in  the  Corporation's   By-laws.  To  be  timely,  a
Shareholder's  notice  must  be  delivered  to or  mailed  and  received  by the
Secretary of the Corporation not less than 60 days prior to the meeting,  unless
less than 70 days' notice or prior public  disclosure of the date of the meeting
is given or made to  Shareholders  (which  notice  or  public  disclosure  shall
include the date of the Annual Meeting specified in publicly-available  By-laws,
if the  Annual  Meeting  is held on such  date),  in which  case the notice by a
Shareholder must be received no later than the close of business on the 10th day
following  the day on which such notice of the date of the meeting was mailed or
such public disclosure was made.

     Although the  Nominating and  Governance  Committee will consider  nominees
recommended by Shareholders,  it has not actively solicited  recommendations for
nominees from  Shareholders nor has it established  procedures for this purpose,
as it will  address  nominations  on a case by case basis.  When  considering  a
potential candidate for membership on the Corporation's Board of Directors,  the
Nominating and Governance Committee considers diversity,  age, skills,  relevant
business and industry  experience,  and independence under the Listing Standards
of the National Association of Securities Dealers. The Nominating and Governance
Committee does not have specific  minimum  qualifications  that must be met by a
Nominating  and Governance  Committee-recommended  candidate and has no specific
process for identifying such candidates.  There are no differences in the manner
in which the Nominating and Governance  Committee  evaluates a candidate that is
recommended  for  nomination  for  membership  on  the  Corporation's  Board  of
Directors by a Shareholder.  The  Nominating  and  Governance  Committee has not
received any such recommendations from any of the Corporation's  Shareholders in
connection with the Annual Meeting.

     The Corporation  has adopted a policy for its  Shareholders to send written
communications to the Corporation's directors.  Under this policy,  Shareholders
may send written communications in a letter by first-class mail addressed to any
director at the  Corporation's  main office.  The Corporation has also adopted a
policy that strongly  encourages  its directors to attend each Annual Meeting of
Shareholders.  All of the  Corporation's  seven  directors  at the  time  of the
meeting attended the Annual Meeting of Shareholders held on April 27, 2004.

Audit Committee Report, Charter, and Independence

     Audit Committee Report. The Audit Committee reports as follows with respect
to the  audit of the  Corporation's  financial  statements  for the  year  ended
December 31,  2004,  included in the  Corporation's  Shareholder  Annual  Report
accompanying this Proxy Statement ("2004 Audited Financial Statements"):

          The  Committee  has  reviewed and  discussed  the  Corporation's  2004
     Audited Financial Statements with the Corporation's management.

          The Committee has discussed with its independent  auditors (Deloitte &
     Touche LLP) the matters  required to be  discussed by Statement on Auditing
     Standards 61, as amended, which include, among other items, matters related
     to the conduct of the audit of the Corporation's financial statements.

          The Committee has received written disclosures and the letter from the
     independent auditors required by Independence  Standards Board Standard No.
     1 (which relates to the auditors' independence


                                       4
<PAGE>

     from the Corporation  and its related  entities) and has discussed with the
     auditors the auditors'  independence  from the  Corporation.  The Committee
     considered  whether the provision of services by its independent  auditors,
     other than audit  services  including  reviews of Forms 10-Q, is compatible
     with maintaining the auditors' independence.

          Based on review and  discussions  of the  Corporation's  2004  Audited
     Financial Statements with management and with the independent auditors, the
     Audit   Committee   recommended   to  the  Board  of  Directors   that  the
     Corporation's  2004  Audited  Financial   Statements  be  included  in  the
     Corporation's  Annual  Report on Form 10-K for the year ended  December 31,
     2004.

          This Report is  respectfully  submitted by the Audit  Committee of the
     Corporation's Board of Directors.

                            Audit Committee Members
                            -----------------------
                                 John T. Beatty
                                 John M. Miller
                                  Harold Force
                             David W. Laitinen, MD
                            Harvard W. Nolting, Jr.

     Audit  Committee  Charter.  The Board of  Directors  has  adopted a written
charter for the Audit  Committee.  The Board of  Directors  reviews and approves
changes to the Audit Committee Charter annually.

     Independence of Audit Committee Members.  The Corporation's Audit Committee
is comprised of John T. Beatty, John M. Miller, Harold Force, David W. Laitinen,
M.D., and Harvard W. Nolting,  Jr. Each of these members meets the  requirements
for independence set forth in the Listing Standards of the National  Association
of Securities Dealers, Inc.

     The Corporation's Board of Directors has selected directors to serve on the
Audit Committee based on the Board's determination that they are fully qualified
to supervise the Corporation's  auditors, to monitor the Corporation's  internal
accounting  operations,  and to take steps resulting in financial disclosures of
the Corporation that present the Corporation's  financial  condition and results
of operations.

     The  Corporation's  Board  of  Directors  has  determined  that  its  Audit
Committee does not include an "Audit Committee Financial Expert" as that term is
defined in Item  401(e)(2) of Regulation  S-B  promulgated  under the Securities
Exchange Act of 1934.  In reviewing the criteria in this  definition,  the board
concluded that each member of the Audit  Committee is qualified to serve on that
committee and is independent,  as that term is used in the National  Association
of Securities  Dealers Listing  Standards,  and that Messrs.  Beatty,  Force and
Miller  possess  certain  attributes  required of an Audit  Committee  Financial
Expert. The Board determined,  however,  that because Messrs.  Beatty, Force and
Miller did not have all of the attributes required,  that they do not qualify as
"Audit Committee Financial Experts" under the SEC's definition of that term.

     Notwithstanding the absence of an Audit Committee member who satisfies this
definition,  the Board is satisfied with the experience and independence of each
member  of the Audit  Committee.  As a result,  the  Board  has  concluded  that
attempting to locate and recruit a person who may qualify as an Audit  Committee
Financial Expert under the SEC's  definition,  would not be a prudent use of the
Corporation's resources and, if successful, would only marginally improve, if at
all, the quality of the Audit Committee.

                                       5
<PAGE>

Management Remuneration and Related Transactions


     Joint Report of the Compensation Committee and the Stock Option Committee

     The  Compensation  Committee of the Board of Directors was comprised during
the year ended December 31, 2004, of Messrs. Nolting, Jr. (Chairman), Miller and
Dr.  Laitinen.  The Committee  reviews payroll costs,  establishes  policies and
objectives relating to compensation, and approves the salaries of all employees,
including  executive  officers.  All  decisions  by the  Compensation  Committee
relating to salaries of the Corporation's executive officers are approved by the
full Board of  Directors.  In the year ended  December 31,  2004,  there were no
modifications to Compensation  Committee actions and recommendations made by the
full Board of Directors.  In approving the salaries of executive  officers,  the
Committee has access to and reviews  compensation data for comparable  financial
institutions  in the  Midwest.  Moreover,  from  time to time  the  Compensation
Committee  reviews  information  provided  to  it  by  independent  compensation
consultants in making its decisions.

     The  Corporation's  Stock Option  Committee  administers the  Corporation's
stock option plans. Its members are all of the Corporation's outside directors.

     The objectives of the Compensation Committee and the Stock Option Committee
with respect to executive compensation are the following:

     (1)  provide  compensation  opportunities  comparable  to those  offered by
          other similarly situated financial institutions in order to be able to
          attract  and  retain  talented  executives  who  are  critical  to the
          Corporation's long-term success;

     (2)  reward  executive   officers  based  upon  their  ability  to  achieve
          short-term and long-term strategic goals and objectives and to enhance
          shareholder value; and

     (3)  align the  interests  of the  executive  officers  with the  long-term
          interests of  Shareholders by granting stock options which will become
          more  valuable  to the  executives  as the value of the  Corporation's
          shares increases.

     At present, the Corporation's  executive  compensation program is comprised
of base salary and annual bonuses. Reasonable base salaries are awarded based on
salaries paid by comparable financial institutions, particularly in the Midwest,
and individual performance.

     Base Salary and Bonuses. Base salary levels of the Corporation's  executive
officers are intended to be  comparable  to those  offered by similar  financial
institutions  in the Midwest.  In determining  base salaries,  the  Compensation
Committee also takes into account individual experience and performance. Bonuses
are paid if the Corporation achieves certain financial goals.

     Mr. Keach, Jr. was the Corporation's Chief Executive Officer throughout the
year ended  December 31,  2004.  Mr.  Keach,  Jr.'s  salary was  increased  from
$347,217 for the year ended  December 31, 2003, to $358,467  (including a $3,000
service award) for the year ended December 31, 2004. Mr. Keach,  Jr.  received a
bonus of $40,683 for the year ended December 31, 2003,  compared to no bonus for
the year ended  December 31, 2004.  In  recommending  the salary  increase,  the
Compensation  Committee considered the Corporation's  financial  performance for
the fiscal year ended December 31, 2004.

     Stock  Options.  The  Corporation's  stock  option plans serve as long-term
incentive  plans for  executive  officers and other key  employees.  These plans
align  executive and  Shareholder  long-term  interests by creating a strong and
direct link between executive pay and Shareholder  return, and enable executives
to acquire a significant  ownership position in the Corporation's  Common Stock.
Stock  options are granted at the  prevailing  market price and will only have a
value to the executives if the stock price increases. The Stock Option Committee
determines the number of option grants to be made to executive officers based on

                                       6
<PAGE>

the practices of comparable  financial  institutions  as well as the executive's
level of responsibility and contributions to the Corporation.

     Mr. Keach,  Jr.  received no grant of stock options  during the years ended
December 31, 2003, and December 31, 2004.

     Finally,  the Committee  notes that Section 162(m) of the Internal  Revenue
Code,  in certain  circumstances,  limits to $1  million  the  deductibility  of
compensation,  including  stock-based  compensation,  paid to top  executives by
public companies.  None of the compensation paid to the executive officers named
in the compensation  table below exceeded the threshold for deductibility  under
section 162(m).

     The  Compensation  Committee  and the Stock Option  Committee  believe that
linking  executive  compensation  to corporate  performance  results in a better
alignment  of  compensation  with  corporate  goals  and  the  interests  of the
Corporation's  Shareholders.  As  performance  goals are met or  exceeded,  most
probably  resulting in increased value to Shareholders,  executives are rewarded
commensurately.  The Committee  believes that  compensation  levels for the year
ended  December 31, 2004, for  executives  and for the Chief  Executive  Officer
adequately reflect the Corporation's compensation goals and policies.

         Compensation Committee Members       Stock Option Committee Members
         ------------------------------       ------------------------------
             Harvard W. Nolting, Jr.              John T. Beatty
             David W. Laitinen, MD                John M. Miller
             John M. Miller                       Harold Force
                                                  David W. Laitinen, MD
                                                  Harvard W. Nolting, Jr.


     Remuneration of Named Executive Officers


     During the last three fiscal years, no cash  compensation was paid directly
by the Corporation to any of its executive  officers.  Each of such officers was
compensated by the Bank.

     The  following  table sets forth  information  as to annual,  long-term and
other  compensation  for services in all capacities to the  Corporation  and its
subsidiaries  for the year ended  December  31,  2004,  and the two prior fiscal
years of (i) the  individual  who  served  as  chief  executive  officer  of the
Corporation  during  the year  ended  December  31,  2004,  and (ii) each  other
executive  officer  of the  Corporation  serving  as such  during the year ended
December  31,  2004,  whose  salary and bonuses for the year ended  December 31,
2004, exceeded $100,000 (the "Named Executive Officers").

                                       7
<PAGE>
<TABLE>
<CAPTION>
                                           Summary Compensation Table

                                                                                           Long Term Compensation
                                             Annual Compensation                                     Awards
                             ---------------------------------------------------    --------------------------------------
                                                                        Other                               All
Name and                         Fiscal                                Annual    Restricted Securities     Other
Principal Position                Year                                 Compen-      Stock   Underlying    Compen-
During Last Fiscal Year           Ended      Salary($)(1) Bonus($)(2) sation($)(2)Award($)   Options(#) sation($)(3)
-----------------------     ---------------- ------------ ----------- --------------------- ----------- -----------------
<S>                              <C> <C>       <C>                                                         <C>
John K. Keach, Jr.          Dec. 31, 2004      $358,467       --          --         --             --     $5,898
   Chairman of the Board,   Dec. 31, 2003      $347,217    $40,683        --         --             --     $5,528
   President and            Dec. 31, 2002(4)   $167,738    $37,741        --         --             --     $  794
   Chief Executive Officer
Lawrence E. Welker          Dec. 31, 2004      $174,741       --          --         --             --     $3,641
   Executive Vice President Dec. 31, 2003      $164,000    $12,811        --         --             --     $2,460
   Chief Financial Officer, Dec. 31, 2002(4)   $ 77,250    $ 8,111        --         --             --     $1,041
   Treasurer and Secretary
S. Elaine Pollert           Dec. 31, 2004      $172,241       --          --         --             --     $2,829
   Executive Vice President Dec. 31, 2003      $164,000    $12,811        --         --             --     $2,939
                            Dec. 31, 2002(4)   $ 74,500    $ 7,823        --         --             --     $1,117
Charles R. Farber           Dec. 31, 2004      $189,412         --        --         --             --     $3,899
Executive Vice              Dec. 31, 2003      $181,125    $14,148        --         --             --     $2,943
President                   Dec. 31, 2002(4)   $ 87,500    $ 9,188        --         --             --        --
---------------------------------------------
</TABLE>
(1)  Includes amounts deferred by the Corporation's  executive officers pursuant
     to ss.401(k) of the Internal Revenue Code of 1986, as amended (the "Code"),
     under the 401(k) Plan.

(2)  Each  Named  Executive   Officer  of  the  Corporation   receives   certain
     perquisites,  but the incremental  cost of providing such  perquisites does
     not exceed the lesser of $50,000 or 10% of the officer's  salary and bonus.
     These  perquisites  include  Harrison  Lake Country Club dues of $2,100 for
     2004 for Mr. Keach and Mr.  Farber,  Seymour Elks Country Club dues of $122
     for Mr. Welker, and Indiana CPA fees of $540 for Ms. Pollert.

(3)  Includes the Bank's contributions on behalf of the Named Executive Officers
     to the  401(k)  Plan and,  for 2004,  taxable  premiums  paid for term life
     insurance for the Named Executive Officers.

(4)  Includes compensation only for the six months ended December 31, 2002.

     Stock Options

     The following table includes  information  relating to option exercises for
the Named Executive Officers during fiscal 2004 and the number of shares covered
by both exercisable and unexercisable  stock options held by the Named Executive
Officers  as  of  December   31,  2004.   Also   reported  are  the  values  for
"in-the-money"  options  (options  whose exercise price is lower than the market
value of the shares at fiscal year end) which  represent the spread  between the
exercise price of any such existing stock options and the fiscal year-end market
price of the stock.
<TABLE>
<CAPTION>
                                                    Aggregate Option Exercises and
                                 Outstanding Stock Options and Value Realized as of December 31, 2004

                                                                  Number of
                                                            Securities Underlying                Value of
                                                             Unexercised Options            In-the-Money Options
                          Shares                           at December 31, 2004(#)       at December 31, 2004($)(1)
                         Acquired      Value        ---------------------------------  -------------------------------
Name                   on Exercise   Realized ($)      Exercisable   Unexercisable(2)  Exercisable  Unexercisable (2)
-----------------------------         -----------     ------------ ------------------  -----------------------------
<S>                       <C>         <C>                <C>           <C>               <C>          <C>
John K. Keach, Jr.        16,255      $146,524           111,011       11,534            $584,681     $  5,597
Lawrence E. Welker        11,250      $164,306            96,650           --            $521,960     $    --
S. Elaine Pollert          5,625      $ 91,856            74,752       21,898            $369,582     $152,377
Charles R. Farber             --            --            14,352        5,648            $ 62,001     $ 24,399
-----------------------------------------
</TABLE>
(1)  Amounts reflecting gains on outstanding  in-the-money  options are based on
     the December 31, 2004, closing price for the stock, which was $25.22.

(2)  The  shares  represented  could  not be  acquired  by the  Named  Executive
     Officers as of December 31, 2004.


     No options were  granted to the Named  Executive  Officers  during the year
ended December 31, 2004.

                                       8
<PAGE>

     Employment Agreements

     The Bank has three-year  employment  contracts with the following executive
officers:  Lawrence E. Welker, John K. Keach, Jr., S. Elaine Pollert and Charles
R. Farber  (collectively,  the "Employees").  The Corporation has guaranteed the
Bank's obligations under these contracts. The contracts can be extended annually
for  additional  one-year  terms to maintain a three-year  term unless notice is
properly given by either party to the contract,  and have been so extended.  The
Employees  receive  their current  salary,  which salary is subject to increases
approved by the Board of  Directors.  The contract  also  provides,  among other
things,  for  participation in other fringe benefits and benefit plans available
to Bank  employees.  The Employees may terminate  their  employment upon 30 days
written  notice to the Bank.  The Bank may  discharge  the Employees for "cause"
(generally,  dishonesty,  incompetence,  forms of  misconduct,  or certain legal
violations) at any time or in certain events  specified by banking  regulations.
Upon termination of an Employee's employment by the Bank for other than cause or
in the event of  termination  by an Employee  for "cause"  (generally,  material
changes in duties or  authority or breaches by the Bank of the  contract),  that
Employee will receive his or her base compensation under the contract (a) for an
additional  three  years  if  the  termination   follows  a  change  of  control
(generally,  material  changes  in the  owners  of  shares  of the  Bank  or the
Corporation or in the  composition  of its Board of  Directors),  or (b) for the
remaining term of the contract,  if the termination  does not follow a change of
control.  In  addition,  during  such  period,  the  Employee  will  continue to
participate in the Bank's group insurance plans or receive comparable  benefits.
Moreover,  within a period of three  months after such  termination  following a
change  of  control,  the  Employee  will  have the  right to cause  the Bank to
purchase any stock  options he or she holds for a price equal to the fair market
value (as defined in the  contract) of the shares  subject to such options minus
their option price.  If the payments  provided for in the  employment  agreement
together  with any other  payments made to an Employee by the Bank are deemed to
be  payments in  violation  of the "golden  parachute"  rules of the Code,  such
payments will be reduced to the largest amount which would not cause the Bank to
lose a tax deduction for such payments under those rules. The cash  compensation
which would be paid under these contracts to the four Named  Executive  Officers
if the contracts were terminated as of the date hereof after a change of control
for other  than  cause by the Bank or for cause by the  Employees,  would be the
following:

         Named Executive Officer                   Cash Compensation
         -----------------------                   -----------------
            John K. Keach, Jr.                          $1,074,651
            Lawrence E. Welker                             524,964
            S. Elaine Pollert                              524,964
            Charles R. Farber                              576,522

     The employment  contracts  provide the Bank protection of its  confidential
business  information  should  any  of  them  voluntarily  terminate  his or her
employment without cause or be terminated by the Bank for cause.

     The  existence  of  these  contracts  may  make a  merger,  other  business
combination or change of control of the Bank more difficult or less likely. This
is because,  unless the  Employees are allowed to maintain  their  positions and
authority  with  the  Bank,  they  will be  entitled  to  payments  which in the
aggregate may be deemed to be  substantial.  However,  the employment  contracts
provide security to the Employees,  and the Board of Directors believes that the
contracts  will  encourage  their  objective  evaluation  of  opportunities  for
mergers, other business combinations or other transactions involving a change of
control of the  Corporation  or the Bank  since  they will be in a  position  to
evaluate such  transactions  without  significant  concerns  about the manner in
which such transactions will affect their financial security.

                                       9
<PAGE>

Compensation of Directors

     Monthly Fee. Directors of the Corporation are not currently paid director's
fees. Each director of the Bank receives $500 per regular meeting attended, $225
per committee  meeting attended and a $4,000 quarterly  retainer.  If a director
misses more than three consecutive meetings, he is removed from the Board.

     Deferred Compensation for Outside Directors. The Bank entered into deferred
compensation  agreements with the outside directors other than Mr. Miller. Under
these agreements,  each outside director deferred all or part of his monthly fee
during a period of five years from June,  1992, to May, 1997, and is entitled to
deferred  compensation  after he reaches his normal retirement date (as outlined
below) or upon his death. The annual deferred  compensation  benefits payable or
being paid to the directors participating in this plan are as follows:

                                                        Amount of Annual
                    Name of Individual               Deferred Compensation
                    ------------------               ---------------------
                    David W. Laitinen, MD                   $88,548
                    Harold Force                            $77,412
                    John T. Beatty                          $63,120
                    Harvard W. Nolting, Jr.                 $31,308

     The normal  retirement date for Messrs.  Beatty,  Force and Dr. Laitinen is
the first day of the month  following  the date on which  they reach 60, and for
Mr. Nolting was the first day of the month following the date on which he became
65. The deferred  compensation is payable to Messrs.  Beatty, Force, Nolting and
Dr. Laitinen for a period of 15 years.

     The following table provides  information  relating to option  exercises by
directors of the Company (other than the Named  Executive  Officers whose option
exercises  are  disclosed  on page 8 of this  proxy  statement)  during the last
fiscal year. Value realized upon exercise is the difference  between the closing
price on the Nasdaq Stock Market of the  underlying  stock on the exercise  date
and the exercise or base price of the option.

                                     Shares Acquired
     Name                           on Exercise (#)         Value Realized ($)
------------------------------------------------------------------------------
John T. Beatty                          1,431            $20,377
David W. Laitinen, MD                   1,431            $19,862
Harold F. Force                         1,431            $19,590


     Directors Emeritus Benefits

     In consideration of a director serving as Director  Emeritus,  any Director
Emeritus is paid an amount  equal to 3/4 of the monthly fee paid to directors at
the time of his retirement from the Board.

     Pension Plan

     The  Bank's  employees  are  included  in a pension  plan  administered  by
Pentegra  Group.  Separate  actuarial  valuations  are not made  for  individual
members of the plan.  The Bank's  employees are eligible to  participate  in the
plan once they have completed one year of service for the Bank and have attained
the age of 21 years.

     The plan provides for monthly retirement  benefits  determined on the basis
of the employee's  years of service and the  employee's  average base salary for
the  five  consecutive  years of his or her  employment  producing  the  highest
average. Early retirement, disability, and death benefits are also payable under
the plan, depending upon the participant's age and years of service.  During the
year ended December 31, 2004, the Bank  contributed  $1.2 million to the pension
plan.

                                       10
<PAGE>

     The following table indicates the annual  retirement  benefit that would be
payable under the plan upon  retirement  at age 65 to a participant  electing to
receive his or her retirement benefit in the standard form of benefit,  assuming
various  specified levels of plan  compensation  and various  specified years of
credited service.
<TABLE>
<CAPTION>

 Highest Five-Year                                            Years of Benefit Service
  Average Annual          ------------------------------------------------------------------------------------------
    Compensation               10                 20                   30                 40                 50
--------------------      ------------       ------------         ------------       ------------       ------------
<S>   <C>                    <C>                <C>                 <C>                 <C>                <C>
      $140,000               $26,900            $ 53,800            $ 80,700           $108,200           $136,200
      $180,000               $34,900            $ 69,800            $104,700           $140,200           $176,200
      $220,000               $42,900            $ 85,800            $128,700           $172,200           $216,200
      $260,000               $50,900            $101,800            $152,700           $204,200           $256,200
      $300,000               $58,900            $117,800            $176,700           $236,200           $296,200
      $340,000               $66,900            $133,800            $200,700           $268,200           $336,200
      $380,000               $74,900            $149,800            $224,700           $300,200           $376,200
</TABLE>

     Benefits are currently  subject to maximum Code limitations of $170,000 per
year.  The years of service  credited  under the pension plan as of December 31,
2004, to the Named Executive Officers are as follows:

                  Name of Executive Officer           Years of Service
                  -------------------------           ----------------

                     John K. Keach, Jr.                       30
                     Lawrence E. Welker                       25
                     S. Elaine Pollert                        18
                     Charles R. Farber                         2

     The  compensation  covered by the pension  plan for  purposes of  computing
their  benefits is the  equivalent of the  compensation  set forth in the salary
column in the chart on page 8.

     Excess Benefit Plan

     On April 1, 2001,  the Bank entered into an excess  benefit plan  agreement
with John K. Keach, Jr. Under this agreement,  Mr. Keach is provided  retirement
benefits  equal to the annual  benefits he would have received  under the Bank's
pension  plan had he  received  full  credit  for his  annual  salary and if the
pension plan did not have to make certain  reductions in benefits required under
ss. 415 and ss. 401 of the Internal  Revenue Code of 1986, as amended,  less the
annual benefits he is entitled to under the pension plan. The benefits are to be
paid on an annual basis for the life of Mr. Keach.  The projected annual benefit
payable to Mr.  Keach  under this  agreement  is  approximately  $90,000.  Death
benefits are also provided in the agreement.

     The  benefits  are paid from the general  assets of the Bank.  The Bank has
secured key person life insurance which is expected to provide the Bank with the
funds necessary to provide the benefits described above.

     Supplemental Retirement Income and Deferred Compensation Program

     The Bank has entered  into either  supplemental  retirement  agreements  or
deferred compensation agreements with its executive officers and with nine other
current  or  former  employees  deemed by the  management  of the Bank to be key
employees.  These agreements  provide each of the executive officers of the Bank
with  supplemental   retirement  benefits  after  the  employee  terminates  his
employment for any reason,  unless such termination is for cause;  provided that
in no event will such  retirement  benefits  commence  before the  employee  has
reached age 50.

                                       11
<PAGE>

     The  annual  benefits  for the Named  Executive  Officers  are equal to the
amounts specified below:

                     John K. Keach, Jr.                   $82,664
                     Lawrence E. Welker                   $58,649
                     S. Elaine Pollert                    $44,664
                     Charles R. Farber                    $50,000


     The annual  benefits are payable to those persons for a period of 15 years.
The agreements also provide for death and burial benefits.

     The  benefits  are paid from the general  assets of the Bank.  The Bank has
secured  key person life  insurance  in order to provide the Bank with the funds
necessary  to provide  the  benefits  described  above.  Under the  supplemental
retirement  agreements,  if an executive  officer or employee is terminated  for
cause, all benefits under his or her agreement are forfeited.

     Performance Graph

     The following graph shows the performance of the Corporation's Common Stock
for the period beginning June 30, 2000, and ending December 31, 2004, in
comparison to the NASDAQ Stock Market - U.S. Index and the NASDAQ Bank Index.

             COMPARISON OF FIVE FISCAL YEAR CUMULATIVE TOTAL RETURN*
        AMONG HOME FEDERAL BANCORP, THE NASDAQ STOCK MARKET (U.S.) INDEX
                            AND THE NASDAQ BANK INDEX
<TABLE>
<CAPTION>

                                  Period Ending
----------------------------------------------------------------------------------------------
Index                       06/30/00   06/30/01    06/30/02   12/31/02    12/31/03   12/31/04
----------------------------------------------------------------------------------------------
<S>                           <C>        <C>         <C>        <C>         <C>        <C>
Home Federal Bancorp          100.00     134.20      148.75     157.53      188.76     173.94
NASDAQ Composite              100.00      54.63       37.11      33.95       51.14      55.82
NASDAQ Bank Index*            100.00     138.86      155.80     144.10      185.37     212.15
</TABLE>

*    Source:  CRSP,  Center for Research in Security Prices,  Graduate School of
     Business, The University of Chicago 2005. Used with permission.  All rights
     reserved. crsp.com.

*    $100 INVESTED ON 6/30/2000 IN STOCK OR INDEX -
     INCLUDING REINVESTMENT OF DIVIDENDS.

     Transactions With Certain Related Persons

     The Bank has followed the policy of offering to its directors, officers and
employees and their associates,  real estate mortgage loans for the financing of
their principal  residences;  consumer loans; and, in


                                       12
<PAGE>

certain cases,  commercial loans. These loans are made in the ordinary course of
business on  substantially  the same terms and collateral as those of comparable
transactions prevailing at the time and do not involve more than the normal risk
of collectibility or present other unfavorable features.

            SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

     Section 16(a) of the Securities  Exchange Act of 1934 ("1934 Act") requires
that the Corporation's  officers and directors and persons who own more than 10%
of the  Corporation's  Common  Stock file  reports of  ownership  and changes in
ownership  with the Securities and Exchange  Commission  (the "SEC").  Officers,
directors and greater than 10%  Shareholders  are required by SEC regulations to
furnish the Corporation with copies of all Section 16(a) forms that they file.

     Based  solely on its  review of the copies of such  forms  received  by it,
and/or written  representations  from certain  reporting persons that no Forms 5
were required for those persons,  the Corporation  believes that during the year
ended  December 31, 2004,  all filing  requirements  applicable to its officers,
directors and greater than 10%  beneficial  owners with respect to Section 16(a)
of the 1934 Act were complied with.

                                   ACCOUNTANTS

     The firm of Deloitte & Touche LLP has been  selected  as the  Corporation's
principal  independent  registered public accounting firm for the current fiscal
year.  Deloitte & Touche LLP has served as auditors  for the  Corporation  since
1984.  It is expected  that  representatives  of the firm will be present at the
Annual  Meeting  to make  any  statements  they  desire  to make  and to  answer
questions directed to them.

Accountant's Fees

     Audit Fees.  The firm of Deloitte & Touche LLP served as the  Corporation's
independent  registered  public  accounting  firm  for the  fiscal  years  ended
December 31, 2003,  and December 31, 2004. The aggregate fees billed by Deloitte
& Touche LLP for the audit of the Corporation's financial statements included in
its annual report on Form 10-K; for the attestation of  management's  assessment
of internal control, as required by the Sarbanes-Oxley Act of 2002, Section 404;
and for the review of its financial statements included in its quarterly reports
on Form 10-Q for the fiscal  years ended  December  31,  2003,  and December 31,
2004, were $143,332 and $322,294, respectively.

     Audit-Related  Fees.  The aggregate fees billed in each of the fiscal years
ended  December 31, 2003,  and December  31,  2004,  for  assurance  and related
services  by Deloitte & Touche LLP that are  reasonably  related to the audit or
review of the  Corporation's  financial  statements and that were not covered in
the Audit Fees disclosed above were $14,436 and $17,833, respectively.

     Tax Fees.  The  aggregate  fees  billed in each of the fiscal  years  ended
December 31, 2003, and December 31, 2004, for professional  services rendered by
Deloitte  & Touche  LLP for tax  compliance,  tax  advice or tax  planning  were
$36,997 and $27,988, respectively.

     All Other Fees.  There were no fees billed in fiscal 2003 for  professional
services  rendered by Deloitte & Touche LLP except as disclosed above. In fiscal
2004,  Deloitte  &  Touche  LLP  billed  the  Corporation  $219,040  for  client
assistance for the implementation of the Sarbanes-Oxley Act of 2002.

     Audit Committee  Pre-Approval.  The Corporation's  Audit Committee formally
adopted resolutions pre-approving the engagement of Deloitte & Touche LLP to act
as the Corporation's independent auditor for the fiscal years ended December 31,
2003,  and December 31, 2004. The Audit  Committee has not adopted  pre-approval
policies and procedures in accordance with paragraph (c) (7) (i) of Rule 2-01 of
Regulation  S-X,  because it  anticipates  that in the future the  engagement of
Deloitte & Touche LLP will be made by the Audit  Committee and all non-audit and
audit services to be rendered by Deloitte & Touche LLP will be  pre-approved  by
the  Audit   Committee.   Ninety-eight   percent  and  one  hundred  percent  of
Audit-Related  and Tax Services for the fiscal years ended December 31, 2003 and
2004, respectively,  were pre-approved by the


                                       13
<PAGE>

Audit  Committee.  The  Corporation's  independent  auditors  performed all work
described above with their respective full-time, permanent employees.

                             SHAREHOLDER PROPOSALS

     Any  proposal  which a  Shareholder  wishes to have  presented  at the next
Annual Meeting to be held in April 2006, and included in the Proxy Statement and
form of proxy  relating to that meeting must be received by the  Corporation  at
its principal  executive  offices no later than 120 days in advance of March 25,
2006. Any such proposals should be sent to the attention of the Secretary of the
Corporation, 222 West Second Street, P.O. Box 648, Seymour, Indiana 47274-0648.

     A  Shareholder  proposal  being  submitted for  presentation  at the Annual
Meeting but not for inclusion in the  Corporation's  proxy statement and form of
proxy will normally be considered  untimely if it is received by the Corporation
later than 60 days in advance of March 25, 2006. If, however,  less than 70 days
notice or prior  public  disclosure  of the date of the next  annual  meeting is
given or made to Shareholders  (which notice or public disclosure of the date of
the meeting shall include the date of the Annual  Meeting  specified in publicly
available  By-Laws,  if the Annual Meeting is held on such date),  such proposal
shall be considered untimely if it is received by the Corporation later than the
close of business on the 10th day  following the day on which such notice of the
date of the  meeting  was  mailed or such  public  disclosure  was made.  If the
Corporation  receives  notice of such proposal after such time,  each proxy that
the Corporation receives will confer upon it discretionary  authority to vote on
the proposal in the manner the proxies deem appropriate, even though there is no
discussion  of the proposal in the  Corporation's  proxy  statement for the next
Annual Meeting.

                                    GENERAL

     The Board of Directors knows of no matters which are to be presented at the
Annual  Meeting  other than those  stated in the  Notice of Annual  Meeting  and
referred to in this Proxy  Statement.  If any other matters should properly come
before the meeting,  it is intended that the proxies will be voted, with respect
to them, in accordance with the recommendations of the Board of Directors.

     The cost of soliciting  proxies in the  accompanying  form will be borne by
the Corporation.  In addition to solicitations by mail, some of the officers and
regular employees of the Corporation,  who will receive no special  compensation
therefor,  may solicit proxies by telephone,  telegraph or personal visits,  and
the  cost  of  such  additional  solicitation,  if any,  will  be  borne  by the
Corporation.

     Each  Shareholder is urged to complete,  date and sign the proxy and return
it promptly in the enclosed return envelope.

     Insofar  as any  of the  information  in  this  Proxy  Statement  may  rest
peculiarly  within the  knowledge  of persons  other than the  Corporation,  the
Corporation  relies upon  information  furnished  by others for the accuracy and
completeness thereof.

                                        By Order of the Board of Directors

                                        /s/ John K. Keach, Jr.

                                        John K. Keach, Jr.
                                        Chairman of the Board, President and
                                        Chief Executive Officer

March 25, 2005


                                       14
<PAGE>
PROXY                                                                      PROXY

                              HOME FEDERAL BANCORP

                         Annual Meeting of Shareholders
                                 April 26, 2005
          THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

     The undersigned  hereby appoints  Charles R. Farber and Lawrence E. Welker,
with full  powers of  substitution,  to act as  attorneys  and  proxies  for the
undersigned  to vote all shares of capital  stock of Home Federal  Bancorp which
the  undersigned is entitled to vote at the Annual Meeting of Shareholders to be
held at the Hampton Inn, Seymour,  Indiana, on Tuesday,  April 26, 2005, at 3:00
P.M. Eastern Standard Time, and at any and all adjournments thereof, as follows:

     THIS PROXY WILL BE VOTED AS DIRECTED, BUT IF NO INSTRUCTIONS ARE SPECIFIED,
THIS  PROXY  WILL BE VOTED  FOR EACH OF THE  PROPOSITIONS  STATED.  IF ANY OTHER
BUSINESS IS PRESENTED AT SUCH  MEETING,  THIS PROXY WILL BE VOTED BY THOSE NAMED
IN THIS  PROXY IN  THEIR  BEST  JUDGMENT.  AT THE  PRESENT  TIME,  THE  BOARD OF
DIRECTORS KNOWS OF NO OTHER BUSINESS TO BE PRESENTED AT THE MEETING.

                PLEASE COMPLETE, DATE, SIGN AND MAIL THIS PROXY
                     IN THE ENCLOSED POSTAGE-PAID ENVELOPE.

                 (Continued and to be signed on reverse side.)
<PAGE>
                              HOME FEDERAL BANCORP
   PLEASE MARK VOTE IN OVAL IN THE FOLLOWING MANNER USING DARK INK ONLY. [=]


1. The election as directors of all nominees listed below for three-year terms:

Nominees: John K. Keach, Jr.           For   Withhold   For All
          David W. Laitinen, MD        All     All      (Except Nominee(s)
                                                        written below)
                                       [ ]     [ ]      [ ]


                    ____________________________________________________________

                    In their  discretion,  the proxies are authorized to vote on
                    any other business that may properly come before the Meeting
                    or any adjournment thereof.

                    The Board of  Directors  recommends a vote "FOR" each of the
                    listed propositions.

                    This  proxy may be  revoked  at any time prior to the voting
                    thereof.

                    The  undersigned  acknowledges  receipt  from Home  Federal,
                    prior to the  execution  of this  proxy,  of a notice of the
                    Meeting,   a  proxy   statement  and  an  Annual  Report  to
                    shareholders.

                                          Dated: _________________________, 2005

                    Signature(s) _______________________________________________

                    ____________________________________________________________

                    Please  sign as your name  appears on the  envelope in which
                    this card was mailed.  When signing as  attorney,  executor,
                    administrator,  trustee or  guardian,  please give your full
                    title. If shares are held jointly, each holder should sign.

-  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -
                              FOLD AND DETACH HERE

                            YOUR VOTE IS IMPORTANT.

                PLEASE COMPLETE, DATE, SIGN AND MAIL THIS PROXY
                     IN THE ENCLOSED POSTAGE-PAID ENVELOPE.




</TEXT>
</DOCUMENT>