NEWS RELEASE
For Immediate Release November 28, 2000
Contacts: John K. Keach, Jr. Lawrence E. Welker
Chairman of the Board Executive Vice President
President/CEO Chief Financial Officer
(812) 373-7816 (812) 523-7308
HOME FEDERAL BANCORP ANNOUNCES DIVIDEND AND
STOCK REPURCHASE PROGRAM
(Seymour, IN) -- Home Federal Bancorp ("Home Federal") (NASDAQ: HOMF), the
holding company of Home Federal Savings Bank of Seymour, Indiana (the "Bank"),
today announced a second quarter dividend of $0.1375 (13.75 cents) per share.
The dividend will be paid on January 2, 2001, to all shareholders of record on
December 20, 2000.
The Board of Directors also approved the fourth repurchase, from time to time,
on the open market of up to 5% of the Corporation's outstanding shares of common
stock, without par value ("Common Stock"), or 225,209 such shares. Such
purchases will be made subject to market conditions in open market or block
transactions. Repurchases may begin December 4, 2000.
According to John K. Keach, Jr., Chairman of the Board of the Company, the Board
believes that the Corporation's shares are currently undervalued by the market
and that open market purchases will have the potential effect of enhancing the
book value per share and the potential to enhance growth in earnings per share
of the Corporation's remaining outstanding shares.
As reported earlier, Home Federal posted first quarter earnings of $2.43
million, or $0.52 basic earnings per common share and $0.51 dilutive earnings
per common share, compared to $0.48 basic earnings per common share and $0.46
dilutive earnings per common share for the same period a year ago.
Home Federal Bancorp is a unitary holding company, with Home Federal Savings
Bank as its sole subsidiary. Home Federal Savings Bank, a FDIC insured savings
bank founded in 1908, offers a wide range of consumer and commercial financial
services through 17 offices in southeastern Indiana.
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