UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2004
Or
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 000-50901
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Home Federal Savings and Loan Association of Nampa
401(k) Savings Plan
B: Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Home Federal Bancorp, Inc.
500 12th Avenue South
Nampa, Idaho 83651
Financial Statements and Exhibits
---------------------------------
(a) Financial Statements
The Home Federal Savings and Loan Association of Nampa 401(k) Savings
Plan became effective as of October 1, 2004. Filed as a part of this
report on Form 11-K are the audited financial statements of the Plan as
of and for the years ended, December 31, 2004 and 2003.
(b) Exhibit 23
Consent of Independent Registered Public Accounting Firm
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this report to be signed on its behalf by the undersigned, hereunto
duly authorized.
HOME FEDERAL SAVINGS AND LOAN
ASSOCIATION OF NAMPA 401(k) SAVINGS PLAN
Date: June 27, 2005 By: /s/ Daniel L. Stevens
--------------------------------
Daniel L. Stevens
Administrator
3
HOME FEDERAL SAVINGS AND LOAN
ASSOCIATION OF NAMPA
401(K) SAVINGS PLAN
INDEPENDENT AUDITOR'S REPORT
AND
FINANCIAL STATEMENTS
DECEMBER 31, 2004 AND 2003
TABLE OF CONTENTS
==============================================================================
REPORT OF INDEPENDENT REGISTERED PUBLIC COMPANY ACCOUNTING FIRM 1
FINANCIAL STATEMENTS
Statement of net assets available for benefits 2
Statement of changes in net assets available for benefits 3
Notes to financial statements 4-9
SUPPLEMENTAL INFORMATION
Schedule H, Line 4a - Schedule of delinquent participant
contributions 10
Schedule H, Line 4i - Schedule of assets (held at end of year) 11
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Trustees
Home Federal Savings and Loan Association
of Nampa 401(K) Savings Plan
Boise, Idaho
We have audited the accompanying statements of net assets available for Plan
benefits of Home Federal Savings and Loan Association of Nampa 401(K) Savings
Plan as of December 31, 2004 and 2003, and the related statements of changes
in net assets available for Plan benefits for the years ended December 31,
2004 and 2003. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for Plan benefits of the Home
Federal Savings and Loan Association of Nampa 401(K) Savings Plan as of
December 31, 2004 and 2003, and the changes in net assets available for Plan
benefits for the years ended December 31, 2004 and 2003, in conformity with
accounting principles generally accepted in the United States of America. Our
audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets
held for investment purposes at year end is presented for purposes of
additional analysis, and is not a required part of the basic financial
statements but is supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedule has been
subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated, in all material
respects, in relation to the basic financial statements taken as a whole.
/s/Moss Adams LLP
Spokane, Washington
June 2, 2005
1
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NAMPA
401(K) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
------------------------------------------------------------------------------
December 31,
--------------------------------
2004 2003
--------------------------------
INVESTMENTS
Pooled separate accounts $2,231,516 $2,707,473
Common stock 1,663,766 -
---------- ----------
Total investments 3,895,282 2,707,473
---------- ----------
Contributions receivable 21,516 7,506
---------- ----------
Participation loans 26,796 23,577
---------- ----------
Cash 20,442 -
---------- ----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS $3,964,036 $2,738,556
========== ==========
2
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NAMPA
401(K) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN
BENEFITS
------------------------------------------------------------------------------
Year Ended December 31,
------------------------
2004 2003
------------------------
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Interest and dividends $ 4,807 $ 7,431
Net appreciation of fair value of
investments 544,552 432,617
---------- ----------
549,359 440,048
---------- ----------
Contributions:
Participants 381,099 362,797
Employer matching 154,009 135,950
Rollovers 314,809 6,589
---------- ----------
849,917 505,336
---------- ----------
Total additions 1,399,276 945,384
---------- ----------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Benefits paid to participants 173,109 140,518
Administrative expenses 687 1,015
---------- ----------
Total deductions 173,796 141,533
---------- ----------
NET INCREASE 1,225,480 803,851
NET ASSETS AVAILABLE FOR PLAN BENEFITS
Beginning of year 2,738,556 1,934,705
---------- ----------
End of year $3,964,036 $2,738,556
========== ==========
3
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NAMPA
401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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Note 1 - Summary of Accounting Policies
Basis of accounting:
The accompanying financial statements have been prepared under the accrual
method of accounting.
Valuation of investments:
Investments are stated at fair value. Quoted market prices are used to value
shares of common stock. Units of pooled separate accounts are valued at
accumulation unit values (consisting of the account's performance at year end
plus applicable dividend income less administrative expenses). Participant
loans are valued at their outstanding balances, which approximate fair value.
Net appreciation or depreciation in the fair value of investments presented in
the statement of changes in net assets available for Plan benefits consists of
both realized and unrealized gains and losses on those investments.
Payment of benefits:
Benefits are recorded when paid.
Income tax status:
The Plan obtained its latest determination letter on November 27, 2001, in
which the Internal Revenue Service stated that the Plan, as then designed, was
in compliance with the applicable requirements of the Internal Revenue Code.
The Plan has been amended since receiving the determination letter. However,
the Plan administrator and the Plan's tax counsel believe that the Plan is
currently designed and operating in compliance with the applicable
requirements of the Internal Revenue Code. Therefore, no provision for income
taxes has been included in the Plan's financial statements.
Use of estimates:
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of additions
to and deductions from net assets available for Plan benefits during the
reporting period. Actual results could differ from those estimates.
Note 2 - Plan Description
General:
The following description of the 401(k) Retirement Plan (the Plan) is provided
for general information purposes only. Participants should refer to the Plan
agreement for more complete information.
4
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NAMPA
401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
------------------------------------------------------------------------------
General (continued):
The Plan is a defined contribution plan qualifying as a salary reduction plan
as defined in Section 401(k) of the Internal Revenue Code. The Plan covers
substantially all employees of the Bancorp. The Plan is subject to federal
laws, such as the Employee Retirement Income Security Act (ERISA), the
Internal Revenue Code, and other applicable federal and state laws. The
provisions of the Plan are subject to revisions due to changes in laws or due
to pronouncements by the Internal Revenue Service (IRS) or Department of Labor
(DOL).
Amendments:
Beginning in 2004, an eligible participant will automatically defer 3% of
included compensation for each payroll period, unless the eligible participant
makes a contrary salary reduction agreement election on or after plan entry
date. This automatic deferral election only applies to those employees who
become eligible participants on or after July 1, 2004.
Eligibility:
Eligible employees may participate in the Plan once the service requirements
described below are met.
The service requirement for matching contributions is one year of service. A
year of service will have been completed if, at the end of twelve consecutive
months of employment, at least 1000 hours of service have been performed. If
1000 hours of service have not been completed by the end of twelve consecutive
months of employment, a year of service will have been completed at the end of
any following plan year during which 1000 hours of service are performed.
For purpose of salary deferrals, there is no service requirement for
eligibility to participate. Thus, for all employees other than excluded
employees, participation with respect to those contributions can begin upon
hire.
Contributions:
Participants in this Plan may elect to reduce their compensation by a specific
percentage or dollar amount and have that amount contributed to the Plan on a
pre-tax basis as a salary deferral, subject to IRS limitations. Participants
may also elect to contribute amounts representing distributions from other
qualified defined benefit or defined contribution plans. The Plan currently
offers a variety of pooled separate accounts and Home Federal Bancorp common
stock.
Matching or discretionary contributions are made at the discretion of the
Bancorp's Board of Directors. Matching contributions equal to a discretionary
percentage of salary deferrals will be determined each year. The
Administrator will determine the amount of the matching contribution made to
the Plan on the participant's behalf. The Bancorp elected to make matching
contributions of $146,737 and $135,950 during the years ended December 31,
2004 and 2003, respectively.
5
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NAMPA
401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
------------------------------------------------------------------------------
Note 2 - Plan Description (Continued)
Vesting:
Participants are immediately vested in their voluntary contributions, any
rollover contributions, as well as any income or loss thereon.
The vested percentage in a participant's account attributable to the matching
contributions is determined under the following schedule and is based on
vesting years of service. A participant will always be 100% vested if
employed on or after normal retirement age, death, or disability.
Vesting Schedule
Profit Sharing Contributions
Years of Service Percentage
-------------------------- ----------------
Less than 2 years 0%
2 20%
3 40%
4 60%
5 80%
6 100%
Participant's accounts:
Each participant's account is credited with the participant's contribution and
the allocation of the Bancorp's contributions and net plan earnings, and
charged with a $5.00 annual fee for Morningstar investment services. Earnings
allocations are based on participant investment balances. The benefit, to
which a participant is entitled, is the benefit that can be provided from the
participant's vested balance.
Forfeitures:
If a participant is not vested or is partially vested in their account balance
when they leave, the non-vested portion of their account balance will be
forfeited on the earlier of:
a) the distribution of their entire vested account balance, or
b) five consecutive one-year breaks in service
Forfeitures of matching contributions are reallocated as discretionary
matching contributions. If a participant is employed on or after their normal
retirement age, death, or disability, they will be 100% vested.
Forfeited balances of terminated participants' accounts are considered a
reduction of discretionary employer contributions. Forfeitures available for
the reduction of discretionary employer contributions were $6,950 and $1,071
for the years ended December 31, 2004 and 2003, respectively.
6
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NAMPA
401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
------------------------------------------------------------------------------
Note 2 - Plan Description (Continued)
Payment of benefits:
On termination of employment due to retirement, death, or disability, a
participant or his/her heirs may elect to receive an amount equal to the value
of the participant's vested interest in his or her account in lump-sum
amounts, installments, or annuity payments. For termination of service due to
other reasons, a participant may receive the value of the vested interest in
his or her account as a lump-sum distribution. At December 31, 2004, there
were $124,741 of distributions requested but not yet remitted. There were no
distributions requested but not yet remitted to the participants at December
31, 2003.
Plan termination:
Although it has not expressed any intent to do so, the Bancorp has the right
under the Plan to discontinue its contributions at any time and to terminate
the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants would become 100% vested in their accounts and any
unallocated forfeitures would be remitted to the Bancorp.
Administrative expenses:
Certain administrative expenses of the Plan are paid directly by the Bancorp.
Note 3 - Investments
The following tables present the fair values of investments at December 31,
2004 and 2003. Investments that represent 5% or more of the Plan's net assets
are separately identified.
2004
----------
Pooled Separate Accounts:
ING VP Money Market $ 274,560
American Balanced 542,134
Fidelity VIP II Contrafund 205,498
Other pooled separate accounts 1,209,324
-----------
Total pooled separate accounts 2,231,516
-----------
Common Stock:
Home Federal Bancorp 1,663,766
-----------
Total $ 3,895,282
===========
7
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NAMPA
401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
------------------------------------------------------------------------------
Note 3 - Investments (Continued)
2003
----------
Pooled Separate Accounts:
ING VP Money Market $ 162,328
ING BP Strategic Alloc Bal 558,072
ING VP Index Plus Large Cap 199,567
Pioneer Fund 158,292
Fidelity VIP II Contrafund 268,961
Fidelity Advisor Mid Cap 268,110
ING VP Index Plus Small-Cap 184,408
Other pooled separate accounts 907,735
----------
Total $2,707,473
==========
During 2004 and 2003, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year) appreciated in
value as follows:
2004 2003
--------- ---------
Pooled separate accounts $ 206,395 $ 432,617
Common stock 338,157 -
--------- ---------
NET APPRECIATION OF FAIR VALUE OF
INVESTMENTS $ 544,552 $ 432,617
========= =========
Note 4 - Parties in Interest
Certain Plan investments are shares in the Bancorp common stock. These
transactions represent investments in the Bancorp and, therefore, qualify as
parties in interest.
Certain Plan investments are shares of pooled separate accounts managed by
ING. ING is the Trustee as defined by the Plan and, therefore, these
transactions qualify as party in interest transactions.
Note 5 - Reconciliation of the Financial Statements to Form 5500
Net assets available for benefits per the Form 5500 at December 31, 2004 and
2003, reconciles to the financial statements.
8
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NAMPA
401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
------------------------------------------------------------------------------
Note 6 - Subsequent Event
On February 23, 2005, the Board of Trustees approved the name change of the
Home Federal Savings and Loan Association of Nampa 401(K) Savings Plan to Home
Federal Bank 401(k) Savings Plan.
9
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NAMPA
401(K) SAVINGS PLAN
SCHEDULE H, LINE 4a - SCHEDULE OF DELINQUENT PARTICIPANT
CONTRIBUTIONS
------------------------------------------------------------------------------
Plan's Sponsor EIN: 82-0127850
Plan Number: 002
Participant Contributions Total that Constitute Nonexempt
Transferred Late to Plan Prohibited Transactions
--------------------------------------- -------------------------------------
$686 $686
10
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NAMPA
401(K) SAVINGS PLAN
SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
----------------------------------------------------------------------------------------------------------
Plan's Sponsor EIN: 82-0127850
Plan Number: 002
(c)
Description, Including
Maturity Date December 31, 2004
(b) Rate of Interest, Par, --------------------------
Identity of Issue, Borrower, Maturity Value, Number of (d) (e)
(a) Lessor, or Similar Party Shares Cost Current Value
----- --------------------------- -------------------------- --------- --------------
* ING Fixed Pooled separate accounts ** $ 65,002
* ING VP Money Market Pooled separate accounts ** 274,560
* ING Government Pooled separate accounts ** 43,817
* ING VP Bond Pooled separate accounts ** 52,154
Templeton Global Bond Pooled separate accounts ** 46,264
American Balanced Pooled separate accounts ** 542,134
* ING VP Index Plus Large Cap Pooled separate accounts ** 180,572
Oppenheimer Main Street Pooled separate accounts ** 58,706
Pioneer Fund Pooled separate accounts ** 102,305
Washington Mutual Investors Pooled separate accounts ** 29,336
Fidelity VIP II Contrafund Pooled separate accounts ** 205,498
MFS Capital Opportunities Pooled separate accounts ** 56,627
Fidelity Advisor Mid Cap Pooled separate accounts ** 167,509
Franklin Small-Mid Cap Growth Pooled separate accounts ** 55,232
* ING Am Cent Sm Cap Pooled separate accounts ** 8,821
* ING Baron Small Cap Pooled separate accounts ** 29,496
* ING VP Index Plus Mid-Cap Pooled separate accounts ** 4,993
* ING VP Index Plus Small-Cap Pooled separate accounts ** 81,331
Lord Abbett Mid-Cap Pooled separate accounts ** 129,854
* ING Oppenheimer Glob Port Pooled separate accounts ** 56,927
* ING VP Int'l Value Pooled separate accounts ** 40,378
-----------
2,231,516
-----------
Common stock:
* Home Federal Bancorp 132,571 shares, 1,663,766
-----------
* Participant loans 6.75% 26,796
-----------
$ 3,922,078
===========
* - A party in interest, as defined by ERISA.
** - The cost of participant-directed investments is not required to be disclosed.
11
Exhibit 23
Consent of Independent Registered Public Accounting Firm
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (registration statement number 333-121085, filed
December 8, 2004) of Home Federal Savings and Loan Association of Nampa 401(k)
Savings Plan of our report dated June 2, 2005, relating to the financial
statements of Home Federal Savings and Loan Association of Nampa 401(k)
Savings Plan, which appear in Home Federal Savings and Loan Association of
Nampa 401(k) Savings Plan'sAnnual Report (Form 11-K) as of and for the year
ended December 31, 2004.
/s/ Moss Adams LLP
Spokane, Washington
June 27, 2005