Date of Report: August 21, 2006

500 12^th Avenue South
Nampa, Idaho 83651
(Address of principal executive offices and zip code)

(208) 466-4634
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.

[ ]    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
       CFR 240.14d-2(b))

[ ]    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
       CFR 240.13e-4(c))

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On August 21, 2006, Home Federal Bancorp, Inc. (the "Company") entered into a transition agreement with Daniel L. Stevens, the Company's Chairman, President and Chief Executive Officer. Mr. Stevens has announced he intends to retire from active employment with the Company, Home Federal MHC and Home Federal Bank (the "Bank") on September 30, 2008. The material terms of this agreement are summarized in Item 5.02(c) to this Form 8-K and a copy of the agreement is attached hereto as Exhibit 10.13 and incorporated herein by reference.

On August 22, 2006, the Company entered into an agreement with Len E. Williams, who has been appointed President of the Company's subsidiary, Home Federal Bank. The material terms of this agreement are summarized in Item 5.02(c) to this Form 8-K and a copy of the agreement is attached hereto as Exhibit 10.14 and incorporated herein by reference.

(b)     Departure of Principal Officer

On August 21, 2006, the Company entered into a transition agreement with Daniel L. Stevens, the Company's Chairman, President and Chief Executive Officer. Mr. Stevens has announced he intends to retire from active employment with the Company, Home Federal MHC and the Bank on September 30, 2008.

The transition agreement identifies Mr. Stevens' transition schedule beginning September 2006 with an eventual retirement date of September 30, 2008. The agreement also defines Mr. Stevens' responsibilities and compensation during the transition period.

A copy of the Transition Agreement with Mr. Stevens is filed as Exhibit 10.13 to this Form 8-K.

(c)     Appointment of Principal Officer

On August 22, 2006, the Company announced the appointment of Len E. Williams as President of the Company's subsidiary, Home Federal Bank. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Mr. Williams, age 47, previously served as Senior Vice President and Head of Business Banking with Fifth Third Bank and has more than 28 years of banking experience. From 1987 to 2005, he held several management positions with Key Bank, including President of Business Banking from 2003 to 2005. Mr. Williams holds an M.B.A. from the University of Washington and is a graduate of the Pacific Coast Banking School.

On August 22, 2006, the Company entered into an agreement with Mr. Williams that sets forth certain understandings and arrangements with respect to the employment relationship of Mr. Williams with the Bank. The agreement provides that the Bank and Mr. Williams will enter into a one-year employment agreement upon the commencement of his employment. Following the successful completion of the year of service, the Bank will provide a two-year employment agreement including a change of control agreement. Mr. Williams' initial base salary will be

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$200,000. The Bank shall pay a one-time signing bonus of $100,000, which shall be paid upon the start of employment. Mr. Williams will be eligible to participate in the Bank's year-end cash incentive plan, beginning October 1, 2006. The plan provides for a percentage of base pay to be earned based upon the Bank's adjusted net income before taxes.

The agreement provides that Mr. Williams is to be granted approximately 15,000 shares of the Company's restricted stock. Restricted stock awards vest over a five-year period with the first vesting date approximately one year from the date of employment. Mr. Williams will also be granted approximately 75,333 non-qualified options to purchase the Company's common stock. The stock options vest over a five-year period with the first vesting date approximately one year from the date of employment and expire 10 years from the date of grant.

Mr. Williams is also entitled to participate in the Bank's executive non-qualified deferred compensation plan and the executive automobile plan. Mr. Williams is also entitled to participate in all of the Company's benefit plans that are generally available to all employees, including vacation, 401(k) profit sharing, Employee Stock Ownership Plan, medical and health, life, accident and disability.

In the event of involuntary termination without cause during the first year of employment, Mr. Williams will be paid severance equal to one year's annual base salary.

There are no arrangements or understandings between Mr. Williams and any other persons pursuant to which he was selected as an officer. Mr. Williams is not a party to any transaction with the Company and the Bank that would require disclosure under Item 404(a) of Securities and Exchange Commission Regulation S-K.

A copy of the employment agreement with Mr. Williams will be filed as an exhibit to Form 8-K upon execution of the agreement. The employment agreement is expected to be finalized within the next 90 days.

            (c)          Exhibits
            10.13     Transition Agreement with Daniel L. Stevens
            10.14     Agreement with Len E. Williams
            99.1       Press release of Home Federal Bancorp, Inc. dated August 22, 2006

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

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