□
|
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.
|
|
Sincerely,
|
/s/Len E. Williams | |
Len
E. Williams
|
|
President
and Chief Executive Officer
|
|
Proposal
1.
|
Election
of two directors of Home Federal Bancorp, Inc. for three-year terms;
and
|
|
Proposal
2.
|
Ratification
of the appointment of Crowe Horwath LLP as Home Federal Bancorp, Inc.’s
independent registered public accounting firm for the fiscal year ending
September 30, 2010.
|
BY ORDER OF THE BOARD OF DIRECTORS | |
/s/Eric S. Nadeau | |
Eric S. Nadeau | |
Secretary
|
Date: | Tuesday, January 19, 2010 | |
Time:
|
3:00
p.m., local time
|
|
Place:
|
Silverstone
Corporate Plaza, 3405 East Overland Road, Meridian,
Idaho
|
|
Proposal
1.
|
Election
of two directors of Home Federal for three-year terms;
and
|
|
Proposal
2.
|
Ratification
of the appointment of Crowe Horwath LLP as our independent registered
public accounting firm for the fiscal year ending September 30,
2010.
|
• |
|
Proxy
Statement;
|
• |
Proxy
Card;
|
|
• |
Annual
Report to Stockholders; and
|
|
• |
Directions
to attend the annual meeting, where you may vote in
person.
|
• |
submitting
a new proxy with a later date;
|
|
• |
notifying
the Secretary of Home Federal in writing before the annual meeting that
you have revoked your proxy; or
|
|
• |
voting
in person at the annual
meeting.
|
• |
those
persons or entities (or groups of affiliated person or entities) known by
management to beneficially own more than five percent of Home Federal’s
common stock other than directors and executive
officers;
|
|
• |
each
director and director nominee of Home Federal;
|
|
• |
each
executive officer of Home Federal or Home Federal Bank named in the
Summary Compensation Table appearing under “Executive Compensation” below
(known as “named executive officers”); and
|
|
• |
all
current directors and executive officers of Home Federal and Home Federal
Bank as a group.
|
Name
|
Number
of Shares
Beneficially
Owned (1)
|
Percent
of Common Stock
Outstanding
|
||
Beneficial
Owners of More Than 5%
|
||||
Keeley
Asset Management Corp.
401
South LaSalle Street
Chicago,
Illinois 60605
|
1,615,452
(2)
|
9.67
|
||
Capital
World Investors
333
South Hope Street
Los
Angeles, California 90071
|
1,504,249
(3)
|
9.01
|
||
Home
Federal Bancorp, Inc. Employee Stock Ownership Plan
500
12th
Avenue South
Nampa,
Idaho 83651
|
1,359,962
(4)
|
8.14
|
||
(Table
continues on following page)
|
Name
|
Number
of Shares
Beneficially
Owned (1)
|
Percent
of Common Stock
Outstanding
|
||||||
Wellington
Management Company, LLP
75
State Street
Boston,
Massachusetts 02109
|
1,020,128(5)
|
6.11 | ||||||
Firefly
Management Partners, LP
551
Fifth Ave., 36th
Floor
New
York, NY 10176
|
890,014(6) | 5.33 | ||||||
Columbia
Management Advisors LLC
100
Federal Street
Boston,
MA 02110
|
868,430(7) | 5.20 | ||||||
Castine
Capital Management LLC
One
International Place, Suite 2401
Boston,
MA 02110
|
853,051(8) | 5.11 | ||||||
Dimensional
Fund Advisors, LP
6300
Bee Cave Road
Austin,
TX 78746-5149
|
841,669(9) | 5.04 | ||||||
Directors
|
||||||||
Daniel
L. Stevens
|
189,255(10) | 1.13 | ||||||
N.
Charles Hedemark
|
65,763(11) | * | ||||||
Brad
J. Little
|
10,000 | * | ||||||
Richard
J. Navarro
|
20,040 | * | ||||||
James
R. Stamey
|
45,951(12) | * | ||||||
Robert
A. Tinstman
|
65,263 | * | ||||||
Len
E. Williams (13)
|
187,918 | 1.12 | ||||||
Named
Executive Officers
|
||||||||
Eric
S. Nadeau
|
39,038 | * | ||||||
Steven
D. Emerson
|
63,978 | * | ||||||
Steven
K. Eyre
|
59,936 | * | ||||||
Cindy
L. Bateman
|
18,954 | * | ||||||
Directors
and Executive Officers of Home Federal
and
Home Federal Bank as a group (11 persons)
|
766,096 | 4.59% |
_____________ | |||
*
|
Less
than one percent of shares outstanding.
|
||
(1)
|
The
amounts shown also include the following number of shares which the
indicated individuals have the right to acquire within 60 days of the
voting record date through the exercise of stock options: Mr. Stevens -
37,249; Messrs. Hedemark, Stamey and Tinstman - 20,318; Mr. Navarro -
13,632; Mr. Williams - 53,916; Mr. Nadeau -5,000; Mr. Emerson -18,846; Mr.
Eyre -11,360, Ms. Bateman - 1,084; and all directors and officers as a
group - 202,041.
|
||
(2)
|
Based
solely on a Schedule 13F dated November 12, 2009 regarding shares owned as
of September 30, 2009.
|
||
(3)
|
Based
solely on a Schedule 13F dated November 16, 2009, regarding shares owned
as of September 30, 2009.
|
||
(4)
|
Based
solely on a Schedule 13G/A dated February 13, 2009 regarding shares owned
as of December 31, 2008, the Home Federal Bancorp, Inc. Employee Stock
Ownership Plan had sole voting power with respect to 1,114,881 shares,
shared voting power with respect to 245,081 shares and sole dispositive
power with respect to 1,359,962 shares.
|
||
(5)
|
Based
solely on a Schedule 13F dated November 16, 2009 regarding shares owned as
of September 30, 2009, reporting sole voting power with respect to 815,180
shares and sole dispositive power with respect to 204,948
shares.
|
||
(6)
|
Based
solely on a Schedule 13G filed on November 20, 2009, regarding shares
owned as of September 30, 2009.
|
||
(Footnotes
continue on following page)
|
(7)
|
Based
solely on a Schedule 13F regarding shares owned as of September 30,
2009. According to that filing, shares are held in several
mutual funds, none of which holds more than five percent of this class of
stock.
|
||
(8)
|
Based
solely on a Schedule 13G filed on November 13, 2009 regarding shares owned
as of September 30, 2009.
|
||
(9)
|
Based
solely on a Schedule 13F filed on October 29, 2009, regarding shares owned
as of September 30, 2009, representing sole voting power with respect to
806,916 shares and sole dispositive power with respect to 34,753
shares.
|
||
(10)
|
Includes
28,400 shares held solely by his wife, all of which have been
pledged.
|
||
(11)
|
Includes
28,900 shares held jointly with his wife.
|
||
(12)
|
Includes
11,360 shares held jointly with his wife.
|
||
(13)
|
Mr.
Williams is also a named executive
officer.
|
Name
|
Age
(1)
|
Position(s)
Held with Home Federal
and
Home Federal Bank
|
Director
Since
|
Term
to
Expire
|
||||
Nominees
|
||||||||
James
R. Stamey
|
66
|
Director
|
2001
|
2013
(2)
|
||||
Robert
A. Tinstman
|
63
|
Director
|
1999
|
2013 (2)
|
||||
Directors
Continuing in Office
|
||||||||
N.
Charles Hedemark
|
67
|
Director
|
1983
|
2011
|
||||
Len
E. Williams
|
50
|
Director,
President and Chief Executive Officer
|
2007
|
2011
|
||||
Daniel
L. Stevens
|
66
|
Chairman
|
1996
|
2012
|
||||
Richard
J. Navarro
|
57
|
Director
|
2005
|
2012
|
||||
Brad
J. Little
|
55
|
Director
|
2009
|
2012
|
(1)
|
As
of September 30, 2009.
|
(2)
|
Assuming
re-election.
|
Change
in
|
||||||||||||||||||||||||||||||
Pension
|
||||||||||||||||||||||||||||||
Value
|
||||||||||||||||||||||||||||||
and
Non-
|
||||||||||||||||||||||||||||||
Non-Equity
|
qualified
|
|||||||||||||||||||||||||||||
Fees
|
Incentive
|
Deferred
|
All
|
|||||||||||||||||||||||||||
Earned
|
Plan
|
Compen-
|
Other
|
|||||||||||||||||||||||||||
or
Paid
|
Stock
|
Option
|
Compen-
|
sation
|
Compen-
|
|||||||||||||||||||||||||
in
Cash
|
Awards
|
Awards
|
sation
|
Earnings
|
sation
|
Total
|
||||||||||||||||||||||||
Name
|
($)
|
($)(1)(2)
|
($)(1)(3)
|
($)(4)
|
($)(5)
|
($)(6)
|
($)
|
|||||||||||||||||||||||
Daniel
L. Stevens
|
24,000 | 191,636 | 65,338 | 5,701 | 7,659 | 7,780 | 302,114 | |||||||||||||||||||||||
N.
Charles Hedemark
|
27,550 | 32,634 | 11,128 | 6,267 | 3,748 | 1,522 | 82,849 | |||||||||||||||||||||||
James
R. Stamey
|
27,000 | 32,634 | 11,128 | 25,344 | 10,502 | 1,522 | 108,130 | |||||||||||||||||||||||
Robert
A. Tinstman
|
26,550 | 32,634 | 11,128 | 29,115 | 7,207 | 1,522 | 108,156 | |||||||||||||||||||||||
Richard
J. Navarro
|
27,300 | 7,488 | 13,267 | 5,894 | 5,311 | 555 | 59,815 | |||||||||||||||||||||||
Brad
Little
|
12,000 | 2,348 | 1,827 | -- | 2,450 | 330 | 18,955 |
(1) |
Represents
the dollar amount of expense recognized for financial statement reporting
purposes in fiscal 2009 for awards made in 2009 and prior years and being
earned by the director ratably over the five-year period from the date of
the award. Amounts are calculated pursuant to the provisions of Accounting
Standards Codification Topic (“ASC”) 718, “Compensation -
Stock
|
Compensation.” For
a discussion of valuation assumptions, see Note 11 of the Notes to
Consolidated Financial Statements in Home Federal’s Annual Report on Form
10-K for the year ended September 30, 2009.
|
||
(2) |
For
Directors Hedemark, Stamey and Tinstman, represents awards of 16,546
shares of restricted stock with an aggregate grant date fair value of
$179,605. For Director Little, represents an award of 3,000 shares of
restricted stock with a grant date fair value of $28,170. For Director
Navarro, represents awards of 5,272 shares of restricted stock with an
aggregate grant date fair value of $53,870. For Director Stevens,
represents awards of 87,658 shares of restricted stock with an aggregate
grant date fair value of $974,612. As of September 30, 2009, the directors
had the following number of shares of restricted stock outstanding:
Directors Hedemark, Stamey and Tinstman, 8,418 shares; Director Little,
3,000 shares; Director Navarro, 3,909 shares; and Director Stevens, 36,863
shares.
|
|
(3) |
For
Directors Hedemark, Stamey and Tinstman, represents grants of options to
purchase 32,731 shares of common stock with an aggregate grant date fair
value of $68,428. For Director Little, represents a grant of options to
purchase 7,333 shares of common stock with a grant date fair value of
$21,926. For Director Navarro, represents grants of options to purchase
30,053 shares of common stock with an aggregate grant date fair value of
$79,126. For Director Stevens, represents grants of options to purchase
81,832 shares of common stock with an aggregate grant date fair value of
$256,702. As of September 30, 2009, Directors Hedemark, Stamey and
Tinstman each had 20,318 vested and 12,413 unvested options outstanding,
Director Little had no vested and 7,333 unvested options outstanding,
Director Navarro had 13,632 vested and 16,421 unvested options outstanding
and Director Stevens had 37,249 vested and 44,582 unvested options
outstanding.
|
|
(4) |
Represents
the expense to accrue the estimated present value of future benefits for
the director deferred incentive plan.
|
|
(5) |
Represents
the aggregate change in actuarial present value of each director’s
accumulated benefit under the director retirement
plan.
|
|
(6) |
Represents
dividends received on unvested restricted
stock.
|
• |
to
attract and retain key executives who are highly qualified and are vital
to our long-term success;
|
|
• |
to
provide levels of compensation commensurate with those offered in our
market areas as measured by local, regional, and national financial
industry compensation surveys;
|
|
• |
to
align the interests of executives with stockholders by having a
significant portion of total compensation based on meeting or exceeding
defined performance measures without encouraging management to undertake
excessive risks that could undermine Home Federal’s safety and
soundness;
|
|
• |
to
motivate executives to enhance long-term stockholder value and thereby
helping them build their own personal ownership in Home Federal;
and
|
|
• |
to
integrate the compensation program with our long-term strategic planning
and management process.
|
• |
Base
salaries for executives generally are targeted between the 50th
and 75th
percentiles.
|
|
• |
The
Annual Incentive Plan will provide cash compensation at the 50th
percentile when target performance- based goals are achieved
and between the 50th
and 75th
percentiles if annual goals are
exceeded.
|
• |
An
equity-based Recognition and Retention Plan designed to align management’s
long-term goals with the interest of
stockholders.
|
Performance
Metrics
|
Weight
|
Target
|
Target
Plus
|
|||
Total
revenue
|
25%
|
$35,391,000
|
$37,161,000
|
|||
Income
before income taxes and incentive compensation
|
75
|
7,145,000
|
8,915,000
|
Performance
Metrics
|
||||||||||||||||
Name
|
Target
|
Target
Plus
|
Cash
Award
($)
|
Discretionary
Cash
Amount
($)
|
||||||||||||
Len
E. Williams
|
50% | 100% | -- | 183,750 | ||||||||||||
Eric
S. Nadeau
|
40% | 80% | -- | 96,000 | ||||||||||||
Steven
D. Emerson
|
40% | 80% | -- | 67,500 | ||||||||||||
Steven
K. Eyre
|
40% | 80% | -- | 90,000 | ||||||||||||
Cindy
L. Bateman
|
30% | 60% | -- | 55,665 |
Name
|
Target
|
Target
Plus
|
||||||
Len
E. Williams
|
50% | 100% | ||||||
Eric
S. Nadeau
|
40% | 80% | ||||||
Steven
K. Eyre
|
40% | 80% | ||||||
Steven
D. Emerson
|
30% | 60% | ||||||
Cindy
L. Bateman
|
30% | 60% |
Performance
Metrics
|
Weight
|
|||
Total
revenue
|
25% | |||
Income
before income taxes and incentive compensation
|
50% | |||
Nonperforming
assets as a percent of assets
|
25% |
2008
Peer Group
|
|
PremierWest
Bancorp (PRWT)
Horizon
Financial Corp. (HRZB)
First
Financial Northwest, Inc. (FFNW)
HF
Financial Corp. (HFFC)
Columbia
Bancorp (CBBO)
Intermountain
Community Bancorp (IMCB)
Pacific
Continental Corporation (PCBK)
Washington
Banking Company (WBCO)
Heritage
Financial Corporation (HFWA)
Riverview
Bancorp, Inc. (RVSB)
|
Rainier
Pacific Financial Group, Inc. (RPFG)
Team
Financial, Inc. (TFIN)
Blue
Valley Ban Corp. (BVBC)
BNCCORP,
Inc. (BNCC)
Timberland
Bancorp, Inc. (TSBK)
The
Bank Holdings (TBHS)
Idaho
Independent Bank (IIBK)
Landmark
Bancorp, Inc. (LARK)
Pacific
Financial Corporation (PFLC)
Cowlitz
Bancorporation (CWLZ)
|
|
N.
Charles Hedemark, Chairman
|
Robert
A. Tinstman
|
|
Richard J. Navarro | |
James R. Stamey |
Name
and Principal Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards
($)(1)
|
Option
Awards
($)(1)
|
Change
in Pension Value and Non-qualified Deferred Compen-sation
Earnings
($)(2)
|
All
Other
Compen-
sation
($)(3)
|
Total
($)
|
||||||||||||||||||||||
Len
E. Williams
|
2009
|
245,000 | 183,750 | 105,952 | 92,109 | 66,826 | 68,659 | 762,296 | ||||||||||||||||||||||
President
and Chief Executive
|
2008
|
228,750 | -- | 62,931 | 58,564 | 54,889 | 23,267 | 458,401 | ||||||||||||||||||||||
Officer
of Home Federal and
|
2007
|
204,583 | -- | 45,900 | 54,099 | 50,434 | 34,375 | 389,391 | ||||||||||||||||||||||
Home
Federal Bank
|
||||||||||||||||||||||||||||||
Eric
S. Nadeau (4)
|
2009
|
160,000 | 96,000 | 32,068 | 33,145 | 23,361 | 40,121 | 384,695 | ||||||||||||||||||||||
Executive
Vice President, Treasurer,
|
2008
|
50,974 | -- | 2,735 | 4,175 | -- | 42,006 | 99,890 | ||||||||||||||||||||||
Secretary
and Chief Financial
|
||||||||||||||||||||||||||||||
Officer
of Home Federal and
|
||||||||||||||||||||||||||||||
Home
Federal Bank
|
||||||||||||||||||||||||||||||
Steven
D. Emerson (5)
|
2009
|
150,000 | 67,500 | 49,346 | 39,838 | 23,239 | 54,621 | 384,544 | ||||||||||||||||||||||
Executive
Vice President and Commercial
|
2008
|
144,583 | -- | 27,319 | 23,135 | 20,919 | 29,356 | 245,312 | ||||||||||||||||||||||
Banking
Team Lead - Idaho Region
|
||||||||||||||||||||||||||||||
(Table
continues on following page)
|
Name
and Principal Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards
($)(1)
|
Option
Awards
($)(1)
|
Change
in Pension Value and Non-qualified Deferred Compen-sation
Earnings
($)(2)
|
All
Other
Compen-
sation
($)(3)
|
Total
($)
|
||||||||||||||||||||||
Steven
K. Eyre (6)
|
2009
|
150,000 | 90,000 | 32,588 | 31,095 | 36,156 | 52,856 | 392,695 | ||||||||||||||||||||||
President
- Central Oregon Region
|
2008
|
115,625 | -- | 8,595 | 10,988 | 21,095 | 43,980 | 200,283 | ||||||||||||||||||||||
Cindy
L. Bateman (5)
|
2009
|
123,700 | 55,665 | 15,350 | 8,583 | -- | 28,158 | 231,456 | ||||||||||||||||||||||
Senior
Vice President and
|
2008
|
115,763 | 8,682 | 6,181 | 1,701 | -- | 5,446 | 145,350 | ||||||||||||||||||||||
Chief
Credit Officer
|
____________
|
||||||||||
(1)
|
Represents
the dollar amount of expense recognized for financial statement reporting
purposes in fiscal 2009 for awards made in 2009 and prior years and being
earned by the officer ratably over the vesting period of the award.
Amounts are calculated pursuant to the provisions of ASC 718. For a
discussion of valuation assumptions, see Note 11 of the Notes to
Consolidated Financial Statements in Home Federal’s Annual Report on Form
10-K for the year ended September 30, 2009.
|
|||||||||
(2)
|
Represents
the aggregate change in actuarial present value of each named executive
officer’s accumulated benefit under his or her salary continuation
agreement.
|
|||||||||
(3)
|
Please
see the table below for more information on the other compensation paid to
our named executive officers in the year ended September 30,
2009.
|
|||||||||
(4)
|
Mr.
Nadeau was hired effective as of June 5, 2008.
|
|||||||||
(5)
|
Mr.
Emerson and Ms. Bateman were not named executive officers prior to 2008;
therefore, 2007 is not included.
|
|||||||||
(6)
|
Mr.
Eyre was hired in December 2007.
|
Name
|
401(k)
Matching
Contribu-
tion
($)
|
ESOP
Contribu-
tion
($)(1)
|
Company
Car/Car
Allowance
($)
|
Restricted
Stock
Dividends
($)
|
Club
Dues
($)
|
Welfare
Benefits
($)
|
||||||||||||||||||
Len
E. Williams
|
7,656 | 34,163 | 3,627 | 9,040 | 6,180 | 7,993 | ||||||||||||||||||
Eric
S. Nadeau
|
5,000 | 23,269 | -- | 4,015 | -- | 7,837 | ||||||||||||||||||
Steven
D. Emerson
|
7,500 | 22,273 | 5,609 | 4,340 | 7,234 | 7,665 | ||||||||||||||||||
Steven
K. Eyre
|
4,500 | 22,049 | 8,100 | 3,970 | 7,123 | 7,114 | ||||||||||||||||||
Cindy
L. Bateman
|
5,831 | 19,620 | -- | 1,559 | -- | 1,148 |
_____________
|
|
(1) |
Based
on the closing price of Home Federal’s stock on September 30, 2009
multiplied by the number of shares allocated to the named executive
officers.
|
Estimated
Possible
|
All
|
All
|
||||||||||||||||||||||||||
Payments
Under Non-Equity
|
Other
|
Other
|
||||||||||||||||||||||||||
Name
|
Grant
Date
|
Incentive
Plan Awards (1)
|
Stock
Awards:
Number
of
Shares
of
Stock
or
Units
(#)(2)
|
Awards:
Number
of
Securities
Under-
lying
Options
(#)(2)
|
Exercise
or
Base
Price
of
Option
Awards
($/Sh)
|
Grant
Date
Fair
Value
of
Stock
and
Option
Awards
($)
|
||||||||||||||||||||||
Target
($)
|
Target
Plus
($)
|
|||||||||||||||||||||||||||
Len
E. Williams
|
--
|
122,500 | 245,000 | -- | -- | -- | -- | |||||||||||||||||||||
04/28/09
|
-- | -- | 53,000 | 133,000 | 9.39 | 895,340 | ||||||||||||||||||||||
Eric
S. Nadeau
|
--
|
64,000 | 128,000 | -- | -- | -- | -- | |||||||||||||||||||||
04/28/09
|
-- | -- | 27,000 | 66,000 | 9.39 | 450,870 | ||||||||||||||||||||||
Steven
D. Emerson
|
--
|
60,000 | 120,000 | -- | -- | -- | -- | |||||||||||||||||||||
04/28/09
|
-- | -- | 27,000 | 66,000 | 9.39 | 450,870 | ||||||||||||||||||||||
Steven
K. Eyre
|
--
|
60,000 | 120,000 | -- | -- | -- | -- | |||||||||||||||||||||
04/28/09
|
-- | -- | 27,000 | 66,000 | 9.39 | 450,870 | ||||||||||||||||||||||
Cindy
L. Bateman
|
--
|
37,110 | 74,220 | -- | -- | -- | -- | |||||||||||||||||||||
04/28/09
|
-- | -- | 11,000 | 27,000 | 9.39 | 184,020 |
___________
|
|||||||||||||||||||||||||||||
(1)
|
Represents
the incentives that could have been earned under the annual cash incentive
plan. See “Annual Cash Incentive” for additional discussion on the plan
and related awards.
|
||||||||||||||||||||||||||||
(2)
|
Equity
awards vest ratably over the five-year period from the grant date, with
the first 20% vesting one year after the grant date.
|
Option
Awards (1)(2)
|
Stock
Awards (1)(2)
|
||||||||||||||||||||||
Name
|
Grant
Date
|
Number
of
Securities
Underlying
Unexercised
Options
(#)
Exercisable
|
Number
of
Securities
Underlying
Unexercised
Options
(#)
Unexer-
cisable
|
Option
Exercise
Price
($)(2)
|
Option
Expiration
Date
|
Number
of
Shares
or
Units
of
Stock
That
Have
Not
Vested
(#)
|
Market
Value
of
Shares
or
Units
of
Stock
That
Have
Not
Vested
($)
|
||||||||||||||||
Len
E. Williams
|
09/18/06
|
51,072 | 34,048 | 13.47 |
09/18/16
|
6,816 | 77,839 | ||||||||||||||||
10/19/07
|
1,422 | 5,689 | 12.76 |
10/19/17
|
4,367 | 49,871 | |||||||||||||||||
04/28/09
|
-- | 133,000 | 9.39 |
04/28/19
|
53,000 | 605,260 | |||||||||||||||||
Eric
S. Nadeau
|
06/16/08
|
5,000 | 20,000 | 11.05 |
06/16/18
|
4,000 | 45,680 | ||||||||||||||||
04/28/09
|
-- | 66,000 | 9.39 |
04/28/19
|
27,000 | 308,340 | |||||||||||||||||
|
Option
Awards (1)(2)
|
Stock
Awards (1)(2)
|
||||||||||||||||||||||
Name
|
Grant
Date
|
Number
of
Securities
Underlying
Unexercised
Options
(#)
Exercisable
|
Number
of
Securities
Underlying
Unexercised
Options
(#)
Unexer-
cisable
|
Option
Exercise
Price
($)(2)
|
Option
Expiration
Date
|
Number
of
Shares
or
Units
of
Stock
That
Have
Not
Vested
(#)
|
Market
Value
of
Shares
or
Units
of
Stock
That
Have
Not
Vested
($)
|
||||||||||||||||
Steven
D. Emerson
|
12/18/06
|
11,360 | 17,040 | 15.34 |
12/18/16
|
3,408 | 38,919 | ||||||||||||||||
10/19/07
|
903 | 3,613 | 12.76 |
10/19/17
|
2,536 | 28,961 | |||||||||||||||||
04/28/09
|
-- | 66,000 | 9.39 |
04/28/19
|
27,000 | 308,340 | |||||||||||||||||
Steven
K. Eyre
|
12/03/07
|
5,680 | 22,720 | 10.09 |
12/03/17
|
4,544 | 51,892 | ||||||||||||||||
04/28/09
|
-- | 66,000 | 9.39 |
04/28/19
|
27,000 | 308,340 | |||||||||||||||||
Cindy
L. Bateman
|
10/19/07
|
542 | 2,169 | 12.76 |
10/19/17
|
1,585 | 18,100 | ||||||||||||||||
04/28/09
|
-- | 27,000 | 9.39 |
04/28/19
|
11,000 | 125,620 |
_____________ | ||||||||
(1)
|
All
option awards vest ratably over a five year period with the first 20%
vesting one year after the grant date. Stock awards granted on 10/19/07
vest on 10/19/10. All other stock awards vest ratably over a five year
period with the first 20% vesting one year after the grant
date.
|
|||||||
(2)
|
In
December 2007, Home Federal completed its second-step conversion. As a
result, each outstanding share was exchanged for 1.1360 shares in the new
public company. Accordingly, all outstanding shares of restricted stock
and stock options (and the related exercise prices) were adjusted based on
the exchange ratio.
|
Option
Awards
|
Stock
Awards
|
|||||||||||||||
Name
|
Number
of Shares
Acquired
on Exercise (#)
|
Value
Realized
on
Exercise ($)
|
Number
of Shares
Acquired
on Vesting (#)
|
Value
Realized
on
Vesting ($)
|
||||||||||||
Len
E. Williams
|
-- | -- | 3,408 | 40,896 | ||||||||||||
Eric
S. Nadeau
|
-- | -- | 1,000 | 10,560 | ||||||||||||
Steven
D. Emerson
|
-- | -- | 1,136 | 11,076 | ||||||||||||
Steven
K. Eyre
|
-- | -- | 1,136 | 11,190 | ||||||||||||
Cindy
L. Bateman
|
-- | -- | -- | -- |
Name
|
Plan
Name
|
Number
of
Years
Credited
Service
(#)
|
Present
Value
of
Accumulated
Benefit
($)
|
Payments
During
Last
Fiscal
Year ($)
|
||||||||||
Len
E. Williams
|
Salary
Continuation Agreement
|
3 | 172,149 | -- | ||||||||||
Eric
S. Nadeau
|
Salary
Continuation Agreement
|
1 | 23,361 | -- | ||||||||||
Steven
D. Emerson
|
Salary
Continuation Agreement
|
2 | 60,435 | -- | ||||||||||
Steven
K. Eyre
|
Salary
Continuation Agreement
|
1 | 57,251 | -- | ||||||||||
Cindy
L. Bateman (1)
|
--
|
-- | -- | -- |
(1)
|
Ms.
Bateman does not have a salary continuation
agreement.
|
Compensation
and/or Benefits
Payable
Upon Termination
|
Early
Retirement/
Voluntary
Termination
($)
|
Involuntary
Termination
Without
Cause($)
|
Qualifying
Termination
in
Connection
With
a
Change in
Control
($)
|
Termination
in
the Event
of
Disability
($)
|
Termination
in
the Event
of
Death ($)
|
|||||||||||||||
Len E.
Williams
|
||||||||||||||||||||
Cash
Severance
|
-- | 732,550 | 973,788 | 125,000 | -- | |||||||||||||||
Health
and Welfare Benefits
|
-- | 23,979 | 3,256 | -- | -- | |||||||||||||||
Intrinsic
Value of Unvested Equity (1)
|
-- | -- | -- | 1,002,960 | 1,002,960 | |||||||||||||||
Salary
Continuation Agreement (2)(3)
|
51,654 | 51,654 | 51,654 | 172,149 | 1,845,998 | |||||||||||||||
Total
|
51,654 | 808,183 | 1,028,698 | 1,300,109 | 2,848,958 | |||||||||||||||
Eric S.
Nadeau
|
||||||||||||||||||||
Cash
Severance
|
-- | -- | 320,000 | -- | -- | |||||||||||||||
Health
and Welfare Benefits
|
-- | -- | 15,674 | -- | -- | |||||||||||||||
Intrinsic
Value of Unvested Equity (1)
|
-- | -- | 228,212 | 842,020 | 842,020 | |||||||||||||||
Salary
Continuation Agreement
|
2,336 | 2,336 | 2,336 | 23,361 | 1,930,124 | |||||||||||||||
Total
|
2,336 | 2,336 | 566,222 | 865,381 | 2,772,144 | |||||||||||||||
Steven D.
Emerson
|
||||||||||||||||||||
Cash
Severance
|
-- | -- | 300,000 | -- | -- | |||||||||||||||
Health
and Welfare Benefits
|
-- | -- | 15,310 | -- | -- | |||||||||||||||
Intrinsic
Value of Unvested Equity (1)
|
-- | -- | 109,536 | 886,421 | 886,421 | |||||||||||||||
Salary
Continuation Agreement (2)(3)
|
18,131 | 18,131 | 18,131 | 60,435 | 1,809,491 | |||||||||||||||
Total
|
18,131 | 18,131 | 442,976 | 946,856 | 2,695,912 | |||||||||||||||
Steven K.
Eyre
|
||||||||||||||||||||
Cash
Severance
|
-- | -- | 300,000 | -- | -- | |||||||||||||||
Health
and Welfare Benefits
|
-- | -- | 14,228 | -- | -- | |||||||||||||||
Intrinsic
Value of Unvested Equity (1)
|
-- | -- | 127,505 | 854,445 | 854,445 | |||||||||||||||
Salary
Continuation Agreement (2)(3)
|
11,450 | 11,450 | 11,450 | 57,251 | 1,271,325 | |||||||||||||||
Total
|
11,450 | 11,450 | 453,183 | 911,696 | 2,125,770 | |||||||||||||||
Cindy L.
Bateman
|
||||||||||||||||||||
Cash
Severance
|
-- | -- | 123,700 | -- | -- | |||||||||||||||
Intrinsic
Value of Unvested Equity
|
-- | -- | 236,311 | 342,251 | 342,251 | |||||||||||||||
Total
|
-- | -- | 360,011 | 342,251 | 342,251 |
_______________ | |
(1)
|
Under
the terms of Home Federal’s 2005 Stock Option and Incentive Plan, 2005
Recognition and Retention Plan, 2008 Equity Plan, and each employee’s
Salary Continuation Plan (“SCP”), the unvested options restricted stock,
and SCP benefits would accelerate upon a termination associated with a
change in control (“CIC”). For all five named executive
officers, Home Federal places a limit on CIC payouts restricting such
payments to the amounts below those defined as golden parachute payments
under 280G of the Internal Revenue Code. The terms specified
under Mr. William’s employment agreements set the cash severance payout
amounts at slightly below the 280G limit. Due to the 280G
limitation on payouts, the remaining severance balance was placed in the
health and welfare benefits category with zero values reported for the
intrinsic value of unvested equity for Mr. Williams. For
Messrs. Nadeau, Emerson, and Eyre, the CIC agreements set the cash
severance payouts at two times base salary and the continuation of health
and wellness benefits for two years. Due to the 280G limitation
on payouts, the remaining severance balance was placed in the intrinsic
value of equity category. For Ms. Bateman, the Employee
Severance Compensation plan sets the cash severance at one times annual
compensation. Due to the 280G limitation on payouts for Ms.
Bateman, the remaining severance balance was placed in the intrinsic value
of equity category. In the absence of the 280G limitation
amounts under all categories, with the exception of cash severance, would
exceed the levels reported here. Under the terms of the
agreements for Messrs. Williams, Nadeau, Emerson, and Eyre, each employee
may select to receive the severance payment in the relevant form of their
choosing (equity or health/welfare benefits) with a commensurate reduction
in the cash severance to remain in compliance with the 280G
limitation.
|
(2)
|
Present
value of payout is presented in the table and is based upon a discount
rate of 7.5% per the terms of the agreement.
|
(3)
|
The
amount reported would be attributed to the vested amount of the SCP upon
the date of termination. Vesting in the SCP benefit would accelerate under
a CIC, due to the 280G limitations specified under the contract no
additional payment amount would be
made.
|
• |
The
Audit Committee has reviewed and discussed the audited financial
statements with management;
|
|
• |
The
Audit Committee has discussed with the independent registered public
accounting firm, Moss Adams LLP, the matters required to be discussed by
Statement on Auditing Standards No. 61, Communication with Audit
Committees, as amended, as adopted by the Public Company Accounting
Oversight Board in Rule 3200T;
|
|
• |
The
Audit Committee has received the written disclosures and the letter from
the independent registered public accounting firm required by applicable
requirements of the Public Company Accounting Oversight Board regarding
the independent registered public accounting firm’s communications with
the Audit Committee concerning independence, and has discussed with the
independent registered public accounting firm the independent registered
public accounting firm’s independence;
and
|
• |
The
Audit Committee has, based on its review and discussions with management
of the 2009 audited financial statements and discussions with the
independent registered public accounting firm, recommended to the Board of
Directors that Home Federal’s audited financial statements for the year
ended September 30, 2009 be included in its Annual Report on Form
10-K.
|
|
Robert
A. Tinstman (Chairman)
|
N.
Charles Hedemark
|
|
Richard
J. Navarro
|
|
James
R. Stamey
|
Years
Ended
|
||||||||
September
30,
|
||||||||
2009
|
2008
|
|||||||
Audit
Fees
|
$ | 222,500 | $ | 212,000 | ||||
Audit-Related
Fees (1)
|
116,244 | (2) | 32,000 | |||||
Tax
Fees
|
-- | 7,000 | ||||||
All
Other Fees
|
-- | -- |
____________ | ||
(1)
|
Includes
costs incurred in relation to the audit of employee benefit
plans.
|
|
(2)
|
Includes
audit costs associated with the acquisition of Community First Bank
completed on August 7, 2009.
|
BY ORDER OF THE BOARD OF DIRECTORS | |
/s/ Eric S. Nadeau | |
Eric
S. Nadeau
|
|
Secretary
|
FOR
ALL
|
||||||
FOR
|
WITHHELD
|
EXCEPT
|
||||
1.
|
The
election as director of the nominees listed below for
|
[ ]
|
[ ]
|
[ ]
|
||
a
three-year term (except as marked to the contrary below).
|
||||||
James
R. Stamey
|
||||||
Robert
A. Tinstman
|
||||||
INSTRUCTION: To
withhold authority to vote
|
||||||
for
any individual nominee, mark “For All Except” and
|
||||||
write
that nominee’s name in the space provided below.
|
||||||
__________________________________ | ||||||
__________________________________ | ||||||
FOR
|
AGAINST
|
ABSTAIN
|
||||
2.
|
The
ratification of the appointment of Crowe Horwath LLP as
independent registered public accounting firm for the fiscal year ending
September 30, 2010.
|
[ ]
|
[ ]
|
[ ]
|
||
3.
|
In
their discretion, upon such other matters as may properly
come before the meeting.
|
Dated:
______________________, 200__
|
||
____________________________________ | ____________________________________ | |
PRINT
NAME OF STOCKHOLDER
|
PRINT
NAME OF STOCKHOLDER
|
|
____________________________________ | ____________________________________ | |
SIGNATURE
OF STOCKHOLDER
|
SIGNATURE
OF STOCKHOLDER
|