HOME FEDERAL BANCORP LONG-TERM INCENTIVE PLAN

                                                                    Exhibit 10.1

                  HOME FEDERAL BANCORP LONG-TERM INCENTIVE PLAN

                            Effective January 1, 2005

1. PLAN PURPOSE.

         The Home Federal Bancorp Long-Term Incentive Plan (the "Plan") is

intended to benefit Home Federal Bancorp (the "Company") by rewarding executives

who, as determined by the Company, materially contribute to the achievement of

the strategic objectives of the Company and its Subsidiaries (as defined below).

This Plan, by providing executives an opportunity to earn long-term incentive

compensation based upon the achievement of long-term strategic goals, is

designed to align executive interests with owners' interests, recognize team

achievement and facilitate attracting, motivating and retaining key executives

of the highest caliber.

2. DEFINITIONS.

   Except as otherwise specified, the following terms have the meanings

indicated below for the purposes of this Plan:

   (a) "Award" means the long term incentive award granted to a Participant 

under this Plan.

   (b) "Award Levels" means and includes, for each Award, a minimum, target and/

or maximum level based on a percentage of the Participant's Base Salary at which

the Participant may earn an incentive payment under this Plan.

   (c) "Base Salary" means the annual weighted average base cash salary paid by 

the Company and its Subsidiaries to a Participant during that portion of a

Performance Period when the Participant is participating in the Plan; provided,

however, that for purposes of this Plan, a Participant's Base Salary shall

include base salary deferred by the Participant under any tax qualified or

non-tax qualified deferred compensation plan maintained by the Company and

salary reductions under a Company plan maintained under Code Section 125 and

shall not include short term disability pay or worker's compensation pay.

   (d) "Beneficiary" means the person or persons designated by the Participant 

to receive amounts under this Plan in the event of a Participant's death. To be

effective, a Beneficiary designation must be filed with the Company during the

Participant's life on a form prescribed by the Company. If no person has been

designated as the Participant's Beneficiary, or if no person designated as

Beneficiary survives the Participant, the Participant's estate shall be the

Participant's "Beneficiary."

   (e) "Board" means the Board of Directors of the Company.

   (f) "Change in Control" shall mean a change in control of the Company or

HomeFederal Bank within the meaning of 12 C.F.R. ss. 574.4(a) (other than a

change of control resulting from a trustee or other fiduciary holding shares of

common stock under an employee benefit plan of the Company or any Subsidiary).

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   (g) "Code" means the Internal Revenue Code of 1986, as amended or any

subsequently enacted federal revenue law.

   (h) "Committee" means the Compensation Committee of the Board, provided that,

if any member of the Committee does not qualify as both an outside director for

purposes of Code Section 162(m) and a non-employee director for purposes of Rule

16b-3, the remaining members of the Committee (but not less than two members)

shall be constituted as a subcommittee of the Committee to act as the Committee

for purposes of this Plan.

   (i) "Company" means Home Federal Bancorp, and any successor by merger,

consolidation or otherwise.

   (j) "Covered Employee" means a Participant who is a "covered employee" as

defined in Code Section 162(m)(3) and the regulations promulgated thereunder.

   (k) "Disability" has the meaning contained in the HomeFederal Bank's Group 

Long Term Disability Insurance program as may be applicable from time to time to

the particular Participant.

   (l) "ERISA" means the Employee Retirement Income Security Act of 1974, as now

in effect or as amended from time to time.

   (m) "Final Award" means any Award determined and adjusted pursuant to 

Section 5.

   (n) "Participant" means an eligible Company or Subsidiary executive selected 

for participation in the Plan in accordance with the procedures set forth in 

Section 3.

   (o) "Performance Criteria" means any of the following areas of performance of

the Company, and/or any Subsidiary, as determined under U.S. generally accepted

accounting principles or as publicly reported by the Company (determined in

either absolute terms or relative to the performance of one or more similarly

situated companies or a published index covering the performance of a number of

companies): asset growth; combined net worth; debt to equity ratio; earnings per

share; total shareholder return; efficiency ratio; revenues; investment

performance; operating income (with or without investment income or income

taxes); cash flow; margin; net income, before or after taxes; earnings before

interest, taxes, depreciation and/or amortization; return on capital, equity,

revenue or assets; or stock price appreciation. Any Performance Criteria may be

used with or without adjustment for extraordinary items or nonrecurring items.

   (p) "Performance Goal" means a performance goal established by the Committee

with respect to a given Award that, if the Award is intended to comply with the

requirements of Code Section 162(m), meets the "objectivity" standard of Code

Section 162(m) and relates to one or more Performance Criteria.

   (q) "Performance Period" means a period of years, not in excess of 5 years,

established by the Committee, for which the achievement of the Performance

Goal(s) shall be determined for purposes of determining the amount of an Award.

Performance Periods may, but are not required to, have overlapping years.

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   (r) "Plan" means this Home Federal Bancorp Long-Term Incentive Plan as set 

forth herein.

   (s) "Retirement" means a retirement which would entitle the Participant to 

early or normal retirement benefits under any then existing pension plan of the

Company or any Subsidiary, as determined by the Committee in its sole

discretion.

   (t) "Subsidiary" means any corporation (other than the Company) in an

unbroken chain of corporations beginning with the Company if, as of the date of 

the Award, each of the corporations other than the last corporation in the

unbroken chain owns stock possessing 50% or more of the total combined voting

power of all classes of stock in one of the other corporations in such chain.

3. ELIGIBILITY.

   (a) Eligibility and Participation.

   Plan eligibility is limited to key executives of the Company or a Subsidiary

having the opportunity to significantly affect the Company's achievement of its 

strategic objectives. Participants in this Plan who are granted Awards under 

this Plan shall be selected by the Committee in its complete and sole 

discretion.

   (b) Termination of Participation.

   Subject to the terms of any employment agreement with a Participant, at any

time during a Performance Period and prior to the date on which an Award becomes 

a Final Award, the Committee in its complete and sole discretion may discontinue 

the participation in the Plan of any Participant, in which case the Award shall 

be forfeited in its entirety.

4. GRANTING OF AWARD.

   (a) Granting of Awards.

   The Committee may grant Awards in accordance with this Plan.