Home Fed to Sell Servicing Portfolio

Home Federal Bancorp, Columbus, Ind., has announced plans to restructure its balance sheet, in part by selling "substantially all" of its mortgage servicing portfolio and corresponding mortgage servicing rights.The company said the portfolio totals approximately $537 million, and the related nonrecourse MSRs have a carrying value of approximately $2.7 million. Sandler O'Neill Mortgage Finance LP has been retained as Home Federal's exclusive agent to facilitate the sale. Home Federal said the move furthers its strategic goal of expanding commercial banking activities in Indianapolis. "Management also believes that current favorable market conditions for valuation of mortgage servicing rights suggest that such a sale at this time will be in the best interests of shareholders," the company said. Home Federal Bancorp, the holding company of HomeFederal Bank of Columbus, Indiana, can be found online at http://www.homf.com.