AUDIT COMMITTEE CHARTER - USE THIS ONE - 2007

________________________________ HOMELAND COMMUNITY BANK AUDIT COMMITTEE CHARTER ___________________________________ I. Purposes The Audit Committee (the “Committee”) is appointed by the Board of Directors of Homeland Community Bank (the “Bank”) to assist the Bank’s Board of Directors in overseeing the Bank’s accounting and financial reporting processes, and the audits of the financial statements of the Bank. The Audit Committee’s primary duties and responsibilities are to: ● Monitor the integrity of the Bank’s systems of internal controls and financial reporting processes. ● Monitor the independence and performance of the Bank’s independent auditors and internal auditing department, and to retain independent auditors. ● Provide communications among the independent auditors, management, the internal auditing department, and the Board of Directors. ● Review and approve the financial reports of the Bank. ● Review the Bank’s compliance with applicable laws, including those banking laws and regulations concerning loans to insiders and the federal and state laws and regulations concerning dividend restrictions, (the “Designated Banking Laws”). The Audit Committee shall provide the services of an audit committee required under Section 36 of the Federal Deposit Insurance Act, as amended (the “FDI Act”), and under any rules and regulations thereunder, including 12 C.F.R 363 under the FDI Act. The Board of Directors and the Committee ...