 Shreveport, Louisiana , July 30, 2020 GLOBE NEWSWIRE -- HOME FEDERAL BANCORP, INC. OF LOUISIANA REPORTS RESULTS OF OPERATIONS FOR THE THREE MONTHS AND YEAR ENDED JUNE 30, 2020Shreveport, Louisiana July 30, 2020 Home Federal Bancorp, Inc. of Louisiana the Company Nasdaq: HFBL, the holding company of Home Federal Bank, reported net income for the three months ended June 30, 2020 of 1.0 million, compared to 1.2 million for the three months ended June 30, 2019. The Companys basic and diluted earnings per share were 0.63 and 0.61, respectively, for the three months ended June 30, 2020 compared to basic and diluted earnings per share of 0.66 and 0.62, respectively, for the three months ended June 30, 2019. The Company reported net income of 3.9 million for the year ended June 30, 2020 compared to 4.7 million for the year ended June 30, 2019. The Companys basic and diluted earnings per share were 2.29 and 2.14, respectively, for the year ended June 30, 2020 compared to 2.68 and 2.50, respectively, for the year ended June 30, 2019.The Company reported the following key achievements during fiscal 2020: Total deposits increased 72.6 million or 18.7 to 460.8 million at year end. Total assets increased 75.8 million or 17.1 to 518.2 million at year end. Total loans receivable increased 35.8 million or 11.0 to 359.9 million at year end.In light of the events surrounding the COVID-19 epidemic, the Company is continually assessing the effects of the pandemic on its employees, customers and communities. In March 2020, the Coronavirus Aid, Relief, and Economic Security Act the CARES Act was enacted. The CARES Act contains many provisions related to banking, lending, mortgage forbearance and taxation. The Company has worked diligently to help support its customers through the SBA Paycheck Protection Program SBA PPP, loan modifications and loan deferrals. As of June 30, 2020, Home Federal Bank has funded 374 SBA PPP loans totaling approximately 46.2 million to existing customers and key prospects located primarily in our trade area of NW Louisiana. Our commercial lenders and operational support staff have worked diligently to accomplish what seemed to be an insurmountable task in providing a lifeline to our small community businesses. We believe the customer interaction during this time provides a real opportunity to broaden and deepen our customer relationships while benefiting our community.Home Federal Bank is also working with customers affected by COVID-19 through payment accommodations on their loans. Borrowers who were current prior to becoming affected by COVID-19, that received payment accommodations as a result of the pandemic, generally are not reported as past due. Effects of COVID-19 may negatively impact management assumptions and estimates, such as the allowance for loan losses. The Bank is evaluating all payment accommodations to customers to identify and quantify any impact they might have on the Bank. However, it is difficult to assess or predict how and to what extent COVID-19 will affect the Company in the future. The 123,000 decrease in net income for the three months ended June 30, 2020 resulted primarily from a 411,000, or 14.4, increase in non-interest expense, and a 300,000, or 200.0, increase in provision for loan losses, partially offset by an increase of 379,000, or 10.3, in net interest income, a 177,000, or 22.3, increase in non-interest income and a decrease of 32,000, or 10.7, in provision for income taxes. The increase in net interest income for the three months ended June 30, 2020 was due to a 209,000, or 16.2, decrease in total interest expense, and an increase of 170,000, or 3.4, in total interest income, primarily due to a 34 basis point reduction in the average rate on interest bearing liabilities. The Companys average interest rate spread was 3.08 for the three months ended June 30, 2020 compared to 3.24 for the three months ended June 30, 2019. The Companys net interest margin was 3.40 for the three months ended June 30, 2020 compared to 3.56 for the three months ended June 30, 2019. The decrease in net interest margin on a comparative quarterly basis was primarily the result of a decrease of 50 basis points in the average yield on average balances of interest-earning assets mainly due to an increase in interest-earning deposits earning only 15 basis points for the three months ended June 30, 2020 compared to 234 basis points for the prior year due to the substantial rate decrease in overnight rates at the Federal Home Loan Bank, First National Bankers Bank, and Texas Independent Bank.The decrease in net income for the year ended June 30, 2020 resulted primarily from an increase of 1.3 million, or 11.8, in non-interest expense, a 1.3 million, or 215.2, increase in the provision for loan losses, and a decrease of 132,000, or 0.9 in net interest income partially offset by an increase of 1.5 million, or 63.5, in non-interest income and a 326,000, or 25.4, decrease in the provision for income taxes. The decrease in net interest income for the year was due to a 622,000, or 13.7, increase in interest expense on borrowings and deposits, partially offset by a 490,000, or 2.5, increase in total interest income. The Companys average interest rate spread was 3.13 for the year ended June 30, 2020 compared to 3.50 for the year ended June 30, 2019. The Companys net interest margin was 3.46 for the year ended June 30, 2020 compared to 3.78 for the year ended June 30, 2019. The decrease in the average interest rate spread and net interest margin was attributable primarily to a decrease of 26 basis points in average rate on interest earning assets for the year, from 4.90 at June 30, 2019 to 4.64 at June 30, 2020.The following tables set forth the Companys average balances and average yields earned and rates paid on its interest-earning assets and interest-bearing liabilities for the periods indicated. For the Three Months Ended June 30, 2020 2019 Average Average Average Balance YieldRate Balance YieldRate Dollars in thousands Interest-earning assets: Loans receivable 365,917 5.23 329,800 5.43 Investment securities 65,252 2.10 67,886 2.38 Interest-earning deposits 46,659 0.15 16,297 2.34 Total interest-earning assets 477,828 4.31 413,983 4.81 Interest-bearing liabilities: Savings accounts 79,179 0.81 35,647 0.61 NOW accounts 37,718 0.34 30,705 0.57 Money market accounts 74,188 0.45 76,322 1.21 Certificates of deposit 160,033 1.95 186,344 2.03 Total interest-bearing deposits 351,118 1.20 329,018 1.55 Other bank borrowings 1,927 3.33 234 5.13 FHLB advances 1,085 4.79 1,280 5.02 Total interest-bearing liabilities 354,130 1.23 330,532 1.57 For the Year Ended June 30, 2020 2019 Average Average Average Balance YieldRate Balance YieldRate Dollars in thousands Interest-earning assets: Loans receivable 340,302 5.42 326,994 5.52 Investment securities 69,073 2.26 63,029 2.32 Interest-earning deposits 29,326 1.17 14,613 2.24 Total interest-earning assets 438,701 4.64 404,636 4.90 Interest-bearing liabilities: Savings accounts 63,719 1.10 35,449 0.55 NOW accounts 33,206 0.53 30,617 0.54 Money market accounts 74,190 0.98 72,266 1.05 Certificates of deposit 167,666 2.05 178,823 1.82 Total interest-bearing deposits 338,781 1.49 317,155 1.38 Other bank borrowings 1,228 4.23 172 5.23 FHLB advances 1,197 4.76 4,697 3.04 Total interest-bearing liabilities 341,206 1.51 322,024 1.41 The 177,000 increase in non-interest income for the three months ended June 30, 2020 compared to the prior year quarterly period was primarily due to increases of 245,000 in gain on sale of loans, and 2,000 in other income, partially offset by decreases of 65,000 in service charges on deposit accounts, 4,000 in loss on sale of real estate, and 1,000 on income from bank owned life insurance. The 1.5 million increase in non-interest income for the year ended June 30, 2020, compared to the prior year, was primarily due to an increase of 925,000 in gain on sale of loans, a decrease of 345,000 in loss on sale of real estate, an increase of 219,000 in gain on sale of securities, and an increase of 44,000 in service charges on deposit accounts, partially offset by a decrease of 18,000 in other income, and a decrease of 1,000 on income from bank owned life insurance. The Company sells most of its long term fixed rate residential mortgage loan originations primarily in order to manage interest rate risk. The increase in gain on sale of loans for the year ended June 30, 2020 over the prior year reflects an increase in the amount of loans sold primarily due to the low interest rate environment.The 411,000 increase in non-interest expense for the three months ended June 30, 2020, compared to the same period in 2019, is primarily attributable to increases of 382,000 in compensation and benefits expense, 58,000 in occupancy and equipment expense, 51,000 in other non-interest expense, 14,000 in franchise and bank shares tax expense, 11,000 in data processing, 10,000 in loan and collection expense, 8,000 in legal fees, and 8,000 in deposit insurance premiums. The increases were partially offset by decreases of 98,000 in advertising expense and 33,000 in audit and examination fees. The 1.3 million increase in non-interest expense for the year ended June 30, 2020, compared to the year ended June 30, 2019, is primarily attributable to increases of 1. 