Liberty Bancshares Ada OH : 1st Qtr 2022 Liberty Bancshares Inc. Financials

Liberty Bancshares, Incorporation, Parent Company of Liberty National Bank, Reports 2022 First Quarter Unaudited Financial Results

ADA, OH / April 15, 2022 / Liberty Bancshares, Inc. (OTC Markets: LBSI), parent company of Liberty National Bank (the "Bank"), announced earnings for the three months ended March 31, 2022 of $0.98 million and earnings per share (EPS) of $1.09. This compares to net income of $1.60 million and EPS of $1.78 for the three months ended March 31, 2021.

In terms of operating performance, LBSI's return on average assets (ROAA) was 0.85% for the three months ended March 31, 2022 compared to 1.50% for the three months ended March 31, 2021. Net interest Margin was 3.34% for the three months ended March 31, 2022 compared to 3.98% for the three months ended March 31, 2021. The reduction in net interest margin is largely attributable to the Bank having significant balances in low yielding cash and federal funds during the quarter ended March 31, 2022. On March 31, 2022, the Bank had $46.7 million in cash and federal funds. The Efficiency Ratio was 68.16% for the three months ended March 31, 2022 compared to 56.09% for the three months ended March 31, 2021.

Total assets increased $3.8 million to $437.3 million at March 31, 2022, compared to December 31, 2021 assets of $433.5 million. Loans receivable, net of allowance for loan losses, increased $1.1 million to $292.0 at March 31, 2022 from $290.9 million at December 31, 2021. Securities available for sale, at fair value, increased $17.7 million or 36 percent to $66.5 million at March 31, 2022 from $48.8 million at December 31, 2021. Total Deposits increased $5.3 million to $378.8 million at March 31, 2022 from $373.5 million at December 31, 2021.

Net interest income for the first quarter ended March 31, 2022 was $3.61 million compared to $3.97 million for the same period ended March 31, 2021. Interest income for the first quarter ended March 31, 2022 was $3.75 million compared to $4.26 million for the same period ended March 31, 2021. Interest expense decreased $148,000 or 52 percent to $136,000 for the first quarter ended March 31, 2022 from $284,000 for the same period ended March 31, 2021. Total non-interest income for the first quarter ended March 31, 2022 decreased $421,000 or 48 percent to $455,000 compared to $876,000 for the first quarter ended March 31, 2021. This reduction in non-interest income was due to a reduction in real estate loans that were sold in the secondary market and a reduction in fees from SBA PPP loans. Total non-interest expense increased by $78,000 or 3 percent to $2.87 million for the first quarter ended March 31, 2022 compared to $2.79 million for the first quarter ended March 31, 2021.

Book value has declined by 2 percent to $61.43 per share as of March 31, 2022, compared to $63.05 per share as of December 31, 2021. This reduction is a result of the mark - to - market adjustment in which the company posted an unrealized loss of $3.0 million in the investment portfolio which translates to a $2.4 million accumulated other comprehensive loss as of March 31, 2022 in the company's equity. Increases in market interest rates combined with expectations that the Federal Reserve will be increasing interest rates numerous times over the remainder of 2022 caused the reduction in the market value of the investment securities. The Liberty Bancshares, Inc. stock closed at $67.05 per share on March 9, 2022.

Liberty Bancshares, Inc. is a registered Ohio bank holding company and the parent of Liberty National Bank which operates six offices in central and northwest Ohio. The administrative office for Liberty Bancshares, Inc. is located at 118 South Main Street, Ada, Ohio 45810. Liberty National Bank is headquartered at 100 East Franklin Street, Kenton, Ohio 43326.

Safe Harbor Statement

This release contains forward-looking statements that reflect management's current view of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involved risks and uncertainties, including, but not limited to, the ability of the Company to implement its strategy and expand its lending operations.

For more information contact: Ronald L. Zimmerly, Jr., President & CEO, Liberty Bancshares, Inc. at 419-673-1217 [e-mail] or Bryan L. Marshall, Executive Vice President/CFO, Liberty Bancshares, Inc. at 419-634-5015 [e-mail] or on the OTCMarkets trading platform, find us under the ticker symbol LBSI atwww.otcmarkets.com.

Consolidated Statements of Income (unaudited)

Interest income Loans, including fees Secu r it ies

Taxable

Tax-exem pt Other

Total interest income Interest expense

Deposits Borrowings

Total interest expense Net interest income

For the 3 months ended 3/31/22 3/31/21

$

3,406 $ 4,058

245 141

58 36

40 20

3,749 4,255

136 243

0 41

136 3,613

284 3,972

Provision for loan losses

Net interest income after provisionNoninterest income

Service charges on deposit accounts Gain on sale of loans, net

Gain on sale of securities, net Other income

Total noninterest income Noninterest expense

Salaries and em ployee benefits Occupancy expense

Furniture and equipm ent expense Data processing

State franchise tax Depositinsurancepremiums Other expenses

Total noninterest expense Income before income tax Provision for income taxes Net income

- 3,613

120 3,852

193 185

113 338

- 149 455

- 352 876

1,690 1,684

168 183

150 165

190 180

116 111

30 27

524 438

2,868 1,200 222

2,790 1,938 338

$

978

$

1,601

Earnings per share

$

1.09

$

1.78

Liberty Bancshares, Inc. is a bank holding company headquartered in Kenton, Ohio and the sole shareholder of Liberty National Bank, a nationally chartered community bank founded in 1893.

Consolidated Balance Sheets (unaudited)

Assets

Cash and due from banks

Securities available for sale, at fair value Securities held to m aturity

3/31/22

12/31/21

$

46,688 $ 66,280 66,539 48,835 6,643 6,643

Loans receivable, net 292,037 290,851

Prem ises and equipm ent, net

Federal Reserve and Federal Hom e Loan Bank stock Bank owned life insurance

Accrued interest receivable Goodwill

Other assets

Total assets Liabilities Deposits

Noninterest-bearing demand Interest-bearing demand

4,807 4,815

1,554 1,554

13,850 10,666

1,177 894

1,456 1,456

2,524 1,535

$

437,275

$

433,529

$

152,618 $ 142,037 22,934 18,107

Savin g s 147,677 145,386

Tim e certificates of deposit

Total deposits

Federal Hom e Loan Bank advances Deferred com pensation

Accrued interest payable and other liabilities

Total liabilities

Shareholders' Equity Preferred stock, no par value Com m on stock, $1.25 par value Paid-in capital

Other paid-in capital -stock warrants Retained earnings

Unearned ESOP com pensation Treasury stock, at cost

Accum ulated other com prehensive incom e (loss)

Total shareholders'equity

Total liabilities and shareholders'equity

55,564 67,991

378,793 -373,520 -

2,390

2,308

687

756

381,870

376,584

-

-1,130 1,130

17,775 17,738

660 660

42,705 41,729

(23) (29)

(4,440) (2,402) 55,405

(4,478)

195 56,945

$

437,275

$

433,529

Book Value per Total Shares Outstanding Tangible Book Value per Share

$ $

61.43 59.82

• $ 63.05

• $ 61.44

Liberty Bancshares, Inc. is a bank holding company headquartered in Kenton, Ohio and the sole shareholder of Liberty National Bank, a nationally chartered community bank founded in 1893.