Liberty Bancshares Ada OH : 2nd Quarter 2022 Liberty Bancshares Inc Financial Release

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

ADA, OH / July 21, 2022 / Liberty Bancshares, Inc. (OTC Markets: LBSI), parent company of Liberty National Bank, announced earnings for the six months ended June 30, 2022 of $2.13 million or $2.36 per share (EPS). This compares to net income of $3.12 million and EPS of $3.47 for the six months ended June 30, 2021.

In terms of operating performance, LBSI's return on average assets (ROAA) was 0.96% for the six months ended June 30, 2022 compared to 1.45% for the six months ended June 30, 2021. Net interest margin was 3.56% for the six months ended June 30, 2022 compared to 3.97% for the six months ended June 30, 2021. The Efficiency Ratio was 65.52% for the six months ended June 30, 2022 compared to 56.11% for the six months ended June 30, 2021.

Total assets decreased $5.2 million to $428.3 million at June 30, 2022, compared to $433.5 million at December 31, 2021. Loans receivable, net of allowance for loan losses decreased $8.4 million to $282.5 million at June 30, 2022 from $290.9 million at December 31, 2021. Total Deposits decreased $2.1 million to $371.4 million at June 30, 2022 from $373.5 million at December 31, 2021.

Net interest income for the first six months ended June 30, 2022 was $7.48 million compared to $8.05 million for the same period ended June 30, 2021. Interest income for the first six months ended June 30, 2022 was $7.77 million compared to $8.57 million for the same period ended June 30, 2021. Interest expense decreased $232,000 or 44 percent to $290,000 for the first six months ended June 30, 2022 from $522,000 for the same period ended June 30, 2021. Total non-interest income for the first six months ended June 30, 2022 decreased $545,000 or 37 percent to $945,000 compared to $1.49 million for the first six months ended June 30, 2021. This decline in non-interest income was due primarily to a reduction in gains from the sale of secondary market real estate loans and other income. Total non-interest expense increased by $350,000 or 6 percent to $5.81 million for the first six months ended June 30, 2022 compared to $5.46 million for the same period ended June 30, 2021.

Book value was $58.33 per share as of June 30, 2022, compared to $63.05 per share as of December 31, 2021. The decline in the Company's book value was largely due to the unrealized losses on the Bank's fixed-rate investment securities. The Federal Reserve has increased the federal funds rate by 150 basis points this year with additional rate increases expected in an attempt to curtail inflation. The Liberty Bancshares, Inc. stock closed at $67.25 per share on July 18, 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 or [e-mail] Bryan L. Marshall, Executive Vice President/CFO, Liberty Bancshares, Inc. at 419-634-5015 or [e-mail] on the OTCMarkets trading platform, find us under the ticker symbol LBSI at www.otcmarkets.com.

Consolidated Statem ents of Incom e (unaudited)

($ in thousands)
	For the 6 m onths ended	For the 3 m onths ended
		6/30/22		6/30/21		6/30/22		6/30/21
Interest incom e
Loans, including fees	$	6,965	$	8,178	$	3,559	$	4,120
Securities
Taxable		551		280		306		140
Tax-exem pt		115		72		57		37
Other		135		39		94		18
Total interest incom e
	7,766		8,569		4,016		4,315
Interest expense
Deposits		290		446		154		203
Borrowings		0		76		0		35
Total interest expense
	290		522		154		239
Net interest incom e
	7,476		8,047		3,862		4,076
Provision for loan losses		-		240		-		120
Net interest incom e after provision		7,476		7,807		3,862		3,956
Noninterest incom e
Service charges on deposit accounts		404		386		211		201
Gain on sale of loans, net		233		615		120		277
Gain on sale of securities, net		-		3		-		3
Other incom e		308		486		159		134
Total noninterest incom e
	945		1,490		490		615
Noninterest expense

Salaries and em ployee benefits Occupancy expense

Furniture and equipm ent expense Data processing

State franchise tax

Deposit insurance prem ium s Other expenses

Total noninterest expense

Incom e before incom e tax Provision for incom e taxes Net incom e

Earning s per share

	3,335		3,321		1,645		1,637
	348		361		179		178
	304		328		154		163
	354		347		165		168
	234		224		118		113
	61		56		30		29
	1,170		819		645		380
	5,806		5,456		2,937		2,669
	2,615		3,840		1,415		1,903
	482		719		260		382
$	2,133	$	3,121	$	1,155	$	1,521
$	2.36	$	3.47	$	1.27	$	1.51

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.

Contact Investor Relations at [phone]

Consolidated Balance Sheets (unaudited)

($ in thousands)
		6/30/22		12/31/21		6/30/21
Assets
Cash and due from banks	$	50,384	$	66,280	$	43,729
Securities available for sale, at fair value		61,806		48,835		42,138
Securities held to m aturity		6,643		6,643		2,340
Loans receivable, net		282,492		290,851		330,180
Prem ises and equipm ent, net		4,726		4,815		4,928
Federal Reserve and Federal H om e Loan Bank stock		1,554		1,554		1,554
Bank owned life insurance		13,841		10,666		11,245
Accrued interest receivable		1,160		894		1,174
Goodwill		1,456		1,456		1,456
Other assets		4,233		1,535		2,480
Total assets	$	428,295	$	433,529	$	441,225
Liabilities
Deposits
Noninterest-bearing dem and	$	147,071	$	142,037	$	131,163
Interest-bearing dem and		22,806		18,107		26,084
Savings		144,697		145,386		149,987
Tim e certificates of deposit		56,863		67,991		65,007
Total deposits		371,437		373,520		372,240
Federal H om e Loan Bank advances		-		-		10,000
Deferred com pensation		2,469		2,308		2,153
Accrued interest payable and other liabilities		1,482		756		1,312
Total liabilities		375,388		376,584		385,705
Shareholders' Equity
Preferred stock, no par value		-		-		-
Com m on stock, $1.25 par value		1,130		1,130		1,130
Paid-in capital		17,891		17,738		17,431
Other paid-in capital - stock warrants		660		660		660
Retained earnings		43,182		41,729		40,312
Unearned ESOP com pensation		(18)		(29)		(52)
Treasury stock, at cost		(4,477)		(4,478)		(4,360)
Accum ulated other com prehensive incom e (loss)		(5,461)		195		399
Total shareholders' equity		52,907		56,945		55,521
Total liabilities and shareholders' equity	$	428,295	$	433,529	$	441,225
Book Value per Total Shares Outstanding	$	58.33	$	63.05	$	61.70
Tangible Book Value per Share	$	56.72	$	61.44	$	60.08

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.

Contact Investor Relations at [phone]