Liberty Northwest Bancorp : Call Report - 2nd Quarter 2022

Liberty Bank - FDIC Certificate Number: 58778

Federal Financial Institutions Examination Council

Board of Governors of the Federal Reserve System	OMB Number: 7100-0036
Federal Deposit Insurance Corporation	OMB Number: 3064-0052
Office of the Comptroller of the Currency	OMB Number: 1557-0081
	Approval expires December 31, 2024
	Page 1 of 63

Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only and Total Assets Less than $5 Billion - FFIEC 051

Report at the close of business June 30, 2022	(20220630)
		(RCON 9999)
This report is required by law: 12 U.S.C. §324 (State member banks);	less than $5 billion, except such banks that (1) are advanced ap-
12 U.S.C. §1817 (State nonmember banks); 12 U.S.C. §161 (National	proaches institutions or are subject to Category III capital standards
banks); and 12 U.S.C §1464 (Savings associations). Unless the	for regulatory capital purposes, (2) are large or highly complex insti-
context indicates otherwise, the term "bank" in this report form	tutions for deposit insurance assessment purposes, or (3) have
refers to both banks and savings associations. This report form	elected, or have been required by their primary federal regulator,
is to be filed by banks with domestic offices only and total assets	to file the FFIEC 041.
NOTE: Each bank's board of directors and senior management are	We, the undersigned directors (trustees), attest to the correctness
responsible for establishing and maintaining an effective system of	of the Reports of Condition and Income (including the supporting
internal control, including controls over the Reports of Condition and	schedules) for this report date and declare that the Reports of
Income. The Reports of Condition and Income are to be prepared in	Condition and Income have been examined by us and to the best of
accordance with federal regulatory authority instructions. The Reports	our knowledge and belief have been prepared in conformance with
of Condition and Income must be signed by the Chief Financial	the instructions issued by the appropriate Federal regulatory
Officer (CFO) of the reporting bank (or by the individual performing an	authority and are true and correct.
equivalent function) and attested to by not less than two directors
(trustees) for state nonmember banks and three directors for state
member banks, national banks, and savings associations.
I, the undersigned CFO (or equivalent) of the named bank, attest	Director (Trustee)
that the Reports of Condition and Income (including the supporting
schedules) for this report date have been prepared in conformance	Director (Trustee)
with the instructions issued by the appropriate Federal regulatory
authority and are true and correct to the best of my knowledge
and belief.	Director (Trustee)
Signature of Chief Financial Officer (or Equivalent)
Date of Signature

Submission of Reports

Each bank must file its Reports of Condition and Income (Call Report) data by either:

To fulfill the signature and attestation requirement for the Reports

of Condition and Income for this report date, attach your bank's completed signature page (or a photocopy or a computer generated

(a)Using computer software to prepare its Call Report and then submitting the report data directly to the FFIEC's Central Data Repository (CDR), an Internet-based system for data collection (https://cdr.ffiec.gov/cdr/), or

(b)Completing its Call Report in paper form and arranging with a software vendor or another party to convert the data into the electronic format that can be processed by the CDR. The software vendor or other party then must electronically submit the bank's data file to the CDR.

For technical assistance with submissions to the CDR, please contact the CDR Help Desk by telephone at (888) CDR-3111, by

fax at [phone], or by e-mail at [e-mail].

FDIC Certificate Number	5	8	7	7	8
		(RSSD 9050)

version of this page) to the hard-copy record of the data file submitted to the CDR that your bank must place in its files.

The appearance of your bank's hard-copy record of the submitted

data file need not match exactly the appearance of the FFIEC's sample report forms, but should show at least the caption of each Call Report item and the reported amount.

Liberty Bank

Legal Title of Bank (RSSD 9017)

Poulsbo

City (RSSD 9130)

WA	98370
State Abbrev. (RSSD 9200)		ZIP Code (RSSD 9220)
Legal Entity Identifier (LEI)

(Report only if your institution already has an LEI.) (RCON 9224)

The estimated average burden associated with this information collection is 35.38 hours per respondent and is expected to vary by institution, depending on individual circumstances. Burden estimates include the time for reviewing instructions, gathering and maintaining data in the required form, and completing the information collection, but exclude the time for compiling and maintaining business records in the normal course of a respondent's activities. A Federal agency may not conduct or sponsor, and an organization (or a person) is not required to respond to a collection of information, unless it displays a currently valid OMB control number. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503, and to one of the following: Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, NW, Washington, DC 20551; Legislative and Regulatory Analysis Division, Office of the Comptroller of the Currency, Washington, DC 20219; Assistant Executive Secretary, Federal Deposit Insurance Corporation, Washington, DC 20429.

Reporting Period: June 30, 2022

July 27, 2022 3:47 PM

Liberty Bank - FDIC Certificate Number: 58778

FFIEC 051

Page 2 of 63

Consolidated Reports of Condition and Income for a Bank with

Domestic Offices Only and Total Assets Less than $5 Billion

Table of Contents

Signature Page...........................................................................	1	Schedule RC-E-Deposit Liabilities................................	RC-13, 14
Contact Information...............................................................	3, 4	Schedule RC-F-Other Assets.............................................	RC-15
Report of Income			Schedule RC-G-Other Liabilities........................................	RC-15
Schedule RI-Income Statement........................................	RI-1, 2, 3	Schedule RC-K-Quarterly Averages...................................	RC-16
Schedule RI-A-Changes in Bank Equity Capital.........................	RI-4	Schedule RC-L-Off-Balance Sheet Items	...........................RC-17
Schedule RI-B-Charge-offs and Recoveries on			Schedule RC-M-Memoranda.................................	RC-18, 19, 20
Loans and Leases and Changes in Allowances			Schedule RC-N-Past Due and Nonaccrual Loans,
for Credit Losses:
Part I. Charge-offs................................................................andRecoveries on	RI-5, 6	Leases, and Other Assets...............................	RC-21, 22, 23, 24
Loans and Leases		Schedule RC-O-Other Data for Deposit Insurance
Part II......................................................................................Changes in Allowances for Credit	RI-6
Losses		Assessments..............................................................	RC-25, 26
Schedule RI-C-Disaggregated Data on the Allowance for Loan and	Schedule RC-R-Regulatory Capital:
Lease Losses (to be completed only by selected banks)	........RI-7	Part I. Regulatory..................................................Capital Components	RC-27, 28, 29, 30
Schedule RI-E-Explanations..................................................	RI-8, 9	and Ratios
Part II. Risk-Weighted Assets.............	RC-31, 32, 33, 34, 35, 36
Report of Condition				37, 38, 39, 40, 41, 42, 43
		Schedule RC-T-Fiduciary and Related
Schedule RC-Balance Sheet.................................................	RC-1, 2		RC-44, 45, 46, 47
Services.........................................................
Schedule RC-B-Securities................................................	RC-3, 4, 5	Schedule SU-Supplemental Information.........................	SU-1, 2
Schedule RC-C-Loans and Lease Financing			Optional Narrative Statement Concerning
Receivables:	RC-6, 7, 8, 9, 10	the Amounts Reported in the Consolidated Reports
Part I. Loans and Leases.......................................	of Condition and Income..................................................	SU-3
Part II. Loans to...............................................................Small Businesses and	RC-11, 12
Small Farms

For information or assistance, national banks, state nonmember banks, and savings associations should contact the FDIC's Data Collection and Analysis Section, 550 17th Street, NW, Washington, DC 20429, toll free on (800) 688-FDIC(3342), Monday through Friday between 8:00 a.m. and 5:00 p.m., Eastern Time. State member banks should contact their Federal Reserve District Bank.

Reporting Period: June 30, 2022

July 27, 2022 3:47 PM

Liberty Bank - FDIC Certificate Number: 58778

FFIEC 051

Page 3 of 63

Contact Information for the Reports of Condition and Income

To facilitate communication between the Agencies and the bank concerning the Reports of Condition and Income, please provide contact information for

1. the Chief Financial Officer (or equivalent) of the bank signing the reports for this quarter, and (2) the person at the bank-other than the Chief Financial Officer (or equivalent)- to whom questions about the reports should be directed. If the Chief Financial Officer (or equivalent) is the primary contact
   for questions about the reports, please provide contact information for another person at the bank who will serve as a secondary contact for communications between the Agencies and the bank concerning the Reports of Condition and Income. Enter "none" for the contact's e-mail address or fax number
   if not available. Contact information for the Reports of Condition and Income is for the confidential use of the Agencies and will not be released to the public.

Chief Financial Officer (or Equivalent) Signing the Reports	Other Person to Whom Questions about the Reports
	Should be Directed

Joel Keller

Name (TEXT C490)

CFO

Title (TEXT C491)

[e-mail]

E-mail Address (TEXT C492)

[phone]

Telephone: Area code/phone number/extension (TEXT C493)

Richard Darrow

Name (TEXT C495)

CEO

Title (TEXT C496)

[e-mail]

E-mail Address (TEXT 4086)

[phone]

Telephone: Area code/phone number/extension (TEXT 8902)

[phone]

FAX: Area code/phone number (TEXT C494)

[phone]

FAX: Area code/phone number (TEXT 9116)

Chief Executive Officer Contact Information

This information is being requested so the Agencies can distribute notifications about policy initiatives, deposit insurance assessments, and other matters directly to the Chief Executive Officers of reporting institutions. Notifications about other matters may include emergency notifications that may or may not also be sent to the institution's emergency contacts listed below. Please provide contact information for the Chief Executive Officer of the reporting institution. Enter "none" for the Chief Executive Officer's e-mail address or fax number if not available. Chief Executive Officer contact information is for the confidential use of the Agencies and will not be released to the public.

Chief Executive Officer

Richard Darrow	[phone]
Name (TEXT FT42)		Telephone: Area code/phone number/extension (TEXT FT43)
[e-mail]	[phone]
E-mail Address (TEXT FT44)		Fax: Area code/phone number (TEXT FT45)

Emergency Contact Information

This information is being requested so the Agencies can distribute critical, time sensitive information to emergency contacts at banks. Please provide primary contact information for a senior official of the bank who has decision-making authority. Also provide information for a secondary contact if available.

Enter "none" for the contact's e-mail address or fax number if not available. Emergency contact information is for the confidential use of the Agencies and will not be released to the public.

Primary Contact

Richard C. Darrow

Name (TEXT C366)

CEO

Title (TEXT C367)

[e-mail]

E-mail Address (TEXT C368)

[phone]

Telephone: Area code/phone number/extension (TEXT C369)

Secondary Contact

Rhonda Morris

Name (TEXT C371)

SVP & Chief Risk Officer

Title (TEXT C372)

[e-mail]

E-mail Address (TEXT C373)

[phone]

Telephone: Area code/phone number/extension (TEXT C374)

[phone]

FAX: Area code/phone number (TEXT C370)

[phone]

FAX: Area code/phone number (TEXT C375)

Reporting Period: June 30, 2022

July 27, 2022 3:47 PM

Liberty Bank - FDIC Certificate Number: 58778

FFIEC 051

Page 4 of 63

USA PATRIOT Act Section 314(a) Anti-Money Laundering Contact Information

This information is being requested to identify points-of-contact who are in charge of your bank's USA PATRIOT Act Section 314(a) information requests. Bank personnel listed could be contacted by law enforcement officers or the Financial Crimes Enforcement Network (FinCEN) for additional information related to specific Section 314(a) search requests or other anti-terrorist financing and anti-money laundering matters. Communications sent by FinCEN to the bank for purposes other than Section 314(a) notifications will state the intended purpose and should be directed to the appropriate bank personnel for review. Any disclosure of customer records to law enforcement officers or FinCEN must be done in compliance with applicable law, including the Right to Financial Privacy Act (12 U.S.C. 3401 et seq.).

Please provide information for a primary and secondary contact. Information for a third and fourth contact may be provided at the bank's option. Enter "none" for the contact's e-mail address if not available. This contact information is for the confidential use of the Agencies, FinCEN, and law enforcement officers and will not be released to the public.

Primary Contact

Rhonda Morris

Name (TEXT C437)

SVP & Chief Risk Officer

Title (TEXT C438)

[e-mail]

E-mail Address (TEXT C439)

[phone]

Telephone: Area code/phone number/extension (TEXT C440)

Secondary Contact

Kelly Garcia

Name (TEXT C442)

VP Client Services Manager

Title (TEXT C443)

[e-mail]

E-mail Address (TEXT C444)

[phone]

Telephone: Area code/phone number/extension (TEXT C445)

Third Contact

Jennifer Carrier

Name (TEXT C870)

VP Deposit Operations Manager

Title (TEXT C871)

[e-mail]

E-mail Address (TEXT C872)

[phone]

Telephone: Area code/phone number/extension (TEXT C873)

Fourth Contact

Rynna Muchiri

Name (TEXT C875)

Client Services Specialist

Title (TEXT C876)

[e-mail]

E-mail Address (TEXT C877)

[phone]

Telephone: Area code/phone number/extension (TEXT C878)

Reporting Period: June 30, 2022

July 27, 2022 3:47 PM

Liberty Bank - FDIC Certificate Number: 58778

Consolidated Report of Income

For the period January 1, 2022 - June 30, 2022

Schedule RI-Income Statement

FFIEC 051 Page 5 of 63 RI-1

Dollar Amounts in Thousands	RIAD	Amount
1. Interest income:
a. Interest and fee income on loans:
(1) Loans secured by real estate:
............................................................................................(a) Loans secured by 1-4 family residential properties			4435	923	1.a.1.a.
................................................................................................................(b) All other loans secured by real estate			4436	1,553	1.a.1.b.
..............................................................................................................................(2) Commercial and industrial loans			4012	198	1.a.2.
(3) Loans to individuals for household, family, and other personal expenditures:
.........................................................................................................................................................(a) Credit cards			B485	0	1.a.3.a.
(b) Other (includes revolving credit plans other than credit cards, automobile loans, and
.......................................................................................................................................other consumer loans)			B486	120	1.a.3.b.
(4) Not applicable
.....................................................................................................................................................(5) All other loans (1)			4058	60	1.a.5.
....................................................(6) Total interest and fee income on loans (sum of items 1.a.(1)(a) through 1.a.(5))			4010	2,854	1.a.6.
.......................................................................................................................b. Income from lease financing receivables			4065	0	1.b.
................................................................................c. Interest income on balances due from depository institutions (2)			4115	27	1.c.
d. Interest and dividend income on securities:
(1) U.S. Treasury securities and U.S. Government agency obligations
...................................................................................................................(excluding mortgage-backed securities)			B488	14	1.d.1.
.....................................................................................................................................(2) Mortgage-backed securities			B489	154	1.d.2.
(3) All other securities (includes securities issued by states and political
...........................................................................................................................................subdivisions in the U.S.)			4060	12	1.d.3.
e. Not applicable
......................................f. Interest income on federal funds sold and securities purchased under agreements to resell			4020	0	1.f.
....................................................................................................................................................g. Other interest income			4518	0	1.g.
...............................................................................................h. Total interest income (sum of items 1.a.(6) through 1.g)			4107	3,061	1.h.
2. Interest expense:
a. Interest on deposits:
(1) Transaction accounts (interest-bearing demand deposits, NOW accounts, ATS accounts,
.............................................................................................and telephone and preauthorized transfer accounts)			4508	57	2.a.1.
(2) Nontransaction accounts:
....................................................................................................................(a) Savings deposits (includes MMDAs)			0093	51	2.a.2.a.
.......................................................................................................................(b) Time deposits of $250,000 or less			HK03	19	2.a.2.b.
.................................................................................................................(c) Time deposits of more than $250,000			HK04	7	2.a.2.c.
..........................................b. Expense of federal funds purchased and securities sold under agreements to repurchase			4180	0	2.b.
...................................................................................................................................................c. Other interest expense			GW44	48	2.c.
d. Not applicable
..................................................................................................e. Total interest expense (sum of items 2.a through 2.d)			4073	182	2.e.
.....................................................................................3. Net interest income (item 1.h minus 2.e)	4074	2,879			3.
..........................................................................................4. Provision for loan and lease losses (3)	JJ33	90			4.

1 Includes interest and fee income on "Loans to depository institutions and acceptances of other banks," "Loans to finance agricultural production and other loans to farmers," "Obligations (other than securities and leases) of states and political subdivisions in the U.S.," and "Loans to nondepository financial institutions and other loans."

2 Includes interest income on time certificates of deposit not held for trading.

3 Institutions that have adopted ASU 2016-13 should report in item 4 the provisions for credit losses on all financial assets and off-balance-sheet exposures that fall within the scope of the standard.

Reporting Period: June 30, 2022

July 27, 2022 3:47 PM