Liberty, Missouri – Liberty Savings Bank, F.S.B., (OTC Bulletin Board: LBTM) reported earnings for the year ended September 30, 2004 of $963,000 or $.73 per diluted share, compared to $701,000 or $.53 per diluted share for the year ended September 30, 2003. Net earnings improved due to increased net interest income and lower non-interest expense. Net earnings were negatively affected by lower non-interest income and and increase of $678,000 in the provision for loan losses.

Net interest income increased by $1,072,000 from $5,492,000 for 2003 to $6,564,000 for 2004 as a result of a lower interest expense and an increase in earning assets. Non-interest expense decreased from $5,973,000 for 2003 to $5,267,000 for 2004. Non-interest income decreased by $665,000 from $1,783,000 for 2003 to $1,118,000 for 2004 due to lower gains on sale of loans and securities.

Total assets increased from $189.3 million as of September 30, 2003, to $213.5 million as of September 30, 2004. Total loans increased from $142.0 million to $159.8 million during the same period due primarily to an increase in commercial real estate and residential construction lending. During fiscal year 2004, total deposits increased 12.17%, from $136.3 million to $152.9 million. Stockholders’ equity increased $719,000, to $20.2 million at September 30, 2004 from $19.5 million at September 30, 2003.

Liberty Savings Bank, F.S.B., originally chartered by the State of Missouri in 1955, has operated as a federally chartered stock savings bank since 1995. The bank, with $200 million in assets, is headquartered in Liberty, Missouri with offices in Kansas City, Plattsburg, and Platte City, Missouri. Liberty Savings Bank offers banking and related financial services to both individual and business customers.