Great American Bancorp : 2022 Q1 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

April 19, 2022

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for First Quarter 2022

Champaign, Illinois - Great American Bancorp, Inc. (OTC Pink®/GTPS), the holding company for First Federal Savings Bank of Champaign-Urbana (the "Bank"), reported net income of $78 thousand for the three months ended March 31, 2022, a decrease of $222 thousand, from $300 thousand reported for the three months ended March 31, 2021. Basic and fully diluted earnings per share were $0.19 for the three months ended March 31, 2022 compared to $0.73 for the same period in 2021. The return on average assets ("ROA") and the return on average equity ("ROE") were 0.14% and 1.71%, respectively, for the three months ended March 31, 2022, compared to 0.57% and 6.54%, respectively, for the three months ended March 31, 2021.

Net interest income decreased $161 thousand in the first quarter of 2022 compared to the same period in 2021 due primarily to a $228 thousand decrease in interest on loans. During the first quarter of 2021, the Company recovered, on a cash basis, $106 thousand of interest on loans because of collection efforts on non-performing assets. In addition, interest on loans related to the Paycheck Protection Program ("PPP") loans decreased $81 thousand in the first quarter of 2022 compared to the same period in 2021 due to the forgiveness and payoff off all PPP loans.

Noninterest income decreased $185 thousand in the first quarter of 2022, from $1.135 million for the three months ended March 31, 2021 to $950 thousand for the three months ended March 31, 2022 due primarily to a decrease in net gain on sales of loans offset by an increase in insurance sales commissions. Net gains on sales of loans decreased $347 thousand in the first three months of 2022 compared to the same period in 2021 due to the Company selling $3.550 million in loans during the first three months of 2022 compared to $12.381 million in loans sold in the first three months of 2021.

Total noninterest expense decreased $33 thousand, from $1.898 million for the three months ended March 31, 2021 to $1.865 million for the three months ended March 31, 2022.

Total assets at March 31, 2022 were $229.436 million compared to $230.054 million at December 31, 2021, decreasing $618 thousand. Total net loans, including loans held for sale, were $90.886 million at March 31, 2022, $3.321 million from total net loans of $87.565 million at December 31, 2021. Total deposits decreased $844 thousand, from $207.349 million at December 31, 2021 to $206.505 million at March 31, 2022.

First Federal Savings Bank of Champaign-Urbana is headquartered in Champaign, Illinois, and operates through its administrative/branch office in Champaign and through one additional full service branch located in Urbana, Illinois. The Bank also provides full service brokerage activities through a third-party broker-dealer. The Bank's subsidiary, Park Avenue Service Corporation, sells insurance products through the GTPS Insurance Agency. The Bank's deposits are insured by the Federal Deposit Insurance Corporation.

This earnings report may contain certain forward-looking statements which are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact the Company's earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, and competition, changes in accounting principles, policies, or guidelines, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting the Company's operations, pricing, products and services. Great American Bancorp, Inc. stock is traded on OTC Pink®, under the symbol, "GTPS."

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GTPS-pr-2022-03

GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Consolidated Balance Sheets

March 31, 2022 and December 31, 2021

(unaudited except amounts reported as of December 31, 2021; in thousands, except share data)

Assets

Cash and due frombanks Interest-bearing demand deposits Cash and cash equivalents

2022

2021

$

3,980 $ 4,356 91,822 120,265

95,802

124,621

Securities available for sale Securities held to maturity

Federal Home Loan Bank stock, at cost Loans held for sale

Loans, net of allowance for loan losses of 2022 - $863; 2021 - $867 Premises and equipment, net

Goodwill

Other real estate owned Other assets

Total assets

Liabilities and Stockholders' Equity Liabilities

Deposits Noninterest-bearing Interest-bearing Total deposits

Federal Home Loan Bank advances

Advances from borrowers for taxes and insurance Other liabilities

Total liabilities Stockholders' Equity

Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued Common stock, $0.01 par value; 1,000,000 shares authorized and issued Additional paid-in capital

Retained earnings

Accumulated other comprehensive (loss) income

Common stock in treasury, at cost (2022 -591,986 shares; 2021 -590,686 shares)

Total stockholders' equity

Total liabilities and stockholders' equity

43 52

34,812 9,984

258 258

340 436

90,546 87,129

3,981 4,041

485 485

572 689

2,597 2,359

• $ 229,436

$ 230,054

$

56,827 $ 50,277 149,678 157,072

206,505 -

207,349 -

449

268

3,933

3,852

210,887

211,469

-

-

10

10

3,310 3,310

34,680 34,671

(668) (668)

(18,783) 18,549

(18,738) 18,585

$

229,436

$

230,054

3

GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Consolidated Statements of Income

Three Months Ended March 31, 2022 and 2021

(unaudited, in thousands, except share data)

2022

2021

Interest and Dividend Income Loans

$

951 $

1,179

Securities

46 1

Dividends on Federal Home Loan Bank stock Deposits with financial institutions and other

1 2

48 26

Total interest and dividend income

1,046 1,208

Interest Expense

Deposits Other

16 17

1 1

Total interest expense

17

18

Net Interest Income Provision (Credit) for Loan Losses

Net Interest Income After Provision (Credit) for Loan Losses

1,029 - 1,029

1,190 - 1,190

Noninterest Income Insurance sales commissions Customer service fees

550 436

118 88

Other service charges and fees Net gain on sales of loans

87 93

97 444

Loan servicing fees, net of amortization of mortgage servicing rights Net gain (loss) on sales of other real estate owned

29 12

4 12

Other

65 50

Total noninterest income

950

1,135

Noninterest Expense

Salaries and employee benefits Occupancy expense Equipment expense Professional fees Marketing expense Printing and office supplies Directors and committee fees

1,082 1,096

150 150

224 209

74 79

39 35

31 26

44 44

Other real estate owned expense, net FDIC deposit insurance expense Other

45 92

15 14

161 153

Total noninterest expense

1,865

1,898

Income Before Income Taxes Income taxexpense

114 427

36 127

Net Income

Earnings per share, basic and diluted

Dividends Declared per Share

$ $ $

78

$ 300

0.19 0.17

$ 0.73

$ 0.17

GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Selected Financial Data

(unaudited, in thousands, except share data)

As of March 31, 2022

As of December 31, 2021

Total assets Total loans, net Loan loss reserve Non-performing loans Non-performing loans to total assets Allowance for loan losses to total loans Allowance for loan losses to total assets Other real estate owned

Investment securities Total deposits Checking deposits Money market deposits Savings deposits Certificates of deposit Total stockholders' equity

$

229,436 $ 230,054

90,886 87,565

863 867

30 30

0.01% 0.01%

0.94% 0.98%

0.38% 0.38%

572 689

34,855 10,036

206,505 207,349

118,437 122,025

27,216 26,397

48,257 45,922

12,595 13,005

18,549 18,585

Three Months

Ended March 31, 2022

Three Months

Ended March 31, 2021

Net interest margin (annualized)

Return on average assets (annualized)

Return on average equity (annualized)

1.96% 2.40%

0.14% 0.57%

1.71% 6.54%