Great American Bancorp : 2022 Q2 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

July 19, 2022

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for the Six Months Ending June 30, 2022

Champaign, Illinois - Great American Bancorp, Inc. (OTC Pink®/GTPS), the holding company for First Federal Savings Bank of Champaign-Urbana, reported net income of $238 thousand for the six months ended June 30, 2022, which is a decrease of $111 thousand, or 31.8% from $349 thousand reported for the six months ended June 30, 2021. Basic and fully diluted earnings per share were $0.58 for the six months ended June 30, 2022 compared to $0.85 for the same period in 2021. The return on average assets ("ROA") and the return on average equity ("ROE") were 0.21% and 2.59% for the six months ended June 30, 2022, decreasing from 0.32% ROA and 3.78% ROE for the same period in 2021.

Interest income from loans decreased $336 thousand in the first six months of 2022 compared to the same period in 2021 due to a $187 thousand decrease in interest income related to the Paycheck Protection Program loans. Interest income from deposits with financial institutions and other, which are mostly overnight deposits maintained at the Federal Reserve Bank and the Federal Home Loan Bank ("FHLB") increased $164 thousand in the first six months of 2022 compared to the same period in 2021 due to the Federal Open Market Committee ("FOMC") increasing the Federal funds target rate range from 0 to 1/4 percent in March 2022 to 1 ½ to 1 ¾ percent by the end of June 2022. Interest on securities increased $169 thousand in the first six months of 2022 compared to the same period in 2021 due the Company purchasing a total of $50 million United State Treasury bonds beginning in December 2021.

Noninterest income decreased $361 thousand in the first six months of 2022 compared to the same period in 2021, from $2.190 million for 2021 to $1.829 million for 2022. The decrease in noninterest income is primarily due to the decrease in net gains on sales of loans. Net gain on sales of loans decreased $461 thousand for the six months ending June 30, 2022 compared to the same period in 2021 due to the Company selling $10.846 million in loans during the first six months of 2022 compared to $22.579 million in loans during the same period in 2021.

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Total noninterest expense decreased $196 thousand, from $3.939 million for the six months in 2021 to $3.743 million for the six months in 2022, primarily due to a decrease in other real estate owned expense. Other real estate owned expense decreased $217 thousand for the six months in 2022 compared to the same period in 2021 due to maintaining less other real estate properties during 2022 compared to the same period in 2021. The Company sold thirty-one properties during the period of June 30, 2021 to June 30, 2022 and currently has eight properties remaining.

Net income for the three months ended June 30, 2022 was $160 thousand, which is an increase of $111 thousand from $49 thousand reported for the same period in 2021. The return on average assets ("ROA") and the return on average equity ("ROE") were 0.28% and 3.47% for the three months ended June 30, 2022, increasing from 0.09% ROA and 1.05% ROE for the same period in 2021.

Total assets at June 30, 2022 were $217.356 million compared to $230.054 million at December 31, 2021, decreasing $12.698 million. Total net loans, including loans held for sale, were $89.646 million at June 30, 2022, increasing $2.081 million or 2.4% from total net loans of $87.565 million at December 31, 2021. Total deposits decreased $12.636 million, from $207.349 million at December 31, 2021 to $194.713 million at June 30, 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-partybroker-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-2022-04

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Consolidated Balance Sheets

June 30, 2022 and December 31, 2021

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

		2022		2021
Assets
Cash and due from banks	$	3,592	$	4,356
Interest-bearing demand deposits		66,659		120,265
Cash and cash equivalents		70,251		124,621
Securities available for sale		34		52
Securities held to maturity		49,736		9,984
Federal Home Loan Bank stock, at cost		258		258
Loans held for sale		-		436
Loans, net of allowance for loan losses of 2022 - $864; 2021 - $867		89,646		87,129
Premises and equipment, net		3,920		4,041
Goodwill		485		485
Other real estate owned		511		689
Other assets		2,515		2,359
Total assets	$	217,356	$	230,054
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	50,594	$	50,277
Interest-bearing		144,119		157,072
Total deposits		194,713		207,349
Advances from borrowers for taxes and insurance		224		268
Other liabilities		3,844		3,852
Total liabilities		198,781		211,469
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		10		10
Additional paid-in capital		3,310		3,310
Retained earnings		34,771		34,671
Accumulated other comprehensive (loss) income		(668)		(668)
Common stock in treasury, at cost (2022 -593,986 shares; 2021 -590,686 shares)		(18,848)		(18,738)
Total stockholders' equity		18,575		18,585
Total liabilities and stockholders' equity	$	217,356	$	230,054

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Six Months Ended June 30, 2022 and 2021

(unaudited, in thousands, except share data)

		2022		2021
Interest and Dividend Income
Loans	$	1,890	$	2,226
Securities		170		1
Dividends on Federal Home Loan Bank stock		3		4
Deposits with financial institutions and other		222		58
Total interest and dividend income		2,285		2,289
Interest Expense
Deposits		32		35
Other		2		2
Total interest expense		34		37
Net Interest Income		2,251		2,252
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		2,251		2,252
Noninterest Income
Insurance sales commissions		938		860
Customer service fees		237		186
Other service charges and fees		177		194
Net gain on sales of loans		274		735
Loan servicing fees, net of amortization of mortgage servicing rights		53		30
Net gain on sales of other real estate owned		33		86
Other		117		99
Total noninterest income		1,829		2,190
Noninterest Expense
Salaries and employee benefits		2,148		2,177
Occupancy expense		290		306
Equipment expense		445		421
Professional fees		153		158
Marketing expense		96		78
Printing and office supplies		64		52
Directors and committee fees		88		88
Other real estate owned expense, net		98		315
FDIC deposit insurance expense		31		28
Other		330		316
Total noninterest expense		3,743		3,939
Income Before Income Taxes		337		503
Income tax expense		99		154
Net Income	$	238	$	349
Earnings per share, basic and diluted	$	0.58	$	0.85
Dividends Declared per Share	$	0.34	$	0.34

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three Months Ended June 30, 2022 and 2021

(unaudited, in thousands, except share data)

		2022		2021
Interest and Dividend Income
Loans	$	939	$	1,047
Securities		124		-
Dividends on Federal Home Loan Bank stock		2		2
Deposits with financial institutions and other		174		32
Total interest and dividend income		1,239		1,081
Interest Expense
Deposits		16		18
Other		1		1
Total interest expense		17		19
Net Interest Income		1,222		1,062
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		1,222		1,062
Noninterest Income
Insurance sales commissions		388		424
Customer service fees		119		98
Other service charges and fees		90		101
Net gain on sales of loans		177		291
Loan servicing fees, net of amortization of mortgage servicing rights		24		18
Net gain on sales of other real estate owned		29		74
Other		52		49
Total noninterest income		879		1,055
Noninterest Expense
Salaries and employee benefits		1,066		1,081
Occupancy expense		140		156
Equipment expense		221		212
Professional fees		79		79
Marketing expense		57		43
Printing and office supplies		33		26
Directors and committee fees		44		44
Other real estate owned expense, net		53		223
FDIC deposit insurance expense		16		14
Other		169		163
Total noninterest expense		1,878		2,041
Income Before Income Taxes		223		76
Income tax expense		63		27
Net Income	$	160	$	49
Earnings per share, basic and diluted	$	0.39	$	0.12
Dividends Declared per Share	$	0.17	$	0.17

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