Great American Bancorp : 2023 Q1 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

April 18, 2023

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for First Quarter 2023

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 $531 thousand for the three months ended March 31, 2023, an increase of $453 thousand, from $78 thousand reported for the three months ended March 31, 2022. Basic and fully diluted earnings per share were $1.33 for the three months ended March 31, 2023 compared to $0.19 for the same period in 2022. The return on average assets ("ROA") and the return on average equity ("ROE") were 0.99% and 10.93%, respectively, for the three months ended March 31, 2023, compared to 0.14% and 1.72%, respectively, for the three months ended March 31, 2022.

Net interest income increased $885 thousand in the first quarter of 2023 compared to the same period in 2022. During 2022, the Bank purchased short term United State treasury bonds reducing the Bank's position in deposits with financial institutions. The average balance of cash and cash equivalents and U.S. Treasury bonds for the three months ended March 31, 2023 and 2022 was $118.491 million and $127.569 million, respectively. Despite the average balance decreasing, 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"), and interest on securities increased $755 thousand in the first quarter of 2023 compared to the same period in 2022 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 4 ¾ to 5 percent by the end of March 2023.

Noninterest income decreased $96 thousand in the first quarter of 2023, from $950 thousand for the three months ended March 31, 2022 to $854 thousand for the three months ended March 31, 2023 due primarily to a decrease in net gain on sales of loans. Net gains on sales of loans decreased $52 thousand in the first three months of 2023 compared to the same period in 2022 due to the Company selling $1.737 million in loans during the first three months of 2023 compared to $3.550 million in loans sold in the first three months of 2022.

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Total noninterest expense increased $205 thousand, from $1.865 million for the three months ended March 31, 2022 to $2.070 million for the three months ended March 31, 2023 due primarily to salaries and employee benefits.

Total assets at March 31, 2023 were $218.258 million compared to $218.874 million at December 31, 2022, decreasing $616 thousand. At March 31, 2023, cash and cash equivalents were $34.234 million and U.S. Treasuries maturing in less than one year were $75.300 million. Total net loans, including loans held for sale, were $92.172 million at March 31, 2023, increasing $25 thousand from total net loans of $92.147 million at December 31, 2022. Total deposits decreased $1.508 million, from $196.039 million at December 31, 2022 to $194.531 million at March 31, 2023.

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-2023-03

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Balance Sheets

March 31, 2023 and 2022

(unaudited except amounts reported as of December 31, 2022; in thousands, except share data)

		2023		2022
Assets
Cash and due from banks	$	3,387	$	4,477
Interest-bearing demand deposits		30,847		25,960
Cash and cash equivalents		34,234		30,437
Securities available for sale		20		21
Securities held to maturity		84,475		89,094
Federal Home Loan Bank stock, at cost		258		258
Loans held for sale		224		-
Loans, net of allowance for loan losses of 2032 - $929; 2022 - $861		91,948		92,147
Premises and equipment, net		3,848		3,842
Goodwill		485		485
Other real estate owned		197		323
Other assets		2,569		2,267
Total assets	$	218,258	$	218,874
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	57,251	$	50,742
Interest-bearing		137,280		145,297
Total deposits		194,531		196,039
Advances from borrowers for taxes and insurance		445		229
Other liabilities		3,352		3,038
Total liabilities		198,328		199,306
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		35,908		35,494
Accumulated other comprehensive loss		(199)		(199)
Common stock in treasury, at cost (2023 - 601,611 shares; 2022 -600,011 shares)		(19,099)		(19,047)
Total stockholders' equity		19,930		19,568
Total liabilities and stockholders' equity	$	218,258	$	218,874

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Year Ended March 31, 2023 and 2022

(unaudited, in thousands, except share data)
Interest and Dividend Income		2023		2022
$	1,078
Loans	$	951
Securities		546		46
Dividends on Federal Home Loan Bank stock		2		1
Deposits with financial institutions and other		303		48
Total interest and dividend income		1,929		1,046
Interest Expense		14
Deposits			16
Other		1		1
Total interest expense		15		17
Net Interest Income		1,914		1,029
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		1,914		1,029
Noninterest Income		539
Insurance sales commissions			550
Customer service fees		110		118
Other service charges and fees		85		87
Net gain on sales of loans		45		97
Loan servicing fees, net of amortization of mortgage servicing rights		26		29
Net gain on sales of other real estate owned		8		4
Other		41		65
Total noninterest income		854		950
Noninterest Expense		1,171
Salaries and employee benefits			1,082
Occupancy expense		146		150
Equipment expense		229		224
Professional fees		72		74
Marketing expense		55		39
Printing and office supplies		33		31
Directors and committee fees		44		44
Other real estate owned expense, net		95		45
FDIC deposit insurance expense		15		15
Other		210		161
Total noninterest expense		2,070		1,865
Income Before Income Taxes		698		114
Income tax expense		167		36
Net Income	$	531	$	78
Earnings per share, basic and diluted	$	1.33	$	0.19
Dividends Declared per Share	$	0.17	$	0.17

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Selected Financial Data

(unaudited, in thousands, except share data)

		As of		As of
		March 31,		December 31,
		2023		2022
Total assets	$	218,258	$	218,874
Total loans, net		92,172		92,147
Loan loss reserve		929		861
Non-performing loans		59		-
Non-performing loans to total assets		0.03%		0.00%
Allowance for loan losses to total loans		1.00%		0.93%
Allowance for loan losses to total assets		0.43%		0.39%
Other real estate owned		197		323
Investment securities		84,495		89,115
Total deposits		194,531		196,039
Checking deposits		113,244		108,199
Money market deposits		22,586		28,353
Savings deposits		47,328		47,457
Certificates of deposit		11,373		12,030
Total stockholders' equity		19,930		19,568
		Three Months		Three Months
		Ended		Ended
		March 31, 2023		March 31, 2022
Net interest margin (annualized)		3.74%		1.96%
Return on average assets (annualized)		0.99%		0.14%
Return on average equity (annualized)		10.93%		1.72%

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