Great American Bancorp : 2024 Q2 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

July 16, 2024

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for the

Six Months Ending June 30, 2024

Champaign, Illinois - Great American Bancorp, Inc. (OTC Pink®/GTPS), the holding company for First Federal Savings Bank of Champaign-Urbana, reported net income of $1.881 million for the six months ending June 30, 2024, which is an increase of $718 thousand, or 61.7% from $1.163 million reported for the six months ending June 30, 2023. Basic and fully diluted earnings per share were $4.90 for the six months ending June 30, 2024 compared to $2.92 for the same period in 2023. The return on average assets ("ROA") and the return on average equity ("ROE") were 1.92% and 17.17% for the six months ending June 30, 2024, increasing from 1.10% ROA and 11.78% ROE for the same period in 2023.

Interest income from loans increased $693 thousand in 2024 compared to 2023 due to an increase in loans, as well as an increase in the yield. Average gross loans increased $4.770 million from $93.180 million for the six months ending June 30, 2023 to $97.950 for the six months ending June 30, 2024. In addition, the yield on loans increased from 4.64% for the six months ending June 30, 2023 to 5.80% for the six months ending June 30, 2024. 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, increased $374 thousand in 2024 compared to 2023 due to the Federal Open Market Committee increasing the Federal funds target rate range from 4.25% to 4.50% as of January 1, 2023 to 5.25% to 5.50% as of July 26, 2023 and maintaining the target rate through June 30, 2024.

Noninterest income decreased $81 thousand in 2024 compared to 2023, from $1.676 million for the six months ending June 30, 2023 to $1.595 million for the same period in 2024. 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 $58 thousand for 2024 compared to 2023 due to the Company selling $1.557 million of loans during the six months ending June 30, 2024 compared to $3.620 million of loans during the same period in 2023.

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Total noninterest expense increased $51 thousand, from $4.098 million for the six months ending June 30, 2023 to $4.149 million for the same period in 2024, primarily due to an increase in salaries and employee benefits offset by a decrease in other real estate owned expenses.

Net income for the three months ending June 30, 2024 was $958 thousand, which is an increase of $326 thousand from $632 thousand reported for the same period in 2023. The return on average assets ("ROA") and the return on average equity ("ROE") were 1.94% and 17.18% for the three months ending June 30, 2024, increasing from 1.21% ROA and 12.59% ROE for the same period in 20223

Total assets at June 30, 2024 were $193.537 million compared to $191.281 million at December 31, 2023, an increase of $2.256 million. Total net loans, including loans held for sale, were $101.614 million at June 30, 2024, increasing $7.982 million or 8.5% from total net loans of $93.632 million at December 31, 2023. Total deposits increased $926 thousand, from $166.615 million at December 31, 2023 to $167.541 million at June 30, 2024.

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-2024-04

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Consolidated Balance Sheets

June 30, 2024 and December 31, 2023

(unaudited except amounts reported as of December 31, 2023; in thousands, except share data)

		2024		2023
Assets
Cash and due from banks	$	4,096	$	4,195
Interest-bearing demand deposits		30,135		35,864
Cash and cash equivalents		34,231		40,059
Securities available for sale		16		18
Securities held to maturity		50,469		50,488
Federal Home Loan Bank stock, at cost		266		258
Loans held for sale		97		-
Loans, net of allowance for loan losses of 2024 - $977; 2023 - $928		101,517		93,632
Premises and equipment, net		4,133		4,129
Goodwill		485		485
Other real estate owned		40		40
Other assets		2,283		2,172
Total assets	$	193,537	$	191,281
Liabilities and Stock holders' Equity
Liabilities
Deposits
Noninterest-bearing	$	52,375	$	46,784
Interest-bearing		115,166		119,831
Total deposits		167,541		166,615
Advances from borrowers for taxes and insurance		350		337
Other liabilities		3,155		2,971
Total liabilities		171,046		169,923
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		39,324		37,616
Accumulated other comprehensive loss		(78)		(78)
Common stock in treasury, at cost (2024 - 628,315 shares; 2023 - 613,315 shares)		(20,075)		(19,500)
Total stockholders' equity		22,491		21,358
Total liabilities and stockholders' equity	$	193,537	$	191,281

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Six Months Ended June 30, 2024 and 2023

(unaudited, in thousands, except share data)

Interest and Dividend Income		2024		2023
Loans	$	2,911	$	2,218
Securities		1,191		1,089
Dividends on Federal Home Loan Bank stock		7		4
Deposits with financial institutions and other		1,055		681
Total interest and dividend income		5,164		3,992
Interest Expense
Deposits		21		26
Other		2		2
Total interest expense		23		28
Net Interest Income		5,141		3,964
Provision (Credit) for Loan Losses		50		-
Net Interest Income After Provision (Credit) for Loan Losses		5,091		3,964
Noninterest Income
Insurance sales commissions		1,011		953
Customer service fees		234		231
Other service charges and fees		166		170
Net gain on sales of loans		42		100
Loan servicing fees, net of amortization of mortgage servicing rights		17		42
Net gain on sales of other real estate owned		-		52
Other		125		128
Total noninterest income		1,595		1,676
Noninterest Expense
Salaries and employee benefits		2,415		2,307
Occupancy expense		337		308
Equipment expense		454		439
Professional fees		158		134
Marketing expense		118		117
Printing and office supplies		52		69
Directors and committee fees		88		88
Other real estate owned expense, net		2		170
FDIC deposit insurance expense		43		49
Other		482		417
Total noninterest expense		4,149		4,098
Income Before Income Taxes		2,537		1,542
Income tax expense		656		379
Net Income	$	1,881	$	1,163
Earnings per share, basic and diluted	$	4.90	$	2.92
Dividends Declared per Share	$	0.45	$	0.37

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three Months Ended June 30, 2024 and 2023

(unaudited, in thousands, except share data)

Interest and Dividend Income		2024		2023
Loans	$	1,513	$	1,140
Securities		708		543
Dividends on Federal Home Loan Bank stock		4		2
Deposits with financial institutions and other		411		378
Total interest and dividend income		2,636		2,063
Interest Expense
Deposits		10		12
Other		1		1
Total interest expense		11		13
Net Interest Income		2,625		2,050
Provision (Credit) for Loan Losses		10		-
Net Interest Income After Provision (Credit) for Loan Losses		2,615		2,050
Noninterest Income
Insurance sales commissions		470		414
Customer service fees		111		121
Other service charges and fees		86		85
Net gain on sales of loans		12		55
Loan servicing fees, net of amortization of mortgage servicing rights		4		16
Net gain on sales of other real estate owned		-		44
Other		66		87
Total noninterest income		749		822
Noninterest Expense
Salaries and employee benefits		1,197		1,136
Occupancy expense		174		162
Equipment expense		232		210
Professional fees		78		62
Marketing expense		68		62
Printing and office supplies		26		36
Directors and committee fees		44		44
Other real estate owned expense, net		1		75
FDIC deposit insurance expense		21		34
Other		236		207
Total noninterest expense		2,077		2,028
Income Before Income Taxes		1,287		844
Income tax expense		329		212
Net Income	$	958	$	632
Earnings per share, basic and diluted	$	2.51	$	1.59
Dividends Declared per Share	$	0.25	$	0.20

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Selected Financial Data

(unaudited, in thousands, except share data)
				As of		As of
				June 30,		December 31,
				2024		2023
Total assets		$	193,537	$	191,281
Total loans, net				101,614		93,632
Loan loss reserve				977		928
Non-performing loans				95		100
Non-performing loans to total assets				0.05%		0.05%
Allowance for loan losses to total loans				0.95%		0.98%
Allowance for loan losses to total assets				0.50%		0.49%
Other real estate owned				40		40
Investment securities				50,485		50,506
Total deposits				167,541		166,615
Checking deposits				100,509		97,453
Money market deposits				18,223		18,914
Savings deposits				41,391		42,210
Certificates of deposit				7,418		8,038
Total stockholders' equity				22,491		21,358
	Three Months	Three Months	Six Months		Six Months
	Ended	Ended	Ended		Ended
	June 30, 2024	June 30, 2023	June 30, 2024		June 30, 2023
Net interest margin (annualized)	5.61%	4.15%		5.57%		3.94%
Return on average assets (annualized)	1.94%	1.21%		1.92%		1.10%
Return on average equity (annualized)	17.18%	12.59%		17.17%		11.78%

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