Great American Bancorp : 2021 Q2 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

July 20, 2021

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for Second Quarter 2021

Champaign, Illinois - Great American Bancorp, Inc. (OTC Pink®/GTPS), the holding company for First Federal Savings Bank of Champaign-Urbana, reported net income of $349 thousand for the six months ended June 30, 2021, which is a decrease of $220 thousand, or 38.7% from $569 thousand reported for the six months ended June 30, 2020. Basic and fully diluted earnings per share were $0.85 for the six months ended June 30, 2021 compared to $1.34 for the same period in 2020. The return on average assets ("ROA") and the return on average equity ("ROE") were 0.32% and 3.78% for the six months ended June 30, 2021, decreasing from 0.62% ROA and 6.20% ROE for the same period in 2020.

Net interest income decreased $296 thousand in the first six months of 2021 compared to the same period in 2020 due to a $180 thousand decrease in 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"). Interest income earned on deposits with financial institutions and other decreased due to the Federal Open Market Committee ("FOMC") decreasing the Federal funds target rate range to 0 to 1/4 percent in March 2020 as a result of the COVID-19 pandemic.

Noninterest income increased $282 thousand in the first six months of 2021, from $1.908 million for the first six months of 2020 to $2.190 million in the first six months of 2021. The increase in noninterest income is primarily due to the increase in net gains on sales of loans. Net gain on sales of loans increased $225 thousand in the first six months of 2021 compared to the same period in 2020 due to the Company selling $22.579 million in loans during the first six months of 2021 compared to $21.283 million in loans during the same period in 2020.

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Total noninterest expense increased $294 thousand, from $3.645 million for the first six months in 2020 to $3.939 million for the same period in 2021, primarily due to an increase in other real estate owned expense. Other real estate owned expense increased $304 thousand for the first six months in 2021 compared to the same period in 2020 due to foreclosing on and repairing thirty-one1-4 family non-owner occupied properties in March of 2021.

Net income for the three months ended June 30, 2021 was $49 thousand, which is a decrease of $240 thousand from $289 thousand reported for the same period in 2020 primarily due to a decrease in interest income on loans and an increase in other real estate owned expense. Interest income on loans decreased $152 thousand in the three months ended June 30, 2021 compared to the same period in 2020 primarily due to the decrease outstanding loans. Other real estate owned expense increased $222 thousand for the three months ending June 30, 2021 compared to the same period in 2020 due to the aforementioned increase in other real estate owned.

Total assets at June 30, 2021 were $211.684 million compared to $203.659 million at December 31, 2020, increasing $8.025 million. Total net loans, including loans held for sale, were $87.354 million at June 30, 2021, decreasing $4.687 million or 5.1% from total net loans of $92.041 million at December 31, 2020. Total deposits increased $11.972 million, from $176.856 million at December 31, 2020 to $188.828 million at June 30, 2021.

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-2021-04

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Consolidated Balance Sheets

June 30, 2021 and December 31, 2020

(unaudited except amounts reported as of December 31, 2020; in thousands, except share data)

		2021		2020
Assets
Cash and due from banks	$	3,600	$	5,567
Interest-bearing demand deposits		111,006		97,570
Cash and cash equivalents		114,606		103,137
Securities available for sale		56		70
Securities held to maturity		7		9
Federal Home Loan Bank stock, at cost		258		258
Loans held for sale		824		2,394
Loans, net of allowance for loan losses of 2021 - $848; 2020 - $990		86,530		89,647
Premises and equipment, net		4,051		4,131
Goodwill		485		485
Other real estate owned		2,325		752
Other assets		2,542		2,776
Total assets	$	211,684	$	203,659
Liabilities and Stock holders' Equity
Liabilities
Deposits
Noninterest-bearing	$	47,231	$	41,845
Interest-bearing		141,597		135,011
Total deposits		188,828		176,856
Federal Home Loan Bank advances		-		4,000
Advances from borrowers for taxes and insurance		192		185
Other liabilities		4,016		3,995
Total liabilities		193,036		185,036
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		34,760		34,550
Accumulated other comprehensive (loss) income		(701)		(701)
Common stock in treasury, at cost (2021 -590,476 shares; 2020 -585,135 shares)		(18,731)		(18,546)
Total stockholders' equity		18,648		18,623
Total liabilities and stockholders' equity	$	211,684	$	203,659

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Six Months Ended June 30, 2021 and 2020

(unaudited, in thousands, except share data)

Interest and Dividend Income		2021		2020
Loans	$	2,226	$	2,344
Securities		1		2
Dividends on Federal Home Loan Bank stock		4		3
Deposits with financial institutions and other		58		238
Total interest and dividend income		2,289		2,587
Interest Expense
Deposits		35		37
Other		2		2
Total interest expense		37		39
Net Interest Income		2,252		2,548
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		2,252		2,548
Noninterest Income
Insurance sales commissions		860		910
Customer service fees		186		205
Other service charges and fees		194		167
Net gain on sales of loans		735		510
Loan servicing fees, net of amortization of mortgage servicing rights		30		26
Net gain (loss) on sales of other real estate owned		86		(7)
Other		99		97
Total noninterest income		2,190		1,908
Noninterest Expense
Salaries and employee benefits		2,177		2,201
Occupancy expense		306		300
Equipment expense		421		399
Professional fees		158		157
Marketing expense		78		99
Printing and office supplies		52		57
Directors and committee fees		88		88
Other real estate owned expense, net		315		11
FDIC deposit insurance expense		28		23
Other		316		310
Total noninterest expense		3,939		3,645
Income Before Income Taxes		503		811
Income tax expense		154		242
Net Income	$	349	$	569
Earnings per share, basic and diluted	$	0.85	$	1.34
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, 2021 and 2020

(unaudited, in thousands, except share data)

Interest and Dividend Income		2021		2020
Loans	$	1,047	$	1,199
Securities		-		1
Dividends on Federal Home Loan Bank stock		2		2
Deposits with financial institutions and other		32		20
Total interest and dividend income		1,081		1,222
Interest Expense
Deposits		18		16
Other		1		1
Total interest expense		19		17
Net Interest Income		1,062		1,205
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		1,062		1,205
Noninterest Income
Insurance sales commissions		424		339
Customer service fees		98		80
Other service charges and fees		101		84
Net gain on sales of loans		291		427
Loan servicing fees, net of amortization of mortgage servicing rights		18		(4)
Net gain (loss) on sales of other real estate owned		74		-
Other		49		47
Total noninterest income		1,055		973
Noninterest Expense
Salaries and employee benefits		1,081		1,057
Occupancy expense		156		148
Equipment expense		212		203
Professional fees		79		77
Marketing expense		43		43
Printing and office supplies		26		25
Directors and committee fees		44		44
Other real estate owned expense, net		223		1
FDIC deposit insurance expense		14		12
Other		163		154
Total noninterest expense		2,041		1,764
Income Before Income Taxes		76		414
Income tax expense		27		125
Net Income	$	49	$	289
Earnings per share, basic and diluted	$	0.12	$	0.69
Dividends Declared per Share	$	0.17	$	0.17

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