Great American Bancorp : 2021 Q3 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

October 19, 2021

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for Third 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 $317 thousand for the nine months ended September 30, 2021, which is a decrease of $687 thousand, or 68.4% from $1.004 million reported for the nine months ended September 30, 2020. Basic and fully diluted earnings per share were $0.77 for the nine months ended September 30, 2021 compared to $2.38 for the same period in 2020. The return on average assets ("ROA") and the return on average equity ("ROE") were 0.20% and 2.28% for the nine months ended September 30, 2021, decreasing from 0.71% ROA and 7.24% ROE for the same period in 2020.

Net interest income decreased $440 thousand in the first nine months of 2021 compared to the same period in 2020. Interest income from loans decreased $280 thousand for the first nine months in 2021 compared to the same period in 2020 due to a decrease in outstanding loans during the period. The yield on loans increased to 4.95% for the first nine months of 2021 from 4.84% for the same period in 2020. 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") decreased $159 thousand in the first nine months of 2021 compared to the same period in 2020 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 decreased $80 thousand in the first nine months of 2021, from $3.143 million for the first nine months of 2020 to $3.063 million in the first nine months of 2021. 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 $221 thousand in the first nine months of 2021 compared to the same period in 2020 due to the Company selling $27.685 million in loans during the first nine months of 2021 compared to $37.524 million in loans during the same period in 2020.

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Total noninterest expense increased $491 thousand, from $5.440 million for the first nine months in 2020 to $5.931 million for the same period in 2021, primarily due to an increase in other real estate owned expense. Other real estate owned expense increased $482 thousand for the first nine 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 (loss) income for the three months ended September 30, 2021 was $(32) thousand, which is a decrease of $467 thousand from $435 thousand reported for the same period in 2020 primarily due to a decrease in net gain on sales of loans and an increase in other real estate owned expense. Net gain on sales of loans decreased $446 thousand for the three months ending September 30, 2021 compared to the same period in 2020 due to the Company selling $5.106 million in loans during the third quarter of 2021 compared to $16.240 million in loans during the same period in 2020. Other real estate owned expense increased $178 thousand for the three months ending September 30, 2021 compared to the same period in 2020 due to the aforementioned increase in other real estate owned.

Total assets at September 30, 2021 were $210.307 million compared to $203.659 million at December 31, 2020, increasing $6.648 million. Total net loans, including loans held for sale, were $86.106 million at September 30, 2021, decreasing $5.935 million or 6.4% from total net loans of $92.041 million at December 31, 2020. Total deposits increased $10.811 million, from $176.856 million at December 31, 2020 to $187.667 million at September 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-2021-05

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Consolidated Balance Sheets

September 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	$	3,994	$	5,567
Interest-bearing demand deposits		110,890		97,570
Cash and cash equivalents		114,884		103,137
Securities available for sale		54		70
Securities held to maturity		7		9
Federal Home Loan Bank stock, at cost		258		258
Loans held for sale		284		2,394
Loans, net of allowance for loan losses of 2021 - $849; 2020 - $990		85,822		89,647
Premises and equipment, net		4,069		4,131
Goodwill		485		485
Other real estate owned		1,888		752
Other assets		2,556		2,776
Total assets	$	210,307	$	203,659
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	49,174	$	41,845
Interest-bearing		138,493		135,011
Total deposits		187,667		176,856
Federal Home Loan Bank advances		-		4,000
Advances from borrowers for taxes and insurance		58		185
Other liabilities		4,042		3,995
Total liabilities		191,767		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		34,659		34,550
Accumulated other comprehensive (loss) income		(701)		(701)
Common stock in treasury, at cost (2021 -590,686 shares; 2020 -585,135 shares)		(18,738)		(18,546)
Total stockholders' equity		18,540		18,623
Total liabilities and stockholders' equity	$	210,307	$	203,659

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Nine Months Ended September 30, 2021 and 2020

(unaudited, in thousands, except share data)

	2021			2020
Interest and Dividend Income
Loans	$	3,284	$	3,564
Securities		1		3
Dividends on Federal Home Loan Bank stock		5		5
Deposits with financial institutions and other		101		260
Total interest and dividend income		3,391		3,832
Interest Expense
Deposits		52		53
Other		3		3
Total interest expense		55		56
Net Interest Income		3,336		3,776
Provision (Credit) for Loan Losses		-		50
Net Interest Income After Provision (Credit) for Loan Losses		3,336		3,726
Noninterest Income
Insurance sales commissions		1,290		1,314
Customer service fees		298		309
Other service charges and fees		291		261
Net gain on sales of loans		881		1,102
Loan servicing fees, net of amortization of mortgage servicing rights		47		31
Net gain (loss) on sales of other real estate owned		97		(11)
Other		159		137
Total noninterest income		3,063		3,143
Noninterest Expense
Salaries and employee benefits		3,245		3,269
Occupancy expense		456		467
Equipment expense		642		608
Professional fees		228		229
Marketing expense		109		130
Printing and office supplies		79		84
Directors and committee fees		132		132
Other real estate owned expense, net		506		24
FDIC deposit insurance expense		43		39
Other		491		458
Total noninterest expense		5,931		5,440
Income Before Income Taxes		468		1,429
Income tax expense		151		425
Net Income	$	317	$	1,004
Earnings per share, basic and diluted	$	0.77	$	2.38
Dividends Declared per Share	$	0.51	$	0.51

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three Months Ended September 30, 2021 and 2020

(unaudited, in thousands, except share data)

		2021		2020
Interest and Dividend Income
Loans	$	1,058	$	1,220
Securities		-		1
Dividends on Federal Home Loan Bank stock		1		2
Deposits with financial institutions and other		43		22
Total interest and dividend income		1,102		1,245
Interest Expense
Deposits		17		16
Other		1		1
Total interest expense		18		17
Net Interest Income		1,084		1,228
Provision (Credit) for Loan Losses		-		50
Net Interest Income After Provision (Credit) for Loan Losses		1,084		1,178
Noninterest Income
Insurance sales commissions		430		404
Customer service fees		112		104
Other service charges and fees		97		94
Net gain on sales of loans		146		592
Loan servicing fees, net of amortization of mortgage servicing rights		17		5
Net gain (loss) on sales of other real estate owned		11		(4)
Other		60		40
Total noninterest income		873		1,235
Noninterest Expense
Salaries and employee benefits		1,068		1,068
Occupancy expense		150		167
Equipment expense		221		209
Professional fees		70		72
Marketing expense		31		31
Printing and office supplies		27		27
Directors and committee fees		44		44
Other real estate owned expense, net		191		13
FDIC deposit insurance expense		15		16
Other		175		148
Total noninterest expense		1,992		1,795
Income Before Income Taxes		(35)		618
Income tax (benefit) expense		(3)		183
Net (Loss) Income	$	(32)	$	435
Earnings per share, basic and diluted	$	(0.08)	$	1.04
Dividends Declared per Share	$	0.17	$	0.17

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