Great American Bancorp : 2021 Q4 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

January 19, 2022

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for the Year Ending December 31, 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 $398 thousand for the year ended December 31, 2021, which is a decrease of $833 thousand, or 67.7% from $1.231 million reported for the year ended December 31, 2020. Basic and fully diluted earnings per share were $0.97 for the year ended December 31, 2021 compared to $2.93 for the same period in 2020. The return on average assets ("ROA") and the return on average equity ("ROE") were 0.18% and 2.14% for the year ended December 31, 2021, decreasing from 0.64% ROA and 6.61% ROE for the same period in 2020.

Net interest income decreased $478 thousand in 2021 compared to 2020. Interest income from loans decreased $339 thousand in 2021 compared to 2020 due to a decrease in outstanding loans during the period. The yield on loans increased to 4.87% for 2021 from 4.78% for 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 $140 thousand in 2021 compared to 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 $208 thousand in 2021, from $4.174 million for 2020 to $3.966 million for 2021. The decrease in noninterest income is primarily due to the decrease in net gains on sales of loans offset by an increase in gain on sales of other real estate owned. Net gain on sales of loans decreased $655 thousand for 2021 compared to 2020 due to the Company selling $34.030 million in loans during 2021 compared to $51.835 million in loans during 2020. During 2021, the Company recognized $256 thousand in total gain on the sale of other real estate owned due to the rehabilitation of certain properties that the Company foreclosed on during 2020 and 2021 that were subsequently sold during 2021.

1

Total noninterest expense increased $526 thousand, from $7.218 million for 2020 to $7.744 million for 2021, primarily due to an increase in other real estate owned expense. Other real estate owned expense increased $480 thousand for 2021 compared to 2020 due to foreclosing on thirty-one1-4 family non-owner-occupied properties in March of 2021 and rehabilitating and maintaining the properties during 2021.

Net income for the three months ended December 31, 2021 was $81 thousand, which is a decrease of $146 thousand from $227 thousand reported for the same period in 2020 primarily due to a decrease in net gain on sales of loans and offset by an increase in net gain on sales of other real estate owned. Net gain on sales of loans decreased $434 thousand for the three months ending December 31, 2021 compared to the same period in 2020 due to the Company selling $6.345 million in loans during the fourth quarter of 2021 compared to $14.311 million in loans during the same period in 2020. The Company recognized $159 thousand in total gain on the sale of other real estate owned due to the rehabilitation of certain properties that were sold during the three months ending December 31, 2021.

Total assets at December 31, 2021 were $230.054 million compared to $203.659 million at December 31, 2020, increasing $26.395 million. Total net loans, including loans held for sale, were $87.565 million at December 31, 2021, decreasing $4.476 million or 4.9% from total net loans of $92.041 million at December 31, 2020. Total deposits increased $30.493 million, from $176.856 million at December 31, 2020 to $207.349 million at December 31, 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."

###

GTPS-pr-2022-01

2

GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Consolidated Balance Sheets

December 31, 2021 and 2020

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

		2021		2020
Assets
Cash and due from banks	$	4,356	$	5,567
Interest-bearing demand deposits		120,265		97,570
Cash and cash equivalents		124,621		103,137
Securities available for sale		52		70
Securities held to maturity		9,984		9
Federal Home Loan Bank stock, at cost		258		258
Loans held for sale		436		2,394
Loans, net of allowance for loan losses of 2021 - $867; 2020 - $990		87,129		89,647
Premises and equipment, net		4,041		4,131
Goodwill		485		485
Other real estate owned		689		752
Other assets		2,359		2,776
Total assets	$	230,054	$	203,659
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	50,277	$	41,845
Interest-bearing		157,072		135,011
Total deposits		207,349		176,856
Federal Home Loan Bank advances		-		4,000
Advances from borrowers for taxes and insurance		268		185
Other liabilities		3,852		3,995
Total liabilities		211,469		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		34,671		34,550
Accumulated other comprehensive (loss) income		(668)		(701)
Common stock in treasury, at cost (2021 -590,686 shares; 2020 -585,135 shares)		(18,738)		(18,546)
Total stockholders' equity		18,585		18,623
Total liabilities and stockholders' equity	$	230,054	$	203,659

3

GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Year Ended December 31, 2021 and 2020

(unaudited, in thousands, except share data)

		2021		2020
Interest and Dividend Income
Loans	$	4,299	$	4,638
Securities		3		3
Dividends on Federal Home Loan Bank stock		7		7
Deposits with financial institutions and other		143		283
Total interest and dividend income		4,452		4,931
Interest Expense
Deposits		68		69
Other		4		4
Total interest expense		72		73
Net Interest Income		4,380		4,858
Provision (Credit) for Loan Losses		-		50
Net Interest Income After Provision (Credit) for Loan Losses		4,380		4,808
Noninterest Income
Insurance sales commissions		1,601		1,604
Customer service fees		414		419
Other service charges and fees		388		356
Net gain on sales of loans		1,036		1,691
Loan servicing fees, net of amortization of mortgage servicing rights		65		(56)
Net gain (loss) on sales of other real estate owned		256		(8)
Other		206		168
Total noninterest income		3,966		4,174
Noninterest Expense
Salaries and employee benefits		4,262		4,306
Occupancy expense		598		618
Equipment expense		865		812
Professional fees		305		299
Marketing expense		160		151
Printing and office supplies		110		110
Directors and committee fees		176		176
Other real estate owned expense, net		563		83
FDIC deposit insurance expense		58		52
Other		647		611
Total noninterest expense		7,744		7,218
Income Before Income Taxes		602		1,764
Income tax expense		204		533
Net Income	$	398	$	1,231
Earnings per share, basic and diluted	$	0.97	$	2.93
Dividends Declared per Share	$	0.68	$	0.68

4

GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three Months Ended December 31, 2021 and 2020

(unaudited, in thousands, except share data)

		2021		2020
Interest and Dividend Income
Loans	$	1,015	$	1,074
Securities		2		-
Dividends on Federal Home Loan Bank stock		2		2
Deposits with financial institutions and other		42		23
Total interest and dividend income		1,061		1,099
Interest Expense
Deposits		16		16
Other		1		1
Total interest expense		17		17
Net Interest Income		1,044		1,082
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		1,044		1,082
Noninterest Income
Insurance sales commissions		311		290
Customer service fees		116		110
Other service charges and fees		97		95
Net gain on sales of loans		155		589
Loan servicing fees, net of amortization of mortgage servicing rights		18		(87)
Net gain (loss) on sales of other real estate owned		159		3
Other		47		31
Total noninterest income		903		1,031
Noninterest Expense
Salaries and employee benefits		1,017		1,037
Occupancy expense		142		151
Equipment expense		223		204
Professional fees		77		70
Marketing expense		51		21
Printing and office supplies		31		26
Directors and committee fees		44		44
Other real estate owned expense, net		57		59
FDIC deposit insurance expense		15		13
Other		156		153
Total noninterest expense		1,813		1,778
Income Before Income Taxes		134		335
Income tax (benefit) expense		53		108
Net (Loss) Income	$	81	$	227
Earnings per share, basic and diluted	$	0.20	$	0.55
Dividends Declared per Share	$	0.17	$	0.17

5