Great American Bancorp : 2022 Q3 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

October 18, 2022

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for the

Nine Months Ending September 30, 2022

Champaign, Illinois - Great American Bancorp, Inc. (OTC Pink®/GTPS), the holding company for First Federal Savings Bank of Champaign-Urbana, reported net income of $618 thousand for the nine months ended September 30, 2022, which is an increase of $301 thousand, or 95.0% from $317 thousand reported for the nine months ended September 30, 2021. Basic and fully diluted earnings per share were $1.52 for the nine months ended September 30, 2022 compared to $0.77 for the same period in 2021. The return on average assets ("ROA") and the return on average equity ("ROE") were 0.37% and 4.44% for the nine months ended September 30, 2022, increasing from 0.20% ROA and 2.28% ROE for the same period in 2021.

Interest income from loans decreased $419 thousand in the first nine months of 2022 compared to the same period in 2021 due to a $320 thousand decrease in interest income related to the Paycheck Protection Program loans. 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") increased $413 thousand in the first nine months of 2022 compared to the same period in 2021 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 3 to 3 ¼ percent at the end of September 2022. Interest on securities increased $474 thousand in the first nine months of 2022 compared to the same period in 2021 due the Company purchasing a total of $90 million United States Treasury bonds beginning in December 2021.

Noninterest income decreased $343 thousand in the first nine months of 2022 compared to the same period in 2021, from $3.063 million for 2021 to $2.720 million for 2022. 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 $483 thousand for the nine months ending September 30, 2022 compared to the same period in 2021 due to the Company selling $15.606 million in loans during the first nine months of 2022 compared to $27.685 million in loans during the same period in 2021.

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Total noninterest expense decreased $253 thousand, from $5.931 million for the nine months in 2021 to $5.678 million for the nine months in 2022, primarily due to a decrease in other real estate owned expense. Other real estate owned expense decreased $367 thousand for the nine months in 2022 compared to the same period in 2021 due to maintaining less other real estate properties during 2022 compared to the same period in 2021. The Company sold thirty-three properties during the period of June 30, 2021 to September 30, 2022 and currently has six properties remaining.

Net income for the three months ended September 30, 2022 was $380 thousand, which is an increase of $412 thousand from a net loss of $32 thousand reported for the same period in 2021. The return on average assets ("ROA") and the return on average equity ("ROE") were 0.69% and 8.03% for the three months ended September 30, 2022, increasing from -0.06% ROA and -0.68% ROE for the same period in 2021.

Total assets at September 30, 2022 were $222.549 million compared to $230.054 million at December 31, 2021, decreasing $7.505 million. Total net loans, including loans held for sale, were $92.973 million at September 30, 2022, increasing $5.408 million or 6.18% from total net loans of $87.565 million at December 31, 2021. Total deposits decreased $7.511 million, from $207.349 million at December 31, 2021 to $199.838 million at September 30, 2022.

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-2022-05

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Consolidated Balance Sheets

September 30, 2022 and December 31, 2021

(unaudited except amounts reported as of December 31, 2021; in thousands, except share data)

		2022		2021
Assets
Cash and due from banks	$	8,520	$	4,356
Interest-bearing demand deposits		24,655		120,265
Cash and cash equivalents		33,175		124,621
Securities available for sale		30		52
Securities held to maturity		88,696		9,984
Federal Home Loan Bank stock, at cost		258		258
Loans held for sale		118		436
Loans, net of allowance for loan losses of 2022 - $862; 2021 - $867		92,855		87,129
Premises and equipment, net		3,933		4,041
Goodwill		485		485
Other real estate owned		407		689
Other assets		2,592		2,359
Total assets	$	222,549	$	230,054
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	54,072	$	50,277
Interest-bearing		145,766		157,072
Total deposits		199,838		207,349
Advances from borrowers for taxes and insurance		54		268
Other liabilities		3,856		3,852
Total liabilities		203,748		211,469
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		35,080		34,671
Accumulated other comprehensive (loss) income		(668)		(668)
Common stock in treasury, at cost (2022 -596,486 shares; 2021 -590,686 shares)		(18,931)		(18,738)
Total stockholders' equity		18,801		18,585
Total liabilities and stockholders' equity	$	222,549	$	230,054

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Nine Months Ended September 30, 2022 and 2021

(unaudited, in thousands, except share data)

	2022			2021
Interest and Dividend Income
Loans	$	2,865	$	3,284
Securities		475		1
Dividends on Federal Home Loan Bank stock		4		5
Deposits with financial institutions and other		514		101
Total interest and dividend income		3,858		3,391
Interest Expense
Deposits		48		52
Other		3		3
Total interest expense		51		55
Net Interest Income		3,807		3,336
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		3,807		3,336
Noninterest Income
Insurance sales commissions		1,362		1,290
Customer service fees		361		298
Other service charges and fees		265		291
Net gain on sales of loans		398		881
Loan servicing fees, net of amortization of mortgage servicing rights		83		47
Net gain on sales of other real estate owned		92		97
Other		159		159
Total noninterest income		2,720		3,063
Noninterest Expense
Salaries and employee benefits		3,244		3,245
Occupancy expense		452		456
Equipment expense		685		642
Professional fees		237		228
Marketing expense		145		109
Printing and office supplies		96		79
Directors and committee fees		132		132
Other real estate owned expense, net		139		506
FDIC deposit insurance expense		46		43
Other		502		491
Total noninterest expense		5,678		5,931
Income Before Income Taxes		849		468
Income tax expense		231		151
Net Income	$	618	$	317
Earnings per share, basic and diluted	$	1.52	$	0.77
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, 2022 and 2021

(unaudited, in thousands, except share data)

		2022		2021
Interest and Dividend Income
Loans	$	975	$	1,058
Securities		305		-
Dividends on Federal Home Loan Bank stock		1		1
Deposits with financial institutions and other		292		43
Total interest and dividend income		1,573		1,102
Interest Expense
Deposits		16		17
Other		1		1
Total interest expense		17		18
Net Interest Income		1,556		1,084
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		1,556		1,084
Noninterest Income
Insurance sales commissions		424		430
Customer service fees		124		112
Other service charges and fees		88		97
Net gain on sales of loans		124		146
Loan servicing fees, net of amortization of mortgage servicing rights		30		17
Net gain on sales of other real estate owned		59		11
Other		42		60
Total noninterest income		891		873
Noninterest Expense
Salaries and employee benefits		1,096		1,068
Occupancy expense		162		150
Equipment expense		240		221
Professional fees		84		70
Marketing expense		49		31
Printing and office supplies		32		27
Directors and committee fees		44		44
Other real estate owned expense, net		41		191
FDIC deposit insurance expense		15		15
Other		172		175
Total noninterest expense		1,935		1,992
Income Before Income Taxes		512		(35)
Income tax expense		132		(3)
Net Income (loss)	$	380	$	(32)
Earnings per share, basic and diluted	$	0.94	$	(0.08)
Dividends Declared per Share	$	0.17	$	0.17

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