Great American Bancorp : 2023 Q3 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

October 17, 2023

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for the

Nine Months Ending September 30, 2023

Champaign, Illinois - Great American Bancorp, Inc. (OTC Pink®/GTPS), the holding company for First Federal Savings Bank of Champaign-Urbana, reported net income of $1.814 million for the nine months ended September 30, 2023, which is an increase of $1.196 million, or 193.5% from $618 thousand reported for the nine months ended September 30, 2022. Basic and fully diluted earnings per share were $4.57 for the nine months ended September 30, 2023 compared to $1.52 for the same period in 2022. The return on average assets ("ROA") and the return on average equity ("ROE") were 1.17% and 12.04% for the nine months ended September 30, 2023, increasing from 0.37% ROA and 4.44% ROE for the same period in 2022.

Interest income from loans increased $565 thousand in 2023 compared to 2022 primarily due to the rising interest rate environment. The Prime Rate, which is the primary underlying rate for the Company's adjustable-rate loans, increased from 3.25% as of January 1, 2022 to 8.50% as of September 30, 2023. 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 $440 thousand in 2023 compared to 2022 due to the Federal Open Market Committee increasing the Federal funds target rate range from 0 to 1/4 percent as of January 1, 2022 to 5¼ to 5

• as of September 30, 2023. Interest on securities increased $1.220 million in 2023 compared to 2022 due the Company increasing its investments in United State Treasuries from an average balance for the nine months ending September 30, 2022 of $40.899 million to $78.982 million for the nine months ending September 30, 2023.

Noninterest income decreased $208 thousand in 2023 compared to 2022, from $2.720 million for the nine months ending September 30, 2022 to $2.512 million for the same period in 2023. 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 $291 thousand for 2023 compared to 2022 due to the Company selling $3.899 million of loans during 2023 compared to $15.606 million of loans during 2022.

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Total noninterest expense increased $439 thousand, from $5.678 million for the nine months ending September 30, 2022 to $6.117 million for the same period in 2023, primarily due to an increase in salaries and employee benefits.

Net income for the three months ended September 30, 2023 was $651 thousand, which is an increase of $271 thousand from $380 thousand reported for the same period in 2022. The return on average assets ("ROA") and the return on average equity ("ROE") were 1.32% and 12.53% for the three months ended September 30, 2023, increasing from 0.69% ROA and 7.99% ROE for the same period in 2022.

Total assets at September 30, 2023 were $192.626 million compared to $218.874 million at December 31, 2022, a decrease of $26.248 million. Total net loans, including loans held for sale, were $95.399 million at September 30, 2023, increasing $3.252 million or 3.53% from total net loans of $92.147 million at December 31, 2022. Total deposits decreased $27.689 million, from $196.039 million at December 31, 2022 to $168.350 million at September 30, 2023.

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-2023-05

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Consolidated Balance Sheets

September 30, 2023 and December 31, 2022

(unaudited except amounts reported as of December 31, 2022; in thousands, except share data)

		2023		2022
Assets
Cash and due from banks	$	3,835	$	4,477
Interest-bearing demand deposits		21,026		25,960
Cash and cash equivalents		24,861		30,437
Securities available for sale		18		21
Securities held to maturity		65,116		89,094
Federal Home Loan Bank stock, at cost		258		258
Loans held for sale		-		-
Loans, net of allowance for loan losses of 2023 - $970; 2022 - $861		95,399		92,147
Premises and equipment, net		4,072		3,842
Goodwill		485		485
Other real estate owned		70		323
Other assets		2,347		2,267
Total assets	$	192,626	$	218,874
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	48,026	$	50,742
Interest-bearing		120,324		145,297
Total deposits		168,350		196,039
Advances from borrowers for taxes and insurance		107		229
Other liabilities		3,304		3,038
Total liabilities		171,761		199,306
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		37,035		35,494
Accumulated other comprehensive loss		(199)		(199)
Common stock in treasury, at cost (2023 - 607,215 shares; 2022 -600,011 shares)		(19,291)		(19,047)
Total stockholders' equity		20,865		19,568
Total liabilities and stockholders' equity	$	192,626	$	218,874

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Nine Months Ended September 30, 2023 and 2022

(unaudited, in thousands, except share data)

		2023		2022
Interest and Dividend Income
Loans	$	3,430	$	2,865
Securities		1,695		475
Dividends on Federal Home Loan Bank stock		7		4
Deposits with financial institutions and other		954		514
Total interest and dividend income		6,086		3,858
Interest Expense
Deposits		38		48
Other		3		3
Total interest expense		41		51
Net Interest Income		6,045		3,807
Provision (Credit) for Loan Losses		40		-
Net Interest Income After Provision (Credit) for Loan Losses		6,005		3,807
Noninterest Income
Insurance sales commissions		1,420		1,362
Customer service fees		358		361
Other service charges and fees		256		265
Net gain on sales of loans		107		398
Loan servicing fees, net of amortization of mortgage servicing rights		58		83
Net gain on sales of other real estate owned		116		92
Other		197		159
Total noninterest income		2,512		2,720
Noninterest Expense
Salaries and employee benefits		3,484		3,244
Occupancy expense		470		452
Equipment expense		666		685
Professional fees		196		237
Marketing expense		171		145
Printing and office supplies		103		96
Directors and committee fees		132		132
Other real estate owned expense, net		175		139
FDIC deposit insurance expense		72		46
Other		648		502
Total noninterest expense		6,117		5,678
Income Before Income Taxes		2,400		849
Income tax expense		586		231
Net Income	$	1,814	$	618
Earnings per share, basic and diluted	$	4.57	$	1.52
Dividends Declared per Share	$	0.57	$	0.51

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three Months Ended September 30, 2023 and 2022

(unaudited, in thousands, except share data)

		2023		2022
Interest and Dividend Income
Loans	$	1,212	$	975
Securities		606		305
Dividends on Federal Home Loan Bank stock		3		1
Deposits with financial institutions and other		273		292
Total interest and dividend income		2,094		1,573
Interest Expense
Deposits		12		16
Other		1		1
Total interest expense		13		17
Net Interest Income		2,081		1,556
Provision (Credit) for Loan Losses		40		-
Net Interest Income After Provision (Credit) for Loan Losses		2,041		1,556
Noninterest Income
Insurance sales commissions		467		424
Customer service fees		127		124
Other service charges and fees		86		88
Net gain on sales of loans		7		124
Loan servicing fees, net of amortization of mortgage servicing rights		16		30
Net gain on sales of other real estate owned		64		59
Other		69		42
Total noninterest income		836		891
Noninterest Expense
Salaries and employee benefits		1,177		1,096
Occupancy expense		162		162
Equipment expense		227		240
Professional fees		62		84
Marketing expense		54		49
Printing and office supplies		34		32
Directors and committee fees		44		44
Other real estate owned expense, net		5		41
FDIC deposit insurance expense		23		15
Other		231		172
Total noninterest expense		2,019		1,935
Income Before Income Taxes		858		512
Income tax expense		207		132
Net Income	$	651	$	380
Earnings per share, basic and diluted	$	1.65	$	0.94
Dividends Declared per Share	$	0.20	$	0.17

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