Great American Bancorp : 2022 Q4 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

January 18, 2023

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for the

Year Ending December 31, 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 $1.098 million for the year ended December 31, 2022, which is an increase of $700 thousand, or 175.8% from $398 thousand reported for the year ended December 31, 2021. Basic and fully diluted earnings per share were $2.71 for the year ended December 31, 2022 compared to $0.97 for the same period in 2021. The return on average assets ("ROA") and the return on average equity ("ROE") were 0.49% and 5.88% for the year ended December 31, 2022, increasing from 0.18% ROA and 2.14% ROE for the same period in 2021.

Interest income from loans decreased $400 thousand in 2022 compared to 2021 due to a $407 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, increased $612 thousand in 2022 compared to 2021 due to the Federal Open Market Committee increasing the Federal funds target rate range from 0 to 1/4 percent in March 2022 to 4 ¼ to 4 ½ percent by the end of December 2022. Interest on securities increased $1.019 million in 2022 compared to 2021 due the Company purchasing a total of $90 million par value United States Treasury bonds beginning in December 2021.

Noninterest income decreased $609 thousand in 2022 compared to 2021, from $3.966 million for 2021 to $3.357 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 $598 thousand for 2022 compared to 2021 due to the Company selling $16.918 million in loans during 2022 compared to $34.030 million in loans during 2021.

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Total noninterest expense decreased $264 thousand, from $7.744 million for 2021 to $7.480 million for 2022, primarily due to a decrease in other real estate owned expense. Other real estate owned expense decreased $420 thousand in 2022 compared to 2021 due to maintaining less other real estate properties during 2022 compared to 2021. The Company had ten other real estate owned properties as of December 31, 2020 and took possession of an additional thirty-two properties in March 2021. As of December 31, 2022 and 2021, the Company had possession of five and ten properties, respectively.

Net income for the three months ended December 31, 2022 was $480 thousand, which is an increase of $399 thousand from $81 thousand reported for the same period in 2021. The return on average assets ("ROA") and the return on average equity ("ROE") were 0.87% and 10.10% for the three months ended December 31, 2022, increasing from 0.15% ROA and 1.74% ROE for the same period in 2021.

Total assets at December 31, 2022 were $218.874 million compared to $230.054 million at December 31, 2021, a decrease of $11.180 million. Total net loans, including loans held for sale, were $92.147 million at December 31, 2022, increasing $4.582 million or 5.23% from total net loans of $87.565 million at December 31, 2021. Total deposits decreased $11.310 million, from $207.349 million at December 31, 2021 to $196.039 million at December 31, 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-2023-02

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Consolidated Balance Sheets

December 31, 2022 and 2021

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

		2022		2021
Assets
Cash and due from banks	$	4,477	$	4,356
Interest-bearing demand deposits		25,960		120,265
Cash and cash equivalents		30,437		124,621
Securities available for sale		21		52
Securities held to maturity		89,094		9,984
Federal Home Loan Bank stock, at cost		258		258
Loans held for sale		-		436
Loans, net of allowance for loan losses of 2022 - $861; 2021 - $867		92,147		87,129
Premises and equipment, net		3,842		4,041
Goodwill		485		485
Other real estate owned		323		689
Other assets		2,267		2,359
Total assets	$	218,874	$	230,054
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	50,742	$	50,277
Interest-bearing		145,297		157,072
Total deposits		196,039		207,349
Advances from borrowers for taxes and insurance		229		268
Other liabilities		3,038		3,852
Total liabilities		199,306		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		35,494		34,671
Accumulated other comprehensive (loss) income		(199)		(668)
Common stock in treasury, at cost (2022 - 600,011 shares; 2021 -590,686 shares)		(19,047)		(18,738)
Total stockholders' equity		19,568		18,585
Total liabilities and stockholders' equity	$	218,874	$	230,054

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Year Ended December 31, 2022 and 2021

(unaudited, in thousands, except share data)

		2022		2021
Interest and Dividend Income
Loans	$	3,899	$	4,299
Securities		1,022		3
Dividends on Federal Home Loan Bank stock		6		7
Deposits with financial institutions and other		755		143
Total interest and dividend income		5,682		4,452
Interest Expense
Deposits		64		68
Other		4		4
Total interest expense		68		72
Net Interest Income		5,614		4,380
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		5,614		4,380
Noninterest Income
Insurance sales commissions		1,682		1,601
Customer service fees		490		414
Other service charges and fees		351		388
Net gain on sales of loans		438		1,036
Loan servicing fees, net of amortization of mortgage servicing rights		118		65
Net gain on sales of other real estate owned		79		256
Other		199		206
Total noninterest income		3,357		3,966
Noninterest Expense
Salaries and employee benefits		4,299		4,262
Occupancy expense		597		598
Equipment expense		896		865
Professional fees		309		305
Marketing expense		192		160
Printing and office supplies		129		110
Directors and committee fees		176		176
Other real estate owned expense, net		143		563
FDIC deposit insurance expense		61		58
Other		678		647
Total noninterest expense		7,480		7,744
Income Before Income Taxes		1,491		602
Income tax expense		393		204
Net Income	$	1,098	$	398
Earnings per share, basic and diluted	$	2.71	$	0.97
Dividends Declared per Share	$	0.68	$	0.68

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three Months Ended December 31, 2022 and 2021

(unaudited, in thousands, except share data)

		2022		2021
Interest and Dividend Income
Loans	$	1,034	$	1,015
Securities		547		2
Dividends on Federal Home Loan Bank stock		2		2
Deposits with financial institutions and other		241		42
Total interest and dividend income		1,824		1,061
Interest Expense
Deposits		16		16
Other		1		1
Total interest expense		17		17
Net Interest Income		1,807		1,044
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		1,807		1,044
Noninterest Income
Insurance sales commissions		320		311
Customer service fees		129		116
Other service charges and fees		86		97
Net gain on sales of loans		40		155
Loan servicing fees, net of amortization of mortgage servicing rights		35		18
Net gain on sales of other real estate owned		(13)		159
Other		40		47
Total noninterest income		637		903
Noninterest Expense
Salaries and employee benefits		1,055		1,017
Occupancy expense		145		142
Equipment expense		211		223
Professional fees		72		77
Marketing expense		47		51
Printing and office supplies		33		31
Directors and committee fees		44		44
Other real estate owned expense, net		4		57
FDIC deposit insurance expense		15		15
Other		176		156
Total noninterest expense		1,802		1,813
Income Before Income Taxes		642		134
Income tax expense		162		53
Net Income (loss)	$	480	$	81
Earnings per share, basic and diluted	$	1.19	$	0.20
Dividends Declared per Share	$	0.17	$	0.17

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