Great American Bancorp : 2024 Q1 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

April 16, 2024

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for First Quarter 2024

Champaign, Illinois - Great American Bancorp, Inc. (OTC Pink®/GTPS), the holding company for First Federal Savings Bank of Champaign-Urbana (the "Bank"), reported net income of $923 thousand for the three months ended March 31, 2024, an increase of $392 thousand, from $531 thousand reported for the three months ended March 31, 2023. Basic and fully diluted earnings per share were $2.39 for the three months ended March 31, 2024 compared to $1.33 for the same period in 2023. The return on average assets ("ROA") and the return on average equity ("ROE") were 1.90% and 17.17%, respectively, for the three months ended March 31, 2024, compared to 0.99% and 10.93%, respectively, for the three months ended March 31, 2023.

Net interest income increased $602 thousand in the first quarter of 2024 compared to the same period in 2023. Interest income from loans increased $320 thousand in the first three months of 2024 compared to the same period in 2023 due to an increase in loans and increase in yield. The yield of loans was 5.91% for the first quarter of 2024, increasing from 4.73% for the same period in 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 ("FHLB"), increased $341 thousand in the first quarter of 2024 compared to the same period in

2023 due to the Federal Open Market Committee ("FOMC") increasing the Federal funds target rate range from 4 ¼ to 4 ½ percent in March 2023 to 5 ¼ to 5 ½ percent by the end of July 2023 and remaining at 5 ¼ to 5 ½ percent through March 2024.

Noninterest income remained flat in the first quarter of 2024 compared to the first quarter of 2023.

Total noninterest expense remained flat for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. Salaries and employee benefits increased $47 thousand, from $1,171 thousand for the first three months ended March 31, 2023 compared to $1,218 thousand for the three months ended March 31, 2024, primarily due to increasing employee costs. Other real estate owned expense decreased $94 thousand, from $95 thousand for the first quarter of 2023 compared

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to $1 thousand for the first quarter of 2024, due to the reduction in the properties held in other real estate owned.

Total assets at March 31, 2024 were $199.558 million compared to $191.281 million at December 31, 2023, increasing $8.277 million. Total net loans, including loans held for sale, were $97.524 million at March 31, 2024, increasing $3.892 million from total net loans of $93.632 million at December 31, 2023. Total deposits increased $6.610 million, from $166.615 million at December 31, 2023 to $173.225 million at March 31, 2024.

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-2024-03

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Balance Sheets

March 31, 2024 and December 31, 2023

(unaudited except amounts reported as of December 31, 2023; in thousands, except share data)

		2024		2023
Assets
Cash and due from banks	$	3,119	$	4,195
Interest-bearing demand deposits		46,556		35,864
Cash and cash equivalents		49,675		40,059
Securities available for sale		16		18
Securities held to maturity		45,053		50,488
Federal Home Loan Bank stock, at cost		258		258
Loans held for sale		95		-
Loans, net of allowance for loan losses of 2024 - $967; 2023 - $928		97,429		93,632
Premises and equipment, net		4,085		4,129
Goodwill		485		485
Other real estate owned		40		40
Other assets		2,422		2,172
Total assets	$	199,558	$	191,281
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	53,834	$	46,784
Interest-bearing		119,391		119,831
Total deposits		173,225		166,615
Advances from borrowers for taxes and insurance		704		337
Other liabilities		3,425		2,971
Total liabilities		177,354		169,923
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		38,462		37,616
Accumulated other comprehensive loss		(78)		(78)
Common stock in treasury, at cost (2024 - 613,315 shares; 2023 - 613,315 shares)		(19,500)		(19,500)
Total stockholders' equity		22,204		21,358
Total liabilities and stockholders' equity	$	199,558	$	191,281

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Year Ended March 31, 2024 and 2023

(unaudited, in thousands, except share data)

Interest and Dividend Income		2024		2023
$	1,398
Loans	$	1,078
Securities		483		546
Dividends on Federal Home Loan Bank stock		3		2
Deposits with financial institutions and other		644		303
Total interest and dividend income		2,528		1,929
Interest Expense		11
Deposits			14
Other		1		1
Total interest expense		12		15
Net Interest Income		2,516		1,914
Provision (Credit) for Loan Losses		40		-
Net Interest Income After Provision (Credit) for Loan Losses		2,476		1,914
Noninterest Income		541
Insurance sales commissions			539
Customer service fees		123		110
Other service charges and fees		80		85
Net gain on sales of loans		30		45
Loan servicing fees, net of amortization of mortgage servicing rights		13		26
Net gain on sales of other real estate owned		-		8
Other		59		41
Total noninterest income		846		854
Noninterest Expense		1,218
Salaries and employee benefits			1,171
Occupancy expense		163		146
Equipment expense		222		229
Professional fees		80		72
Marketing expense		50		55
Printing and office supplies		26		33
Directors and committee fees		44		44
Other real estate owned expense, net		1		95
FDIC deposit insurance expense		22		15
Other		246		210
Total noninterest expense		2,072		2,070
Income Before Income Taxes		1,250		698
Income tax expense		327		167
Net Income	$	923	$	531
Earnings per share, basic and diluted	$	2.39	$	1.33
Dividends Declared per Share	$	0.20	$	0.17

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Selected Financial Data

(unaudited, in thousands, except share data)
		As of		As of
		March 31,		December 31,
		2024		2023
Total assets	$	199,558	$	191,281
Total loans, net		97,524		93,632
Loan loss reserve		967		928
Non-performing loans		96		100
Non-performing loans to total assets		0.05%		0.05%
Allowance for loan losses to total loans		0.98%		0.98%
Allowance for loan losses to total assets		0.48%		0.49%
Other real estate owned		40		40
Investment securities		45,069		50,506
Total deposits		173,225		166,615
Checking deposits		103,563		97,453
Money market deposits		18,274		18,914
Savings deposits		43,555		42,210
Certificates of deposit		7,833		8,038
Total stockholders' equity		22,204		21,358
		Three Months		Three Months
		Ended		Ended
		March 31, 2024		March 31, 2023
Net interest margin (annualized)		5.49%		3.74%
Return on average assets (annualized)		1.90%		0.99%
Return on average equity (annualized)		17.17%		10.93%

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