UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 13, 2004
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GREAT AMERICAN BANCORP, INC.
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(Exact name of registrant as specified in its charter)
Delaware 000-25808 52-1923366
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification Number)
1311 S. Neil St., P.O. Box 1010, Champaign, IL 61824-1010
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (217) 356-2265
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Item 7. Financial Statements and Exhibits
The Registrant incorporates by reference the press release dated July 13,
2004 attached as Exhibit 99.1, relating to the Company's announcement of
unaudited results for the three months and six months ended June 30, 2004.
Item 12. Results of Operations and Financial Condition
The Registrant incorporates by reference the press release dated July 13,
2004 attached as Exhibit 99.1, relating to the Company's announcement of
unaudited results for the three months and six months ended June 30, 2004.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Great American Bancorp, Inc.
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(Registrant)
Date July 13, 2004 /s/ Jane F. Adams
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Chief Financial Officer
EXHIBIT INDEX
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Exhibit
No. Description Method of Filing
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99.1 News Release Filed herewith
Dated July 13, 2004
Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
July 13, 2004
Contact: Ms. Jane F. Adams
Chief Financial Officer and Investor Relations
(217) 356-2265
GREAT AMERICAN BANCORP, INC.
UNAUDITED RESULTS SECOND QUARTER 2004 - YEAR-TO-DATE NET INCOME OF $622,000
Champaign, Illinois - Great American Bancorp, Inc. (Nasdaq SmallCap/GTPS), the
holding company for First Federal Savings Bank of Champaign-Urbana, reported
net income of $622,000 for the six months ended June 30, 2004, a decrease of
$286,000 or 31.5%, from $908,000 reported for the six months ended June 30,
2003. Basic earnings per share were $0.83 for the six months ended June 30,
2004, compared to $1.18 for the six months ended June 30, 2003, while fully
diluted earnings per share were $0.77 for the six months ended June 30, 2004
and $1.06 for the six months ended June 30, 2003.
Net income declined in 2004 primarily due to lower net interest income and
noninterest income, offset by a reduction in income taxes due to lower pretax
earnings. Noninterest expense was only slightly higher in 2004.
Net interest income was $2,723,000 for the six months ended June 30, 2004;
decreasing $218,000, or 7.4%, from $2,941,000 reported for the six months
ended June 30, 2003. Net interest income declined in 2004 mainly due to lower
interest income from loans, which resulted from a reduction in total loan
balances from 2003 levels and a decrease in average loan yields. Total net
loans averaged $105.19 million during the six months ended June 30, 2004
compared to $115.55 million during the same period in 2003. Total average
loans declined partly as a result of residential mortgage loans sold to the
secondary market during the second and third quarters of 2003. Also, the
Company experienced payoffs in the multifamily and commercial mortgage loan
categories during the latter half of 2003. The average yield on net loans
declined from 7.42% for the six months ended June 30, 2003 to 6.73% for the
six months ended June 30, 2004.
The decline in net interest income due to lower loan interest was partially
offset by a decrease in interest expense on deposits and Federal Home Loan
Bank ("FHLB") advances. Interest expense on deposits declined primarily as a
result of a decrease in total certificates of deposit. Total certificates of
deposit averaged $51.19 million for the six months ended June 30, 2004, down
from $59.99 million for the six months ended June 30, 2003. Since the Company
maintained significant levels of cash and short-term investments during 2004,
which were mainly generated from residential loan sales during 2003, the
Company did not actively promote certificates of deposit during the first six
months of 2004. The Company also maintained lower balances of FHLB advances
during 2004 compared to balances maintained in 2003.
The Company recorded no provision for loan losses for the six month periods
ended June 30, 2004 and June 30, 2003. Management's analyses of the allowance
for loan losses during both 2004 and 2003 determined that no additional
allocation to the allowance was warranted.
Noninterest income totaled $1,645,000 for the six months ended June 30, 2004,
$209,000, or 11.3%, lower than the $1,854,000 recorded for the six months
ended June 30, 2003. This decrease was mostly due to lower net gains from
loan sales, offset by higher insurance sales commissions. Total net gains on
loan sales totaled $14,000 for the first six months of 2004 compared to
$552,000 for the first six months of 2003. The Company sold $732,000 in loans
during the first six months of 2004 compared to $22.23 million in loan sales
for the first six months of 2003. In October 2003, the Company suspended a
strategy of selling the majority of new and refinanced one-to-four-family
fixed rate residential mortgage loans to the secondary market. This strategy
was implemented in July 2001. The mortgage loans sold in 2004 were sold
according to a management strategy implemented in the first quarter of 2004 to
sell lower rate 30-year fixed-rate home mortgage loans. Insurance sales
commissions increased $293,000 or 36.6%, from $801,000 for the six months
ended June 30, 2003 to $1,094,000 for the six months ended June 30, 2004.
This increase was mainly due to growth in new commercial and group life and
health insurance customers and an increase in contingent commissions which are
commissions paid by an insurance company based on the overall profit and/or
volume of business placed with that insurance company.
Noninterest expense was $3,350,000 for the six months ended June 30, 2004,
$48,000, or 1.5%, higher than the $3,302,000 reported for the six months ended
June 30, 2003. Noninterest expense categories which were higher in 2004
included salaries and employee benefits expense, equipment expense, and
professional fees.
Income tax expense was $396,000 for the first six months of 2004 compared to
$585,000 for the first six months of 2003, declining $189,000, or 32.3%. This
decrease was due to lower pretax earnings. The effective tax rates for the
six months ended June 30, 2004 and 2003 were 38.9% and 39.2% respectively.
Net income for the second quarter of 2004 was $271,000, $172,000 or 38.8% less
than net income recorded of $443,000 for the second quarter of 2003. Net
interest income for the second quarter of 2004 was $1,410,000 compared to
$1,450,000 for the second quarter of 2003. The Company recorded no provision
for loan losses for the second quarter of 2004 or 2003. Noninterest income
was $712,000 for the second quarter of 2004 and $958,000 for the second
quarter of 2003. This decrease is attributable to net gains on residential
loan sales, which were $291,000 lower in the second quarter of 2004.
Noninterest expense was $1,676,000 for the second quarter of 2004, slightly
lower than the $1,678,000 reported for the second quarter of 2003.
Total assets at June 30, 2004 were $157.26 million, compared to $159.45
million at December 31, 2003. The decline occurred primarily in cash and cash
equivalents, which decreased from $44.06 million at December 31, 2003 to
$30.00 million at June 30, 2004. Total net loans increased $12.41 million, or
12.3%, from $100.77 million at December 31, 2003 to $113.18 million at June
30, 2004, due mainly to increases in residential mortgage loans. Total
deposits decreased $1.59 million, from $126.66 million at December 31, 2003 to
$125.07 million at June 30, 2004.
First Federal Savings Bank of Champaign-Urbana is head quartered in Champaign,
Illinois, and operates through its administrative/branch office in Champaign
and through two other full service branches located in Champaign and Urbana.
The Bank also provides full service brokerage activities through a third-party
broker-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 the NASDAQ SmallCap Market
System under the symbol "GTPS."
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GTPS-pr-2004-0
Great American Bancorp, Inc.
Consolidated Balance Sheets
June 30, 2004 and December 31, 2003
(in thousands, except share data)
June 30, 2004 Dec. 31, 2003
(Unaudited)
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Assets
Cash and due from banks $ 4,056 $ 4,388
Interest-bearing demand deposits 5,942 9,674
Federal Home Loan Bank term deposit 20,000 30,000
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Cash and cash equivalents 29,998 44,062
Available-for-sale securities 3,554 4,200
Held-to-maturity securities 387 532
Loans, net of allowance for loan
losses of $1,202 and $1,190 113,183 100,772
Premises and equipment 6,111 6,299
Federal Home Loan Bank stock 1,366 1,324
Other assets 2,662 2,261
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Total assets $ 157,261 $ 159,450
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Liabilities and Stockholders' Equity
Liabilities
Deposits
Demand $ 13,223 $ 13,008
Savings, NOW and money market 62,498 59,945
Time 49,350 53,711
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Total deposits 125,071 126,664
Federal Home Loan Bank advances 13,000 13,000
Other liabilities 2,219 2,150
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Total liabilities 140,290 141,814
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Commitments and Contingent Liabilities
Stockholders' Equity
Preferred stock, $0.01 par value
Authorized and unissued -
1,000,000 shares -- --
Common stock, $0.01 par value
Authorized -- 7,000,000 shares
Issued -- 2,052,750 shares
Outstanding: 735,003 and 756,003 shares 21 21
Additional paid-in-capital 20,636 20,412
Retained earnings 20,966 20,508
Unearned incentive plan shares (61) (63)
Accumulated other comprehensive income (45) 20
Treasury stock, at cost, - 1,317,747 and
1,296,747 shares (24,546) (23,262)
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Total stockholders' equity 16,971 17,636
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Total liabilities and
stockholders' equity $ 157,261 $ 159,450
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Great American Bancorp, Inc.
Consolidated Statements of Income
For the Six Months Ended June 30, 2004 and June 30, 2003
(unaudited, in thousands, except share data)
Six Months Ended Six Months Ended
June 30, 2004 June 30, 2003
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Interest Income:
Loans $ 3,519 $ 4,252
Securities 94 34
Dividends on Federal Home Loan Bank stock 41 36
Deposits with financial institutions
and other 154 208
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Total interest income 3,808 4,530
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Interest Expense:
Deposits 793 1,272
Federal Home Loan Bank advances 281 304
Other 11 13
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Total interest expense 1,085 1,589
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Net Interest Income 2,723 2,941
Provision for Loan Losses -- --
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Net Interest Income After
Provision for Loan Losses 2,723 2,941
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Noninterest Income:
Insurance sales commissions 1,094 801
Customer service fees 263 277
Other service charges and fees 119 119
Net gains on loan sales 14 552
Loan servicing fees 85 55
Other 70 50
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Total noninterest income 1,645 1,854
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Noninterest Expense:
Salaries and employee benefits 1,978 1,853
Net occupancy expense 279 283
Equipment expense 319 247
Professional fees 154 127
Marketing expense 86 123
Printing and office supplies 138 152
Directors and committee fees 69 73
Amortization of mortgage servicing rights 47 111
Other 280 333
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Total noninterest expense 3,350 3,302
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Income Before Income Taxes 1,018 1,493
Provision for Income Taxes 396 585
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Net income $ 622 $ 908
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Basic Earnings per Share $ 0.83 $ 1.18
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Diluted Earnings per Share $ 0.77 $ 1.06
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Great American Bancorp, Inc.
Consolidated Statements of Income
For the Three Months Ended June 30, 2004 and June 30, 2003
(unaudited, in thousands, except share data)
Quarter Ended Quarter Ended
June 30, 2004 June 30, 2003
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Interest Income:
Loans $ 1,804 $ 2,044
Securities 44 15
Dividends on Federal Home Loan Bank stock 20 21
Deposits with financial institutions
and other 71 121
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Total interest income 1,939 2,201
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Interest Expense:
Deposits 383 595
Federal Home Loan Bank advances 140 150
Other 6 6
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Total interest expense 529 751
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Net Interest Income 1,410 1,450
Provision for Loan Losses -- --
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Net Interest Income After
Provision for Loan Losses 1,410 1,450
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Noninterest Income:
Insurance sales commissions 423 395
Customer service fees 139 151
Other service charges and fees 61 59
Net gains on loan sales 2 293
Loan servicing fees 44 30
Other 43 30
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Total noninterest income 712 958
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Noninterest Expense:
Salaries and employee benefits 965 945
Net occupancy expense 141 142
Equipment expense 171 125
Professional fees 92 54
Marketing expense 46 71
Printing and office supplies 66 75
Directors and committee fees 35 36
Amortization of mortgage servicing rights 22 66
Other 138 164
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Total noninterest expense 1,676 1,678
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Income Before Income Taxes 446 730
Provision for Income Taxes 175 287
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Net income $ 271 $ 443
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Basic Earnings per Share $ 0.37 $ 0.58
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Diluted Earnings per Share $ 0.34 $ 0.52
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Great American Bancorp, Inc.
Selected Financial Data
(unaudited, in thousands, except per share data)
As of As of
June 30, 2004 Dec. 31, 2003
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Total assets $ 157,261 $ 159,450
Total loans, net 113,183 100,772
Loan loss reserve 1,202 1,190
Non-performing assets 62 4
Non-performing assets to total assets 0.04% 0.00%
Allowance for loan losses to total assets 0.76% 0.75%
Investment securities 3,941 4,732
Total deposits 125,071 126,664
Checking deposits 36,075 35,218
Money market deposits 19,129 18,991
Passbook savings deposits 20,517 18,744
Certificates of deposit 49,350 53,711
Federal Home Loan Bank advances 13,000 13,000
Total stockholders' equity 16,971 17,636
Three Months Ended Six Months Ended
June June June June
2004 2003 2004 2003
(unaudited) (unaudited)
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Net interest margin (annualized) 3.92% 3.76% 3.78% 3.84%
ROA (annualized) 0.69% 1.05% 0.79% 1.09%
ROE (annualized) 6.34% 10.03% 7.19% 10.20%