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) October 19, 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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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On October 19, 2004, Great American Bancorp, Inc. issued a press release
in which it announced its unaudited results of operations for the three and
nine months ended September 30, 2004. A copy of the press release is
furnished with this Current Report on Form 8-K as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
c. Exhibits
Exhibit Number Description
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99.1 Press release dated October 19, 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 October 19, 2004 /s/ Jane F. Adams
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Jane F. Adams
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 October 19, 2004
Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
October 19, 2004
Contact: Ms. Jane F. Adams
Chief Financial Officer and Investor Relations
(217) 356-2265
GREAT AMERICAN BANCORP, INC.
UNAUDITED RESULTS THIRD QUARTER 2004 - YEAR-TO-DATE NET INCOME OF $1,033,000
Champaign, Illinois - Great American Bancorp, Inc. (Nasdaq SmallCap/GTPS), the
holding company for First Federal Savings Bank of Champaign-Urbana, reported
net income of $1,033,000 for the nine months ended September 30, 2004, a
decrease of $235,000, or 18.5%, from $1,268,000 reported for the nine months
ended September 30, 2003. Basic earnings per share were $1.40 for the nine
months ended September 30, 2004, compared to $1.65 for the nine months ended
September 30, 2003, while fully diluted earnings per share were $1.29 for the
nine months ended September 30, 2004 and $1.49 for the nine months ended
September 30, 2003.
Net income declined in 2004 primarily due to lower noninterest income and
higher noninterest expense, offset by a reduction in income taxes due mainly
to lower pretax earnings. Net interest income was only slightly lower in
2004.
Net interest income was $4,234,000 for the nine months ended September 30,
2004; decreasing $29,000 from $4,263,000 reported for the nine months ended
September 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 $108.71 million during the nine months ended September 30, 2004
compared to $110.68 million during the same period in 2003. Total average
loans declined mainly as a result of payoffs in the multifamily and commercial
mortgage loan categories during the latter half of 2003. The average yield on
net loans declined from 7.40% for the nine months ended September 30, 2003 to
6.66% for the nine months ended September 30, 2004.
The decline in net interest income due to lower loan interest was partially
offset by a decrease in interest expense on deposits. Interest expense on
deposits declined primarily as a result of a decrease in total certificates of
deposit. Total certificates of deposit averaged $50.26 million for the nine
months ended September 30, 2004, down from an average of $59.33 million for
the nine months ended September 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 nine months of 2004.
The Company recorded no provision for loan losses for the nine month periods
ended September 30, 2004 and September 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 $2,381,000 for the nine months ended September 30,
2004, $321,000, or 11.9%, lower than the $2,702,000 recorded for the nine
months ended September 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 $16,000 for the first nine months of 2004
compared to $647,000 for the first nine months of 2003. The Company sold
$936,000 in loans during the nine months ended September 30, 2004 compared to
$32.39 million in loan sales for the first nine 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 $273,000, or 21.3%, from $1,279,000 for
the nine months ended September 30, 2003 to $1,552,000 for the nine months
ended September 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 $4,982,000 for the nine months ended September 30,
2004, $76,000, or 1.5%, higher than the $4,906,000 reported for the nine
months ended September 30, 2003. This increase was primarily due to higher
salaries and employee benefits expense, equipment expenses, and professional
fees.
Income tax expense was $600,000 for the first nine months of 2004 compared to
$791,000 for the first nine months of 2003, declining $191,000, or 24.1%.
This decrease was mainly due to lower pretax earnings. The effective tax
rates for the nine months ended September 30, 2004 and 2003 were 36.7% and
38.4% respectively.
Net income for the third quarter of 2004 was $411,000, which was $51,000, or
14.2%, higher than net income recorded of $360,000 for the third quarter of
2003. Net interest income for the third quarter of 2004 was $1,511,000
compared to $1,322,000 for the third quarter of 2003. The Company recorded no
provision for loan losses for the third quarters of 2004 or 2003. Noninterest
income was $736,000 for the third quarter of 2004 and $848,000 for the third
quarter of 2003. This decrease is attributable to net gains on residential
loan sales, which were $93,000 lower in the third quarter of 2004.
Noninterest expense was $1,632,000 for the third quarter of 2004, $28,000
higher than the $1,604,000 reported for the third quarter of 2003.
Total assets at September 30, 2004 were $156.51 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
$24.92 million at September 30, 2004. Total net loans increased $17.09
million, or 17.0%, from $100.77 million at December 31, 2003 to $117.86
million at September 30, 2004, due mainly to increases in residential mortgage
loans. Total deposits decreased $4.39 million, from $126.66 million at
December 31, 2003 to $122.27 million at September 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-2004-07
Great American Bancorp, Inc.
Consolidated Balance Sheets
September 30, 2004 and December 31, 2003
(in thousands, except share data)
Sept. 30, 2004 Dec. 31, 2003
(Unaudited)
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Assets
Cash and due from banks $ 3,786 $ 4,388
Interest-bearing demand deposits 6,132 9,674
Federal Home Loan Bank term deposit 15,000 30,000
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Cash and cash equivalents 24,918 44,062
Available-for-sale securities 3,351 4,200
Held-to-maturity securities 333 532
Loans, net of allowance for loan
losses of $1,203 and $1,190 117,857 100,772
Premises and equipment 6,020 6,299
Federal Home Loan Bank stock 1,386 1,324
Other assets 2,649 2,261
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Total assets $ 156,514 $ 159,450
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Liabilities and Stockholders' Equity
Liabilities
Deposits
Demand $ 12,150 $ 13,008
Savings, NOW and money market 62,756 59,945
Time 47,359 53,711
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Total deposits 122,265 126,664
Federal Home Loan Bank advances 15,000 13,000
Other liabilities 1,912 2,150
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Total liabilities 139,177 141,814
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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 21,297 20,508
Unearned incentive plan shares (60) (63)
Accumulated other comprehensive income (11) 20
Treasury stock, at cost, - 1,317,747 and
1,296,747 shares (24,546) (23,262)
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Total stockholders' equity 17,337 17,636
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Total liabilities and
stockholders' equity $ 156,514 $ 159,450
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Great American Bancorp, Inc.
Consolidated Statements of Income
For the Nine Months Ended September 30, 2004 and September 30, 2003
(unaudited, in thousands, except share data)
Nine Months Ended Nine Months Ended
Sept. 30, 2004 Sept. 30, 2003
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Interest Income:
Loans $ 5,420 $ 6,122
Securities 135 46
Dividends on Federal Home Loan Bank stock 62 56
Deposits with financial institutions
and other 230 312
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Total interest income 5,847 6,536
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Interest Expense:
Deposits 1,167 1,801
Federal Home Loan Bank advances 429 453
Other 17 19
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Total interest expense 1,613 2,273
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Net Interest Income 4,234 4,263
Provision for Loan Losses -- --
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Net Interest Income After
Provision for Loan Losses 4,234 4,263
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Noninterest Income:
Insurance sales commissions 1,552 1,279
Customer service fees 415 432
Other service charges and fees 179 177
Net gains on loan sales 16 647
Loan servicing fees 128 94
Other 91 73
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Total noninterest income 2,381 2,702
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Noninterest Expense:
Salaries and employee benefits 2,938 2,763
Net occupancy expense 417 429
Equipment expense 472 383
Professional fees 220 178
Marketing expense 150 184
Printing and office supplies 200 228
Directors and committee fees 103 108
Amortization of mortgage servicing rights 63 150
Other 419 483
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Total noninterest expense 4,982 4,906
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Income Before Income Taxes 1,633 2,059
Provision for Income Taxes 600 791
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Net income $ 1,033 $ 1,268
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Basic Earnings per Share $ 1.40 $ 1.65
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Diluted Earnings per Share $ 1.29 $ 1.49
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Great American Bancorp, Inc.
Consolidated Statements of Income
For the Three Months Ended September 30, 2004 and September 30, 2003
(unaudited, in thousands, except share data)
Quarter Ended Quarter Ended
Sept. 30, 2004 Sept. 30, 2003
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Interest Income:
Loans $ 1,901 $ 1,870
Securities 41 12
Dividends on Federal Home Loan Bank stock 21 21
Deposits with financial institutions
and other 76 103
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Total interest income 2,039 2,006
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Interest Expense:
Deposits 374 529
Federal Home Loan Bank advances 148 149
Other 6 6
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Total interest expense 528 684
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Net Interest Income 1,511 1,322
Provision for Loan Losses -- --
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Net Interest Income After
Provision for Loan Losses 1,511 1,322
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Noninterest Income:
Insurance sales commissions 458 478
Customer service fees 152 155
Other service charges and fees 60 58
Net gains on loan sales 2 95
Loan servicing fees 43 39
Other 21 23
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Total noninterest income 736 848
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Noninterest Expense:
Salaries and employee benefits 960 910
Net occupancy expense 138 146
Equipment expense 153 136
Professional fees 66 51
Marketing expense 64 61
Printing and office supplies 62 76
Directors and committee fees 34 35
Amortization of mortgage servicing rights 16 38
Other 139 151
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Total noninterest expense 1,632 1,604
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Income Before Income Taxes 615 566
Provision for Income Taxes 204 206
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Net income $ 411 $ 360
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Basic Earnings per Share $ 0.56 $ 0.48
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Diluted Earnings per Share $ 0.52 $ 0.43
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Great American Bancorp, Inc.
Selected Financial Data
(unaudited, in thousands, except per share data)
As of As of
Sept. 30, 2004 Dec. 31, 2003
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Total assets $ 156,514 $ 159,450
Total loans, net 117,857 100,772
Loan loss reserve 1,203 1,190
Non-performing assets 36 4
Non-performing assets to total assets 0.02% 0.00%
Allowance for loan losses to total assets 0.77% 0.75%
Investment securities 3,684 4,732
Total deposits 122,265 126,664
Checking deposits 33,940 35,218
Money market deposits 20,988 18,991
Passbook savings deposits 19,978 18,744
Certificates of deposit 47,359 53,711
Federal Home Loan Bank advances 15,000 13,000
Total stockholders' equity 17,337 17,636
Three Months Ended Nine Months Ended
Sept. Sept. Sept. Sept.
2004 2003 2004 2003
(unaudited) (unaudited)
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Net interest margin (annualized) 4.16% 3.43% 3.91% 3.70%
ROA (annualized) 1.12% 0.86% 0.87% 1.01%
ROE (annualized) 10.41% 8.06% 7.99% 9.49%