Group 1 - GBank Financial Holdings Inc. is the parent company of GBank and is involved in a partnership with BoltBetz and Terrible's Gaming to implement cashless gaming technology across thousands of slot machines [1] - GBank operates as a bank holding company headquartered in Las Vegas, Nevada, and is listed on the Nasdaq Capital Market under the symbol "GBFH" [2] - The company provides a range of banking products and services, including the GBank Visa Signature Card tailored for the gaming and sports entertainment markets, and operates two full-service commercial branches in Las Vegas [2] Group 2 - GBank is recognized as a top national SBA lender and operates across 40 states, serving small businesses, middle-market enterprises, public entities, and affluent individuals [2] - The company routinely posts important information for investors on its website, which serves as a platform for disclosing material non-public information in compliance with SEC regulations [3]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the three and six months ended June 30, 2025, showing growth in total assets, loans, and deposits, with net income increasing for the six-month period compared to the prior year [Consolidated Balance Sheets (Unaudited)](index=6&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) As of June 30, 2025, total assets increased to $1.23 billion from $1.12 billion at year-end 2024, driven by growth in net loans and cash equivalents, while total liabilities rose to $1.08 billion, primarily due to a $97.4 million increase in deposits, and total stockholders' equity grew to $151.7 million from $140.7 million | (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,232,424** | **$1,122,364** | | Total cash and cash equivalents | $143,229 | $124,122 | | Loans, net | $862,425 | $806,844 | | **Total Liabilities** | **$1,080,675** | **$981,664** | | Total deposits | $1,032,464 | $935,080 | | **Total Stockholders' Equity** | **$151,749** | **$140,700** | [Consolidated Statements of Income (Unaudited)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)) For the second quarter of 2025, net income was $4.76 million, a slight increase from $4.68 million in Q2 2024, and for the six months ended June 30, 2025, net income rose to $9.23 million from $8.38 million year-over-year, supported by a significant increase in noninterest income, particularly from net interchange fees, which helped offset higher provisions for credit losses and increased noninterest expenses | (Dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $12,388 | $11,348 | $24,282 | $22,151 | | Provision for credit losses | $1,092 | $295 | $1,813 | $315 | | Total noninterest income | $5,384 | $4,166 | $10,847 | $6,571 | | Total noninterest expense | $10,396 | $9,132 | $21,303 | $17,508 | | **Net Income** | **$4,755** | **$4,676** | **$9,225** | **$8,376** | | **Diluted EPS** | **$0.33** | **$0.36** | **$0.63** | **$0.65** | [Consolidated Statements of Comprehensive Income (Unaudited)](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) Comprehensive income for Q2 2025 was $4.56 million, a decrease from $4.74 million in Q2 2024, primarily due to unrealized losses on available-for-sale securities, while for the six-month period, comprehensive income increased to $9.33 million from $8.43 million in the prior year | (Dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $4,755 | $4,676 | $9,225 | $8,376 | | Other comprehensive income (loss), net of tax | ($196) | $59 | $104 | $53 | | **Comprehensive income** | **$4,559** | **$4,735** | **$9,329** | **$8,429** | [Consolidated Statements of Stockholders' Equity (Unaudited)](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity%20(Unaudited)) Total stockholders' equity increased from $140.7 million at December 31, 2024, to $151.7 million at June 30, 2025, primarily driven by net income of $9.2 million earned during the first six months of 2025 - Stockholders' equity grew by **$11.0 million** in the first six months of 2025, reaching **$151.7 million**, mainly due to retained earnings from net income[19](index=19&type=chunk) [Consolidated Statements of Cash Flows (Unaudited)](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) For the first six months of 2025, cash and cash equivalents increased by $19.1 million, primarily due to $98.0 million in net cash from financing activities, largely from deposit growth, which more than offset the $74.0 million used in investing activities for loan growth and securities purchases, and $4.8 million used in operating activities | (Dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($4,823) | $669 | | Net cash used in investing activities | ($74,026) | ($87,218) | | Net cash provided by financing activities | $97,956 | $76,774 | | **Net increase (decrease) in cash and cash equivalents** | **$19,107** | **($9,775)** | [Notes to Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed disclosures on accounting policies and specific financial statement items, covering investment securities, loans, allowance for credit losses, deposits, subordinated debt, credit lines, and regulatory capital, offering deeper insight into the company's financial health and operations - The company's lending operations are concentrated in its local market (Nevada, California, Utah, Arizona) and nationwide through SBA and USDA loan programs[28](index=28&type=chunk) - The company operates as a single reportable segment, with the Chief Operating Decision Maker evaluating performance on a consolidated basis[25](index=25&type=chunk)[117](index=117&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance and condition, highlighting loan and deposit growth as key drivers, noting a decrease in net interest margin offset by strong growth in noninterest income, particularly from credit card interchange fees, while also covering credit quality, an increase in non-performing assets, and confirming strong liquidity and capital positions [Results of Operations](index=41&type=section&id=Results%20of%20Operations) For the first six months of 2025, net income increased to $9.2 million from $8.4 million year-over-year, driven by a 65.1% surge in noninterest income, primarily from a significant increase in net interchange fees, despite a decline in net interest margin to 4.39% from 4.83% due to a lower interest rate environment, and a 21.7% rise in noninterest expenses reflecting increased staffing, data processing, and SEC registration costs | Performance Ratios | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Return on Average Assets | 1.60% | 1.75% | | Return on Average Equity | 12.61% | 16.17% | | Net Interest Margin (annualized) | 4.39% | 4.83% | - Noninterest income for the six months ended June 30, 2025, increased by **65.1%** year-over-year, primarily driven by a **2,018.6%** increase in net interchange fees from the company's Visa Signature® Card product[153](index=153&type=chunk)[154](index=154&type=chunk) - Noninterest expense for the six months ended June 30, 2025, rose by **21.7%** compared to the same period in 2024, attributed to higher salaries from increased headcount, increased data processing costs, and non-recurring fees associated with SEC registration[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) [Comparison of Financial Condition](index=47&type=section&id=Comparison%20of%20Financial%20Condition) Total assets grew by 10% to $1.23 billion at June 30, 2025, from year-end 2024, driven by a 7% increase in net loans to $871.6 million and a 10% increase in total deposits to $1.03 billion, while non-performing loans increased to $18.4 million, representing 2.11% of net loans, up from $14.2 million at year-end, and the allowance for credit losses remained stable at 1.1% of total loans - Total assets increased by **10%** to **$1.23 billion** at June 30, 2025, compared to **$1.12 billion** at December 31, 2024[165](index=165&type=chunk) - Total loans increased by **7%** to **$871.6 million**, and total deposits increased by **10%** to **$1.03 billion** since December 31, 2024[171](index=171&type=chunk)[191](index=191&type=chunk) | (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total non-performing loans | $18,373 | $14,168 | | Non-performing loans to net loans | 2.11% | 1.74% | | ACL to gross loans | 1.06% | 1.12% | [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $271.4 million in primary on-balance-sheet sources and substantial unused borrowing capacity, including $100.1 million from the FHLB and $380.1 million from the Federal Reserve's BIC Program, with robust capital levels, including the bank's Tier 1 Capital Leverage Ratio at 13.82%, significantly exceeding the 9.00% regulatory requirement under the CBLR framework - The company has significant available liquidity, with unused borrowing capacity of **$100.1 million** from the FHLB and **$380.1 million** from the Federal Reserve's BIC Program as of June 30, 2025[204](index=204&type=chunk)[205](index=205&type=chunk) - The company is well-capitalized and operates under the Community Bank Leverage Ratio (CBLR) framework, with a Bank Tier 1 Capital Leverage Ratio of **13.82%** as of June 30, 2025, well above the **9.00%** requirement[199](index=199&type=chunk)[201](index=201&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, GBank Financial Holdings Inc. is not required to provide the information for this item - The company is exempt from this disclosure requirement due to its status as a smaller reporting company[208](index=208&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Principal Executive Officer and Principal Financial Officer, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes to the company's internal control over financial reporting during the quarter - Based on an evaluation, the Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[209](index=209&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[210](index=210&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any pending legal proceedings other than routine matters occurring in the ordinary course of business, which are not expected to have a material adverse effect on its financial condition or operations - The company reports no material pending legal proceedings outside of the ordinary course of business[212](index=212&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed by the company in its Registration Statement on Form S-1 - No material changes in risk factors have occurred since the company's Registration Statement on Form S-1[213](index=213&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None reported[214](index=214&type=chunk) [Other Information](index=55&type=section&id=Item%205.%20Other%20Information) No director or officer of the company adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025 - No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[217](index=217&type=chunk) [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer - The report includes required certifications from the Principal Executive Officer and Principal Financial Officer as exhibits[219](index=219&type=chunk)

Financial Data and Key Metrics Changes - Q2 earnings were approximately $4,800,000, an increase from $4,500,000 in the prior quarter [16] - Net revenue for the quarter reached a record $17,800,000, up 215% compared to the prior linked and year-over-year quarters [16] - Net interest income was $12,400,000, while net interest margin declined to 4.31% from 4.47% in Q1 [17] - Total non-interest income decreased to $5,400,000 from $5,500,000 in Q1 [17] - Total non-interest expense for the quarter was $10,400,000, down approximately $500,000 compared to Q1 [20] - Efficiency ratio improved to 58.5% from 62.8% in Q1 [20] - Total assets increased by 3.6% to $1,230,000,000, and shareholders' equity grew by 3.5% to $151,700,000 [21][22] Business Line Data and Key Metrics Changes - New SBA and commercial loans originated during the quarter exceeded $160,000,000, marking a significant achievement [16] - Gain on sale of loans for the quarter was $2,600,000, with loan sales volume at $82,100,000, but gain on sale percentage declined to 3.16% [17][18] - Net interchange income from the gaming and credit card division dropped to $1,500,000 from $2,000,000 in Q1 [24] Market Data and Key Metrics Changes - The company reported a reduction in non-performing assets (NPAs) net of guarantees to $4,600,000, which is 0.37% of total assets [19] - The gaming industry is experiencing increased transaction activity, with significant growth expected in the future [30] Company Strategy and Development Direction - The company is focusing on improving loan spreads and managing origination costs while preparing for future market improvements [20] - Enhancements in automated systems and fraud protection are being implemented to support marketing efforts in the credit card division [25][26] - The company anticipates regulatory approval for its slot program, which will allow it to manage slot proceeds under an FDIC insured account [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth in the credit card division based on July's performance, indicating a potential recovery [28][41] - The gaming fintech division is expected to grow, with ongoing developments in stablecoin and prepaid programs [37][38] - The company is well-positioned to capitalize on the evolving gaming landscape, particularly in cashless wagering [39][40] Other Important Information - The company has a strong liquidity position, with total liquidity increasing to $820,000,000, equating to approximately 77% of total deposits [22] - The company has transitioned to being SEC registered and is now listed on Nasdaq and the Russell 2000 [40] Q&A Session Summary Question: Guidance on credit card growth for the remainder of the year - Management indicated that while they cannot provide specific guidance, July's results are indicative of future growth [41] Question: Expectations for BoldBets and player onboarding - The speed of player onboarding will depend on the gaming operators' interest and efforts, with local businesses expected to show higher participation [42][43] Question: Details on the Konami deal and expected deposits - The relationship with Konami is crucial for the casino management system, but the bank does not have a direct relationship with Konami's machines or deposits [46]

Financial Data and Key Metrics Changes - Q2 earnings were approximately $4,800,000, an increase from $4,500,000 in the prior quarter [15] - Net revenue for the quarter reached a record $17,800,000, up 215% compared to the prior linked and year-over-year quarters [15] - Net interest income was $12,400,000, while net interest margin declined to 4.31% from 4.47% in Q1 [16] - Total non-interest income decreased to $5,400,000 from $5,500,000 in Q1 [16] - Total non-interest expense for the quarter was $10,400,000, down approximately $500,000 compared to Q1 [19] - Efficiency ratio improved to 58.5% from 62.8% in Q1 [20] - Total assets increased by 3.6% to $1,230,000,000, and shareholders' equity grew by 3.5% to $151,700,000 [20][21] Business Line Data and Key Metrics Changes - New SBA and commercial loans originated during the quarter exceeded $160,000,000 [15] - Gain on sale of loans for the quarter was $2,600,000, with loan sales volume at $82,100,000 [16][17] - Non-performing assets (NPAs) net of guarantees decreased to $4,600,000, representing 0.37% of total assets [17] Market Data and Key Metrics Changes - The gaming and credit card divisions experienced a decline in transactions, with credit card transactions dropping to $82,000,000 and net interchange income to $1,500,000 [23] - July transactions showed significant growth, estimated at approximately $38,500,000, indicating a 35% increase from June [26] Company Strategy and Development Direction - The company is focusing on enhancing automated systems and fraud protection in the credit card division to support future growth [25] - The gaming fintech division is exploring new payment systems and stablecoin initiatives, indicating a strategic pivot towards innovative financial solutions [36] - The company anticipates regulatory approval for its slot program, which would allow it to manage slot proceeds under FDIC insured accounts [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future SBA activity, citing strong volumes and pipelines [18] - The company is positioned to benefit from increased gaming activity and expects substantial growth in its credit card division as enhancements are implemented [27][39] - Management noted the evolving gaming landscape, with increased player engagement and transaction activity expected [28] Other Important Information - The company has a strong liquidity position, with total liquidity increasing to $820,000,000, equating to approximately 77% of total deposits [21] - The company is transitioning to become an SEC registered entity, with related operating expenses decreasing significantly [15] Q&A Session Summary Question: Guidance on credit card growth for the remainder of the year - Management indicated that while issues have been enhanced, they cannot provide specific guidance for the next two to four quarters but noted positive trends in July [40] Question: Expectations for BoldBets and player onboarding - The onboarding process is dependent on gaming operators, with local businesses expected to show higher penetration rates compared to larger institutions [41][42] Question: Details on the Konami deal and expected deposits - The relationship with Konami is tied to the casino management system, and the bank does not have a direct relationship with Konami's machines or deposits [45]

Quarter in Review: Growth, Challenges, and Notable Events Loan and deposit growth underpinned much of the company's performance during the quarter. Deposits rose $189.0 million year over year in Q1 2025, and the total loan book reached $871.6 million. Small Business Administration and commercial loan originations marked a quarterly record, rising to $160.5 million. Loan growth was strongest in commercial real estate, though multifamily and residential portfolios declined. Despite broader loan diversificatio ...

Core Insights - GBank Financial Holdings Inc. reported quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.36 per share, representing an earnings surprise of -8.33% [1] - The company posted revenues of $17.77 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 6.46%, compared to year-ago revenues of $15.51 million [2] - GBank shares have underperformed the market, losing about 2.7% since the beginning of the year, while the S&P 500 gained 8.6% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.48 on revenues of $21 million, and for the current fiscal year, it is $1.66 on revenues of $79.3 million [7] - The estimate revisions trend for GBank was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Southwest industry, to which GBank belongs, is currently in the top 17% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - The company reported net income of $4.8 million for Q2 2025, an increase from $4.5 million in Q1 2025 and $4.7 million in Q2 2024, translating to $0.33 per diluted share compared to $0.31 and $0.36 respectively [1][15] - For the first half of 2025, net income was $9.2 million, up from $8.4 million in the same period of 2024 [1] - Net revenue for Q2 2025 totaled $17.8 million, a 2.4% increase from $17.4 million in Q1 2025 and a 14.6% increase from $15.5 million in Q2 2024 [12] Income and Expenses - Net interest income for Q2 2025 was $12.4 million, reflecting a 4.2% increase from Q1 2025 and a 9.2% increase from Q2 2024 [4][6] - Non-interest income was $5.4 million for Q2 2025, a slight decrease from $5.5 million in Q1 2025 but an increase from $4.2 million in Q2 2024 [11] - Non-interest expense decreased to $10.4 million in Q2 2025 from $10.9 million in Q1 2025, while it increased from $9.1 million in Q2 2024 [13] Loan and Deposit Growth - Total loans, net of deferred fees, increased to $871.6 million as of June 30, 2025, up from $843.4 million in Q1 2025 and $772.9 million in Q2 2024 [17] - Deposits totaled $1.032 billion as of June 30, 2025, an increase from $995.9 million in Q1 2025 and $840.4 million in Q2 2024 [19] - The ratio of loans to deposits was 84.4% as of June 30, 2025, compared to 84.7% in Q1 2025 and 92.0% in Q2 2024 [20] Asset Quality - The provision for credit losses on loans was $1.1 million for Q2 2025, an increase from $710 thousand in Q1 2025 and $283 thousand in Q2 2024 [9][26] - Non-performing assets totaled $18.4 million as of June 30, 2025, a decrease from $20.4 million in Q1 2025 but an increase from $7.6 million in Q2 2024 [29] - The ratio of total non-performing assets to total assets was 1.49% as of June 30, 2025, down from 1.71% in Q1 2025 but up from 0.75% in Q2 2024 [31] Strategic Initiatives - The company has restarted credit card applications, with transaction volume in Q3 2025 trending 35% above Q2 2025 levels [3] - SBA lending and commercial banking loan originations reached a record $160.5 million in Q2 2025, compared to $133.0 million in Q1 2025 [33] - The company is enhancing its credit card operations and developing new platforms targeted for completion in Q4 2025 [34][35]

GBank Financial Holdings Inc. Second Quarter 2025 Financial Results [Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) GBank reported net income of $4.8 million, or $0.33 per diluted share, for Q2 2025, achieving a record $160.5 million in SBA and commercial loan originations despite a minor decline in non-interest income Net Income and EPS | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Net Income** | $4.8 million | $4.5 million | $4.7 million | | **Diluted EPS** | $0.33 | $0.31 | $0.36 | | **Net Income (YTD)** | $9.2 million | - | $8.4 million | | **Diluted EPS (YTD)** | $0.63 | - | $0.65 | - Executive Chairman Edward M. Nigro noted a **1.5% QoQ decline** in non-interest income due to a pause in credit card issuance and a lower gain on SBA loan sale margin of **3.16%**, mitigated by the restart of credit card applications with Q3 volume already trending **35% higher** and strong SBA loan originations of **$132 million**[3](index=3&type=chunk) Key Metrics (Q2 2025) | Key Metrics (Q2 2025) | Value | Comparison | | :--- | :--- | :--- | | **Net Revenue** | $17.8 million | +2.4% vs Q1 2025 | | **Gain on Loan Sales** | $2.6 million | on $82.1 million loans sold | | **SBA & Commercial Loan Originations** | $160.5 million | All-time record | | **Non-performing Assets (excl. guaranteed)** | $4.6 million | 0.37% of total assets | [Financial Results Analysis](index=1&type=section&id=Financial%20Results) The company's Q2 2025 performance featured strong net interest income growth driven by higher earning assets, balance sheet expansion, and improved efficiency, despite net interest margin compression and increased credit loss provisions [Income Statement Analysis](index=1&type=section&id=Income%20Statement) Net interest income grew significantly due to higher average earning assets, while non-interest expenses decreased, improving the efficiency ratio despite a compressed net interest margin and increased provision for credit losses Net Interest Income | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Net Interest Income** | $12.4 million | $11.9 million | $11.4 million | | **Change vs Q1 2025** | +$494 thousand (+4.2%) | - | - | | **Change vs Q2 2024** | +$1.0 million (+9.2%) | - | - | - The Net Interest Margin (NIM) decreased to **4.31%** in Q2 2025, down from **4.47%** in Q1 2025 and **4.82%** in Q2 2024, attributed to slightly lower loan yields and a decrease in the yield on investment securities[9](index=9&type=chunk) - The provision for credit losses on loans increased to **$1.1 million** in Q2 2025, up from **$710 thousand** in Q1 2025, reflecting organic loan growth and replenishment of reserves for charge-offs[10](index=10&type=chunk) - Non-interest expense decreased to **$10.4 million** in Q2 2025 from **$10.9 million** in Q1 2025, primarily due to lower non-recurring legal and professional fees, leading to an improved efficiency ratio of **58.5%**[13](index=13&type=chunk) [Balance Sheet Analysis](index=3&type=section&id=Balance%20Sheet) The balance sheet expanded significantly year-over-year, with total assets, loans, and deposits showing robust growth, and stockholders' equity increasing substantially Balance Sheet Overview | Balance Sheet Item | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | | **Total Assets** | $1.23 billion | $1.19 billion | $1.01 billion | | **Total Loans** | $871.6 million | $843.4 million | $772.9 million | | **Total Deposits** | $1.032 billion | $995.9 million | $840.4 million | | **Stockholders' Equity** | $151.7 million | $146.6 million | $110.9 million | - The allowance for credit losses as a percentage of total loans, excluding guaranteed portions, was **1.36%** as of June 30, 2025, compared to **1.41%** as of March 31, 2025, and **1.32%** as of June 30, 2024[18](index=18&type=chunk) - Book value per share increased to **$10.63** as of June 30, 2025, representing a **3.5% increase** from the prior quarter and a **25.2% increase** from the prior year[24](index=24&type=chunk) [Asset Quality Analysis](index=3&type=section&id=Asset%20Quality) Net loan charge-offs increased significantly year-over-year, and while total non-performing assets decreased quarter-over-quarter, they remain higher than the prior year, necessitating continued credit quality monitoring Net Loan Charge-offs | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Net Loan Charge-offs** | $870 thousand | $828 thousand | $29 thousand | | **Annualized Net Charge-offs to Avg. Loans** | 0.38% | 0.39% | 0.01% | - Total non-performing assets (NPAs) decreased by **$2.0 million** during the quarter to **$18.4 million**, but increased by **$10.8 million** from June 30, 2024[30](index=30&type=chunk) Non-Performing Asset Ratios | Ratio | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | | **NPA to Total Assets** | 1.49% | 1.71% | 0.75% | | **NPA (excl. guaranteed) to Total Assets** | 0.37% | 0.48% | 0.22% | - The company continues to closely monitor credit quality due to ongoing economic uncertainty, including the interest rate environment, inflation, and U.S. trade policy, noting that additional provisions for credit losses may be necessary in the future[33](index=33&type=chunk) [Business Segment Highlights](index=4&type=section&id=Other%20Financial%20Highlights) The SBA Lending and Commercial Banking segment achieved record loan originations, while the Gaming FinTech division experienced a temporary dip in transaction volume due to system enhancements, with strong rebound activity and ongoing new platform development - SBA lending and commercial banking loan originations reached a record **$160.5 million** for Q2 2025, though the average pretax gain on sale of loans margin decreased to **3.16%** from **4.36%** in Q2 2024[34](index=34&type=chunk) - In Gaming FinTech, the company completed system enhancements to internalize control of its credit card operations, which, combined with seasonality, led to a **22% QoQ decline** in transaction volume to **$82 million**[35](index=35&type=chunk)[36](index=36&type=chunk) - Despite the Q2 slowdown, the company began processing new card applications in mid-June and is already seeing significantly higher transaction volume compared to the second quarter[36](index=36&type=chunk) - The Prepaid Access/Slot program with BoltBetz has completed technology development and is awaiting final regulatory approvals, with a growing pipeline for new payments agreements[38](index=38&type=chunk) [Supplementary Information](index=6&type=section&id=Supplementary%20Information) This section provides details for the upcoming earnings call, a corporate profile, and important disclosures regarding non-GAAP financial measures and forward-looking statements - The company will host its Q2 2025 earnings call on **Tuesday, July 29, 2025, at 10:00 a.m. PST** via a ZOOM conference[40](index=40&type=chunk) - The company explains its use of non-GAAP financial measures, stating they provide a more complete understanding of its financial position and performance, with a reconciliation to GAAP measures provided at the end of the release[43](index=43&type=chunk)[45](index=45&type=chunk) - The press release contains forward-looking statements subject to numerous known and unknown risks and uncertainties, including economic conditions, interest rate changes, and regulatory factors, cautioning readers not to place undue reliance on these statements[50](index=50&type=chunk) [Consolidated Financial Statements (Tables)](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents the detailed, unaudited consolidated financial statements and supplementary data for GBank Financial Holdings Inc. as of and for the periods ended June 30, 2025, including balance sheets, income statements, and key performance metrics [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) [Condensed Consolidated Income Statements](index=9&type=section&id=Condensed%20Consolidated%20Income%20Statements) [Average Balances, Rates, and Interest Income and Expense](index=10&type=section&id=Average%20Balances%2C%20Rates%2C%20and%20Interest%20Income%20and%20Expense) [Additional Financial Information](index=12&type=section&id=Additional%20Financial%20Information) [Reconciliation of Non-GAAP Financial Measures](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures)

Core Viewpoint - GBank Financial Holdings Inc. plans to release its second quarter 2025 financial results on July 28, 2025, and will host a quarterly earnings call on July 29, 2025, at 10:00 a.m. PST, accessible remotely [1]. Company Overview - GBank Financial Holdings Inc. is a bank holding company based in Las Vegas, Nevada, listed on the Nasdaq Capital Market under the symbol "GBFH" [4]. - The company operates a national payment and Gaming FinTech business, serving gaming clients across the U.S. and offering the GBank Visa Signature Card tailored for the gaming and sports entertainment markets [4]. - GBank is recognized as a top national SBA lender, operating in 40 states, and has two full-service commercial branches in Las Vegas, Nevada, providing a range of banking products and services [4]. Investor Information - The company regularly posts important information for investors on its website, which serves as a means of disclosing material non-public information and complying with SEC disclosure obligations [5]. - Investors are encouraged to monitor the company's website, press releases, SEC filings, public conference calls, presentations, and webcasts for updates [5].

Financial Performance & Growth - GBank Financial Holdings Inc has demonstrated industry-leading growth, with total loans up by 62% and total deposits up by 49% from September 30, 2023, to September 30, 2024[10] - The company's YTD pre-tax income increased by 89%, and YTD net income increased by 81%[10] - Total assets reached $1048 million as of September 30, 2024[10,30] - The company has shown consistent profitability, with core return on average assets between 153% and 204% since 2018[12] Key Financial Metrics (Q3 2024) - Net interest margin stood at 500%[10] - Core ROAA was 196%[10] - Core ROAE was 1729%[10] - The efficiency ratio was 592%[30] - Total tangible equity was $1164 million, representing 111% of total assets[30] Strategic Initiatives & Opportunities - GBank is a top originator of SBA 7(a) credits and the leading originator of hotel SBA loans in the country[12] - The company has partnered with BankCard Services LLC, positioning itself as a market leader in the Gaming FinTech space[12] - GBank's Visa Signature® card saw quarterly transaction volume increase from $11 million to $139 million from Q1 2024 to Q3 2024[13] Loan Portfolio & Asset Quality - The loan portfolio totaled $846 million, with a yield of 857%[71] - Government guaranteed loans constitute 315% of the loan portfolio[71] - Non-performing assets (NPAs) excluding government guaranteed assets, represent 015% of total assets[30] - The allowance for credit losses (ACL) to gross loans, excluding government guaranteed loans, is 136%[30]