A Las Vegas bank has taken a significant step forward in its push to capitalize on the rise of cashless payments in gambling.Processing ContentThe Nevada Gaming Control Board's recent approval of BoltBetz, a cashless gaming system supported by the $1.3 billion-asset GBank, sets the stage for a wider rollout, even though initial plans are currently limited to just nine Las Vegas taverns. The BoltBetz app, which is expected to be available through Google Play and Apple's App Store, allows users to transfer f ...

Core Insights - GBank Financial Holdings Inc. has received significant approvals for its strategic partner BoltBetz, allowing the launch of a cashless gaming platform in Las Vegas [1][2] - The approvals from the Nevada Gaming Control Board enable BoltBetz to integrate its mobile app with Konami's SYNKROS cashless wagering system and to be used at Distill and Remedy's Taverns [1][2] Company Overview - GBank Financial Holdings Inc. is a bank holding company based in Las Vegas, Nevada, listed on the Nasdaq under the symbol "GBFH" [3] - The company operates a national payment and Gaming FinTech business, serving gaming clients across the U.S. and offering products like the GBank Visa Signature Card tailored for the gaming and sports entertainment markets [3] - GBank is recognized as a top national SBA lender, operating in 40 states, and has two full-service commercial branches in Las Vegas [3] Strategic Developments - The approvals mark a culmination of years of planning and development, positioning BoltBetz as a unique slot machine app and bank payments system for licensed gaming operators [2] - The company aims to provide seamless solutions to licensed gaming slot operators in Nevada and across the United States [2]

Financial Performance - Net income for the three months ended September 30, 2025, was $4.3 million, with diluted earnings per share of $0.30, compared to $5.0 million and $0.38 for the same period in 2024[133] - The net interest margin (annualized) for the three months ended September 30, 2025, was 4.35%, down from 5.00% in the same period of 2024[133] - Return on average assets for the three months ended September 30, 2025, was 1.37%, compared to 1.96% for the same period in 2024[133] - Return on average equity for the three months ended September 30, 2025, was 10.89%, down from 17.29% in the same period of 2024[133] - For the three months ended September 30, 2025, net interest income was $12.998 million, an increase from $12.259 million for the same period in 2024[152] - Noninterest income for the three months ended September 30, 2025, totaled $7.2 million, an increase of 83.9% compared to $3.9 million for the same period in 2024[157] Loan and Deposit Growth - Loan growth increased by 15% since December 31, 2024[138] - Principal balances of loans sold reached $110.8 million, up from $71.4 million during the three months ended September 30, 2024[138] - Total loans increased 15% to $940.6 million at September 30, 2025, compared to $816.0 million at December 31, 2024[175] - Loan originations totaled $535.7 million during the first nine months of 2025, up from $419.9 million for the same period in 2024[175] - Total deposits increased 17% to $1.1 billion at September 30, 2025, compared to $935.1 million at December 31, 2024[195] Asset and Liability Management - Total assets increased to $1.248 billion as of September 30, 2025, from $1.019 billion a year earlier, reflecting a growth of 22.4%[152] - Total liabilities increased 16% to $1.1 billion at September 30, 2025, primarily due to a $157.1 million increase in total deposits[194] - Stockholders' equity increased by 12% to $158.2 million compared to $140.7 million at December 31, 2024, primarily driven by net income generated in the first nine months of 2025[201] Non-Performing Assets - Non-performing assets were $37.5 million at September 30, 2025, representing 2.88% of total assets, up from $14.2 million (1.26% of total assets) at December 31, 2024[138] - Non-performing loans rose to $34.8 million as of September 30, 2025, compared to $14.2 million as of December 31, 2024[188] Interest Income and Expense - Interest income for the nine months ended September 30, 2025, was $61.6 million, an increase of $6.0 million compared to $55.6 million for the same period in 2024[153] - Interest expense for the three months ended September 30, 2025, was $8.6 million, an increase of $1.1 million from $7.5 million in 2024[153] - The average interest spread for the three months ended September 30, 2025, was 3.21%, down from 3.54% in the same period of 2024[152] Operational Expenses - Total noninterest expense for the three months ended September 30, 2025, rose 36% to $12.3 million, compared to $9.1 million for the same period in 2024[162] - Salaries and employee benefits expense increased by 20% to $6.6 million for the three months ended September 30, 2025, compared to $5.5 million in the same period of 2024[163] - Advertising and marketing expenses surged to $1.1 million for the three months ended September 30, 2025, compared to $135 thousand in the same period of 2024, largely due to one-time promotional expenses[166] Capital and Liquidity - The Company's Tier 1 Capital Leverage Ratio improved to 13.72% as of September 30, 2025, compared to 12.90% at December 31, 2024[205] - Total primary liquidity sources increased to $255.96 million as of September 30, 2025, up from $222.38 million at December 31, 2024[208] - The unused borrowing capacity with the Federal Home Loan Bank (FHLB) increased to approximately $101.9 million as of September 30, 2025, compared to $85.0 million at December 31, 2024[208] Cash Flow - The Company reported a net decrease in cash of $17.0 million from operating activities for the nine months ended September 30, 2025, primarily due to cash outflows for loan origination[211] - Cash and cash equivalents decreased by 17% to $103.4 million at September 30, 2025, from $124.1 million at December 31, 2024, due to cash outflows for loan growth[170] Investment and Other Assets - The investment security portfolio's available for sale securities increased by $20.2 million to $85.8 million at September 30, 2025, from $65.6 million at December 31, 2024[172] - Other assets increased by $2.6 million, or 13%, to $21.9 million at September 30, 2025, compared to $19.4 million at December 31, 2024[193]

Core Insights - GBank Financial Holdings Inc. has appointed Hilary R. Sledge-Sarnor as Executive Vice President, General Counsel, and Corporate Secretary, effective October 20, 2025 [1][2] Company Overview - GBank Financial Holdings Inc. is a bank holding company headquartered in Las Vegas, Nevada, listed on the Nasdaq Capital Market under the symbol "GBFH" [5] - The company operates a national payment and Gaming FinTech business, serving gaming clients across the U.S. and featuring the GBank Visa Signature® Card [5] - GBank is a top national SBA lender, operating across 40 states, with two full-service commercial branches in Las Vegas [5] Leadership Appointment - Ms. Sledge-Sarnor will oversee legal, corporate governance, and regulatory affairs, serving as a strategic advisor to executive management and the Board of Directors [2][3] - She has over 15 years of experience in banking regulation, corporate governance, and commercial lending, previously working at Greenberg Traurig, LLP and MUFG Bank [3][4] - The CEO of GBank expressed confidence in Ms. Sledge-Sarnor's ability to navigate complex regulatory environments, which is crucial for the company's growth [4]

Core Viewpoint - GBank Financial Holdings Inc. announced the resignation of Alan C. Sklar from its Board of Directors, effective October 28, 2025, marking the end of his nearly two-decade involvement with the company [1][2]. Company Overview - GBank Financial Holdings Inc. is a bank holding company based in Las Vegas, Nevada, listed on the Nasdaq under the symbol "GBFH" [4]. - The company operates a national payment and Gaming FinTech business, serving gaming clients across the U.S. and offering products like the GBank Visa Signature® Card [4]. - GBank is recognized as a top national SBA lender, operating in 40 states, and has two full-service commercial branches in Las Vegas [4]. Leadership Transition - Alan C. Sklar has been a founding director and played a crucial role in guiding GBank through its growth and transformation [2]. - The Chairman and CEO, Edward M. Nigro, expressed gratitude for Sklar's contributions, highlighting his integrity and commitment to the organization [3]. - Sklar's decision to resign is attributed to increasing demands at his law firm and a desire to spend more time in Israel with his family [3].

Core Insights - GBank Financial Holdings Inc. has appointed Timothy P. Herbst to its Board of Directors, effective October 28, 2025, bringing extensive executive leadership and industry expertise to the company [1][3]. Company Overview - GBank Financial Holdings Inc. is a bank holding company headquartered 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 featuring the GBank Visa Signature® Card tailored for the gaming and sports entertainment markets [4]. - GBank is recognized as a top national SBA lender, operating across 40 states, and has two full-service commercial branches in Las Vegas, Nevada [4]. Leadership Background - Timothy P. Herbst has been with GBank since 2007 and has nearly four decades of experience in executive leadership and entrepreneurship [1][2]. - He is the President of Terrible Herbst Inc., overseeing over 200 gas station and convenience store locations, and also leads Terribles Gaming, which operates approximately 3,000 gaming machines in Nevada [2]. - Herbst has held significant industry roles, including State President of the Nevada Petroleum Marketers Association and Director of Nevada First Bank from 1999 to 2006 [2]. Strategic Importance - The Chairman and CEO of GBank, Edward M. Nigro, emphasized that Herbst's operational leadership and strategic insight will be crucial for strengthening governance and expanding market presence [3]. - Herbst expressed his commitment to supporting the company's continued growth and innovation in his new role [3].

Financial Data and Key Metrics Changes - The company reported quarterly earnings of $4.3 million or $0.30 per diluted share, a decrease of $500,000 compared to the prior quarter earnings of $4.8 million [5] - Net revenue grew 13.5% to $20.2 million, driven by digital banking programs [9] - Interest income increased 4.9% to $13 million due to significant loan production [9] - Total assets increased by $69 million or 5.6% during the quarter, reaching over $1.3 billion for the first time [12] - Non-performing assets increased by $5.8 million to $10.4 million, representing 0.8% of total assets [13] Business Line Data and Key Metrics Changes - Guaranteed loan balances increased by $22.9 million to $260.5 million [9] - Net interchange income rose 56.7% over the prior quarter, with total transaction volume hitting $131 million, a 57% increase [10] - SBA and commercial lending achieved record loan production of $242 million, up $82 million over the prior quarter [10] - The GAAP gain on sale pricing increased by 15 basis points to 3.24% [11] Market Data and Key Metrics Changes - The company secured PLP numbers for 19 loans prior to the government shutdown, allowing for $48 million in loans in October [12] - The government shutdown has delayed additional growth in sales pending the reopening of federal operations [12] Company Strategy and Development Direction - The company aims to enhance its digital banking capabilities and become a leading digital bank and payments company [17] - A new incentive payment structure has been implemented to align loan originators with the bank's interests, ensuring a minimum 4% GAAP gain on sale going forward [11][19] - The company is focusing on partnerships with influencers to drive transaction volumes and reduce marketing costs compared to traditional methods [72][74] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges due to unusual operating expenses and fraud issues but expressed optimism about future growth driven by digital banking initiatives [4][16] - The company is actively addressing its CRA rating issues and has already quadrupled its loans in the last 60 days [22][23] - Management believes that the digital transformation and new payment systems will significantly enhance shareholder value [16][39] Other Important Information - The company has implemented several new fraud detection processes to mitigate risks associated with recent fraud incidents [6][8] - The bank is in the process of upgrading its technology capabilities to handle large volumes of transactions effectively [30][39] Q&A Session Summary Question: How long has the fraud been taking place, and when was it detected? - Fraud has been ongoing since the inception of the card, with significant issues detected starting in July [44] Question: Were the new non-accruals relatively recently funded loans or older? - None of the new non-accruals were recently funded; they were older loans, none less than 18 months [53] Question: Is the SBA pipeline essentially shut down right now? - Yes, the SBA pipeline is shut down until the government reopens, but the company has written $48 million in loans awaiting approval [55][56] Question: Are there any turnover issues with the new incentive structure? - There has been no turnover; key producers have committed to the changes [62][66] Question: How is the CEO succession search going? - There is currently no search for a new CEO [70]

Financial Performance - Net income for Q3 2025 was $4.3 million, or $0.30 per diluted share, including unusual expenses of $2.0 million after-tax, impacting earnings by $0.14 per share[1]. - Adjusted diluted earnings per share for Q3 2025 was $0.44, compared to $1.13 for the nine months ended September 30, 2025[3]. - Net revenue for Q3 2025 totaled $20.2 million, a 13.5% increase from $17.8 million in Q2 2025 and a 24.8% increase from $16.2 million in Q3 2024[14]. - Non-interest income for Q3 2025 was $7.2 million, up from $5.4 million in Q2 2025 and $3.9 million in Q3 2024[13]. - Net income for the three months ended September 30, 2025, was $4,308,000, a decrease of 9.4% from $4,755,000 in the previous quarter[62]. - Earnings per share (EPS) for the three months ended September 30, 2025, was $0.30, down from $0.33 in the previous quarter, reflecting a decline of 9.1%[62]. - The company reported a net income excluding unusual expenses of $6,333,000 for the three months ended September 30, 2025, compared to $4,979,000 in the previous quarter, marking a 27.2% increase[68]. Asset and Loan Growth - Total assets increased by 5.6% to $1.3 billion from $1.2 billion as of June 30, 2025, and by 24.2% from $1.0 billion as of September 30, 2024[20]. - Total loans, net of deferred fees and costs, were $940.6 million, an increase of $69.0 million from Q2 2025 and $159.6 million from Q3 2024[21]. - Total assets as of September 30, 2025, were $1,301,378,000, an increase from $1,232,424,000 at the end of the previous quarter[68]. - Loans sold during the three months ended September 30, 2025, totaled $110,820,000, an increase from $82,140,000 in the previous quarter, representing a 34.9% growth[68]. - SBA lending and commercial banking loan originations were $242.1 million, marking a record-breaking quarter compared to $160.7 million in Q2 2025[5]. - Commercial and industrial loans increased by 12.2% quarter-over-quarter, reaching $66,226,000, and rose by 23.8% year-over-year[60]. Credit Quality and Allowance for Losses - The allowance for credit losses totaled $10.6 million, representing 1.12% of total loans as of September 30, 2025, compared to 1.06% in Q2 2025[22]. - The provision for credit losses for loans totaled $2.2 million in Q3 2025, up from $1.1 million in Q2 2025 and $570 thousand in Q3 2024[30]. - Non-performing assets increased to $37.5 million as of September 30, 2025, from $18.4 million as of June 30, 2025, and $5.4 million as of September 30, 2024[33]. - The ratio of total non-performing assets to total assets was 2.88% as of September 30, 2025, compared to 1.49% as of June 30, 2025, and 0.52% as of September 30, 2024[36]. - The allowance for credit losses increased by 14.9% quarter-over-quarter, totaling $10,577,000, and rose by 33.3% year-over-year[60]. - The allowance for credit losses (ACL) to nonaccrual loans ratio was 31% as of September 30, 2025, compared to 147% in 2024[66]. Efficiency and Ratios - The Company's efficiency ratio was 61.1% for Q3 2025, compared to 58.5% in Q2 2025 and 56.0% in Q3 2024[16]. - The average pretax gain on sale of loans margin was 3.24% for Q3 2025, compared to 3.16% for Q2 2025 and 3.98% for Q3 2024[39]. - The average interest spread for the three months ended September 30, 2025, was 3.21%, compared to 3.08% in the previous quarter[63]. - The net interest margin for the three months ended September 30, 2025, was 4.35%, slightly up from 4.31% in the previous quarter[63]. - The efficiency ratio improved to 61.05% for the nine months ended September 30, 2025, compared to 60.79% in the same period of 2024[66]. Market and Economic Outlook - The company emphasizes that forward-looking statements are based on current expectations and are subject to various risks and uncertainties[57]. - Key risks include potential recession impacts, changes in market interest rates, and inflationary pressures in the United States[57]. - The company warns that actual results may differ materially from those anticipated due to unknown risks[57]. - The company does not undertake any obligation to update or revise forward-looking statements unless required by law[57]. - The press release includes a cautionary statement regarding the reliance on forward-looking statements[57].

Core Viewpoint - GBank Financial Holdings Inc. reported a net income of $4.3 million for Q3 2025, reflecting unusual expenses impacting earnings, while core revenues showed significant growth across various segments [1][5][18]. Financial Performance - Net income for Q3 2025 was $4.3 million, or $0.30 per diluted share, down from $4.8 million in Q2 2025 and $5.0 million in Q3 2024 [1][18]. - For the nine months ended September 30, 2025, net income was $13.5 million, or $0.93 per diluted share, compared to $13.4 million, or $1.02 per diluted share for the same period in 2024 [1]. - Adjusted diluted earnings per share for Q3 2025 was $0.44, excluding unusual expenses [3]. Revenue and Income Breakdown - Total net revenue for Q3 2025 was $20.2 million, a 13.5% increase from $17.8 million in Q2 2025 and a 24.8% increase from $16.2 million in Q3 2024 [15]. - Non-interest income rose to $7.2 million in Q3 2025, compared to $5.4 million in Q2 2025 and $3.9 million in Q3 2024 [14]. - Net interest income for Q3 2025 was $13.0 million, up 4.9% from Q2 2025 and 6.0% from Q3 2024 [8][10]. Loan and Asset Growth - SBA lending and commercial banking loan originations reached $242.1 million in Q3 2025, marking a record month in September with $92 million [37]. - Total loans, net of deferred fees and costs, increased to $940.6 million as of September 30, 2025, up from $871.6 million in Q2 2025 and $781.0 million in Q3 2024 [21]. - Total assets increased by 5.6% to $1.3 billion from Q2 2025 and by 24.2% from Q3 2024 [20]. Expense Management - Non-interest expenses for Q3 2025 were $12.3 million, up from $10.4 million in Q2 2025 and $9.1 million in Q3 2024, primarily due to unusual expenses [16]. - The efficiency ratio was 61.1% for Q3 2025, compared to 58.5% in Q2 2025 and 56.0% in Q3 2024 [16]. Credit Quality and Provisions - The provision for credit losses on loans was $2.2 million for Q3 2025, an increase from $1.1 million in Q2 2025 and $570 thousand in Q3 2024 [13][28]. - Non-performing assets totaled $37.5 million as of September 30, 2025, an increase from $18.4 million in Q2 2025 and $5.4 million in Q3 2024 [31]. Strategic Initiatives - The company is enhancing its gaming payments operations and has launched a new digital credit card application process to prevent fraud [38][39]. - The onboarding of BoltBetz with Distill Taverns and Terribles Gaming is expected to drive growth in the gaming sector [40].

Core Insights - GBank Financial Holdings Inc. has partnered with boxing legend Mike Tyson to promote the GBank Visa Signature® Card, aimed at providing a secure and rewarding payment option for gaming and sports enthusiasts [2][3] Company Overview - GBank Financial Holdings Inc. is a bank holding company based in Las Vegas, Nevada, listed on the Nasdaq under the symbol "GBFH" [4] - The company operates a national payment and Gaming FinTech business, serving clients across the U.S. with a focus on the gaming and sports entertainment markets [4] - GBank is recognized as a top national SBA lender, operating in 40 states and providing a range of banking products and services [5] Product Details - The GBank Visa Signature® Card is designed to facilitate fast and secure transactions for gaming and sports applications while offering cash rewards [3] - The partnership with Mike Tyson will be supported by a national promotional campaign emphasizing the card's speed, security, and flexibility [3] Mike Tyson's Role - Mike Tyson, a former heavyweight boxing champion and cultural entrepreneur, is expected to bring energy and innovation to the partnership, appealing to customers who value these traits [3][6]