Earnings Performance - GBank Financial Holdings Inc. reported quarterly earnings of $0.52 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, and up from $0.36 per share a year ago, representing an earnings surprise of +4.00% [1] - The company posted revenues of $20.72 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 1.81%, compared to revenues of $17.54 million in the same quarter last year [2] Stock Performance - GBank Financial Holdings Inc. shares have declined approximately 1.7% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $20.8 million, and for the current fiscal year, it is $2.53 on revenues of $97.4 million [7] - The outlook for the industry, specifically the Banks - Southwest sector, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Data and Key Metrics Changes - The company reported record quarterly earnings of $7.4 million or $0.52 per diluted share, an increase of $3.1 million compared to the prior quarter earnings of $4.3 million [43] - The net interest margin was 4.33% for 2025, compared to an industry average of approximately 3.7% [44] - The GAAP gain on sale increased from 3.24% to 3.98% in the fourth quarter, with expectations to trend above 4% in 2026 [45] Business Line Data and Key Metrics Changes - The credit card program experienced a transaction volume of approximately $99 million in the fourth quarter, down from $130 million in previous quarters due to fraud prevention measures [7][11] - The SBA division had a record year for production, with a significant increase in loan production and a healthy pipeline going into the new year [45] - The company implemented changes to incentivize higher spreads in loan sales, resulting in improved gain on sale income [31][32] Market Data and Key Metrics Changes - The company noted that credit cards account for about 30% of all payments in the U.S., which amounts to approximately $6 trillion annually [15] - The company is targeting a significant market share in the gaming fintech sector, with plans to onboard more gaming operators and slot machines [29][75] Company Strategy and Development Direction - The company is focusing on enhancing its gaming fintech operations, particularly through the Bold Bets product, which is expected to significantly grow non-interest-bearing deposits [44][20] - The company is also working on improving its credit card systems and fraud prevention measures to facilitate growth in transaction volumes [11][46] - The company aims to replace $400 million in costly deposits with more efficient SBA originations and guaranteed loan sales [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the credit card program, projecting a possible increase in originations from $400 million to $800 million within a year [58] - The management acknowledged challenges in the market, including competition from major platforms like FanDuel and DraftKings, but remains optimistic about capturing market share [59] - The company is adapting to recent interest rate changes and is focused on maintaining strong credit quality and liquidity [49][47] Other Important Information - The company has reorganized its credit card operations and engaged new leadership to enhance its technology capabilities [41][42] - The company sold off about $52 million in investment securities during the quarter to better protect against interest rate fluctuations [48] Q&A Session Summary Question: Can you provide insight into the credit card program's potential for interchange volumes this year? - Management indicated that despite previous challenges, they expect significant growth in credit card originations, potentially doubling from $400 million to $800 million [58][59] Question: What are the expectations for SBA loan volumes and gain on sale margins moving forward? - Management expressed confidence in continued growth for the SBA platform, supported by a strong broker network and incentivization strategies [60][62] Question: Was there any change in provisioning for the fourth quarter related to non-guaranteed NPAs? - Management confirmed adjustments to the Q factors for SBA loans, resulting in a reduction of reserves based on historical performance analysis [64][66]

Financial Data and Key Metrics Changes - The company reported record quarterly earnings of $7.4 million or $0.52 per diluted share, an increase of $3.1 million compared to the prior quarter earnings of $4.3 million [39] - The net interest margin was 4.33% for 2025, compared to an industry average of approximately 3.7% [40] - The GAAP gain on sale increased from 3.24% to 3.98% in the fourth quarter, with expectations to trend above 4% in 2026 [41] Business Line Data and Key Metrics Changes - The credit card program saw a transaction volume of approximately $99 million in the fourth quarter, down from $130 million in the previous quarters due to fraud prevention measures [6][10] - The SBA had a record year for production, with a significant increase in loan production and a healthy pipeline going into the new year [41] - The company implemented changes to incentivize higher spreads in loan sales, resulting in improved gain on sale income [28][41] Market Data and Key Metrics Changes - The company noted that credit cards account for about 30% of all payments in the U.S., which is approximately $6 trillion annually [13] - The company is targeting a significant market share in the gaming sector, with 150,000 slot machines in Nevada and 800,000 across the country [25][26] Company Strategy and Development Direction - The company is focusing on enhancing its Gaming FinTech operations, particularly through the BoltBetz product, which is expected to significantly grow non-interest-bearing deposits [40][24] - The company is also working on improving its credit card systems and fraud prevention measures to support future growth [10][42] - The company aims to replace $400 million in costly deposits with more SBA originations and guaranteed loan sales [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the credit card program, projecting a possible increase in originations from $400 million to $800 million within a year [54] - The management highlighted the importance of fraud prevention measures and the positive contribution of the credit card program to the bank's bottom line despite recent challenges [42] - The company is optimistic about the future of its SBA loans, citing strong collateral and a low default rate [33] Other Important Information - The company has reorganized its credit card operations and engaged new leadership to enhance its technology capabilities [37][38] - The company sold off about $52 million in investment securities during the quarter to better protect against interest rate changes [44] Q&A Session Summary Question: Can you provide insight into the potential for interchange volumes this year? - Management indicated that while they are not providing specific guidance, they expect significant growth in credit card originations, potentially doubling from $400 million to $800 million [54][55] Question: Should we expect continued improvement in gain on sale margins for the SBA platform? - Management confirmed that they expect growth in SBA volumes and have incentivized their team to achieve higher GAAP gain on sale margins [58][59] Question: Was there any change in the Q factor for the ACL that drove the negative provision? - Management noted adjustments in the Q factors based on historical analysis of the SBA loans, leading to a reduction in reserves [60][61]

Financial Data and Key Metrics Changes - The company reported record quarterly earnings of $7.4 million or $0.52 per diluted share, an increase of $3.1 million compared to the prior quarter earnings of $4.3 million [43] - The net interest margin was 4.33% for 2025, compared to an industry average of approximately 3.7% [44] - The GAAP gain on sale increased from 3.24% to 3.98% in the fourth quarter, with expectations to trend above 4% in 2026 [45] Business Line Data and Key Metrics Changes - The credit card program experienced a transaction volume of approximately $99 million in the fourth quarter, down from $130 million in the previous quarter due to fraud prevention measures [6][11] - The SBA division had a record year for production, with a healthy pipeline going into the new year [45] - The company anticipates significant growth in non-interest-bearing deposits from the Bold Bets PPA product, which is now launched [44] Market Data and Key Metrics Changes - Credit cards account for about 30% of all payments in the U.S., which amounts to approximately $6 trillion annually [15] - The company noted that there are about 28 legal sports betting apps across the country, with customers using 20 of them [13] Company Strategy and Development Direction - The company is focusing on enhancing its gaming fintech operations, particularly through the Bold Bets and PPA product, which allows players to create and fund wagering accounts via a mobile app [18][19] - A significant reorganization of the credit card operations has been undertaken to improve efficiency and customer engagement [41] - The company aims to replace $400 million in deposits with more SBA originations and guaranteed loan sales [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to handle growth in the credit card program, projecting potential growth from $400 million to $800 million in originations within a year [59] - The company is optimistic about the future of the Bold Bets app, noting that it has received positive feedback from users [76] - Management highlighted the importance of fraud prevention measures and the successful implementation of new systems to enhance customer onboarding [46] Other Important Information - The company sold off about $52 million in investment securities during the quarter, which included both available for sale and held to maturity investments [47] - Recent interest rate changes have tightened spreads, prompting management to move into securities that better protect the organization in a declining rate environment [48] Q&A Session Summary Question: Can you provide insight into the potential for credit card interchange volumes this year? - Management indicated that while they are not providing specific guidance, they expect significant growth, potentially doubling from $400 million to $800 million in originations [59][60] Question: Should we expect continued improvement in gain on sale margins for the SBA platform? - Management confirmed that they expect growth to continue, supported by incentivizing their team with stock options to achieve higher GAAP gain on sale [62] Question: Was there any change in the Q factor for the ACL that drove the negative provision? - Management noted adjustments to the Q factors based on historical analysis, which indicated that additional reserves on the SBA portfolio were no longer necessary [65][66]

Core Viewpoint - GBank Financial Holdings Inc. reported record net income for Q4 2025, achieving $7.4 million or $0.51 per diluted share, driven by strong growth in SBA lending and credit card transactions despite some one-time expenses and challenges from a government shutdown [1][5][18]. Financial Performance - For Q4 2025, the adjusted net income was $7.6 million, or $0.52 adjusted diluted earnings per share, reflecting a strong performance despite unusual items impacting the results [1][4]. - The net income for the year ended December 31, 2025, was $20.9 million, or $1.44 per diluted share, an increase from $18.6 million, or $1.39 per diluted share, in 2024 [2][4]. - Total net revenue for Q4 2025 was $20.7 million, a 2.7% increase from Q3 2025 and an 18.0% increase from Q4 2024 [15]. Asset Quality - Non-performing assets totaled $37.4 million as of December 31, 2025, with a ratio of 2.75% of total assets, showing a slight decrease from the previous quarter [30][32]. - The allowance for credit losses was $9.9 million, representing 1.03% of total loans, a decrease from 1.12% in the prior quarter [22]. Loan and Deposit Growth - Total loans increased to $959.3 million as of December 31, 2025, up from $940.6 million in the previous quarter and $816.0 million a year earlier, driven by growth in commercial and industrial loans [21]. - Deposits reached $1.1 billion, an increase of $50.5 million from the previous quarter and $207.6 million from the previous year [23]. Operational Highlights - SBA loan originations totaled $126.4 million in Q4 2025, despite a government shutdown that impacted approvals, showing resilience compared to $120.0 million in Q4 2024 [34]. - The company achieved a gain on loan sales margin of 3.93% in Q4 2025, an improvement from 3.24% in Q3 2025, indicating effective management of loan spreads [36]. Strategic Initiatives - The company is enhancing its credit card platform and has successfully integrated with various fraud detection services, resulting in zero fraud applications in the last 75 days [37]. - The BoltBetz Prepaid Access/Slot program has been approved, marking a significant step in the company's gaming initiatives [39]. Subsequent Events - On January 14, 2026, the company completed a private placement of $11.0 million in subordinated notes, intended for general corporate purposes and refinancing existing debt [40].

Financial Performance - Record net income of $7.4 million for Q4 2025, or $0.51 per diluted share, an increase from $4.3 million in Q3 2025 [21] - Adjusted net income for the year ended December 31, 2025 was $24.1 million, or $1.66 adjusted diluted earnings per share, compared to $18.6 million, or $1.39 per diluted share in 2024 [2] - Net revenue for Q4 2025 totaled $20.7 million, a 2.7% increase from Q3 2025 and an 18.0% increase from Q4 2024 [18] - Net income for Q4 2025 was $7.396 million, representing a 72.5% increase compared to $4.308 million in Q3 2025 [60] - Adjusted diluted earnings per share excluding unusual items for the year ended December 31, 2025, was $1.66, up from $1.41 in the previous year, representing a growth of 17.7% [66] Asset and Liability Management - Total assets increased 4.5% to $1.4 billion as of December 31, 2025, up 21.1% from $1.1 billion a year earlier [23] - Total liabilities increased to $1,193,736,000, a 4.4% increase from the previous quarter and a 21.6% increase year-over-year [58] - Total assets increased to $1,336 billion in Q4 2025, compared to $1.248 billion in Q3 2025 [61] - Total deposits reached $1.1 billion, an increase of $50.5 million from September 30, 2025, and up $207.6 million from $935.1 million a year earlier [27] - Total deposits rose to $1,142,695,000, marking a 4.6% increase from the previous quarter and a 22.2% increase year-over-year [58] Loan and Credit Quality - Total loans, net of deferred fees and costs, were $959.3 million as of December 31, 2025, an increase of $143.3 million from the previous year [24] - The allowance for credit losses was $9.9 million as of December 31, 2025, representing 1.03% of total loans [25] - The Company recorded a reversal for credit losses on loans of $130 thousand in Q4 2025, compared to $2.2 million provision expense in Q3 2025 [15] - The ratio of non-performing assets to total assets was 2.75% as of December 31, 2025, a decrease from 2.88% in the previous quarter but an increase from 1.26% a year ago [34] - The allowance for credit losses (ACL) was $10,577 thousand, representing 1.12% of total loans, consistent with the previous quarter's ratio [64] Income Sources - Non-interest income was $7.3 million for Q4 2025, compared to $5.8 million for Q4 2024, driven by increased credit card transaction volume [17] - Total interest income for Q4 2025 reached $22.739 million, an increase of 5.2% from $21.622 million in Q3 2025 [60] - Net interest income after provision for credit losses was $13.637 million, up 26.5% from $10.779 million in Q3 2025 [60] - Non-interest income totaled $7.263 million, a slight increase from $7.177 million in Q3 2025 [60] Growth Metrics - SBA loan originations reached a record $576.0 million for the year, up from $501.9 million in 2024, indicating strong growth potential [8] - SBA loan originations totaled $126.4 million in Q4 2025, down from a record $242.1 million in Q3 2025 but up from $120.0 million in Q4 2024 [39] - The company reported a significant increase in consumer loans, which rose by 563.0% year-over-year to $11,358,000 [58] Efficiency and Profitability - Return on average assets was 2.20% for Q4 2025, compared to 1.37% for Q3 2025, and return on average stockholders' equity was 18.03% compared to 10.89% for Q3 2025 [6] - The efficiency ratio for Q4 2025 was 61.05%, an increase from 55.31% in Q3 2025, suggesting higher operational costs relative to revenue [64] - The average yield on earning assets decreased to 7.20% in 2025 from 7.80% in 2024, while the cost on interest-bearing liabilities also decreased to 4.04% from 4.46% [62] Shareholder Value - Stockholders' equity increased to $165.8 million as of December 31, 2025, compared to $158.2 million in the prior quarter and $140.7 million a year earlier, driven by retained earnings from net income [31] - Book value per common share increased to $11.52 in Q4 2025 from $11.07 in Q3 2025, reflecting a positive trend in shareholder equity [64]

Core Viewpoint - GBank Financial Holdings Inc. has appointed Jason Amos as Executive Vice President and Chief Technology Officer to lead the bank's technology strategy and modernization efforts towards a digital-first operating model [1][4]. Group 1: Appointment and Background - Jason Amos brings over twenty years of experience in building and leading large-scale technology platforms at global enterprises such as Microsoft, Intel Security (McAfee), and Dell, along with roles as Chief Technology Officer in various technology and fintech ventures [2]. - His expertise includes cloud platforms, cybersecurity, payments infrastructure, and emerging financial technologies [2]. Group 2: Responsibilities and Focus Areas - In his new role, Amos will oversee technology strategy, engineering execution, and platform governance, with an immediate focus on modernizing ACH processing, increasing automation, and enhancing operational resilience [3]. - He will also lead GBank's approach to incorporating digital assets and blockchain technologies, emphasizing controlled, non-custodial, and audit-aligned architectures [3]. Group 3: Company Overview - GBank Financial Holdings Inc. is headquartered in Las Vegas, Nevada, and is listed on the Nasdaq Capital Market under the symbol "GBFH" [5]. - The company serves gaming clients across the U.S. and features the GBank Visa Signature Card tailored for the gaming and sports entertainment markets, while also being a top national SBA lender operating in 40 states [5].

Core Viewpoint - GBank Financial Holdings Inc. is set to release its fourth quarter 2025 financial results on January 28, 2026, and will host a quarterly earnings call on the same day [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" [2]. - 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 [2]. - 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 [2]. Investor Information - The company regularly posts important information for investors on its website, which is used for disclosing material non-public information and complying with SEC disclosure obligations [3]. - Investors are encouraged to monitor the company's website along with press releases, SEC filings, public conference calls, presentations, and webcasts for updates [3].

Core Viewpoint - GBank Financial Holdings Inc has completed a private placement of $11.0 million in subordinated notes to enhance its capital structure and refinance existing debt [1][2]. Group 1: Financial Details - The private placement consists of 7.25% Fixed-to-Floating Rate Subordinated Notes due 2036, with an initial fixed interest rate of 7.25% until January 15, 2031, after which it will reset to a floating rate [1][3]. - The company plans to use the net proceeds for general corporate purposes, including refinancing $6.5 million of existing subordinated debt issued in 2020 [2][3]. - The Notes qualify as Tier 2 capital for regulatory purposes and are redeemable by the company starting January 15, 2031, at 100% of the principal amount plus accrued interest [3]. Group 2: Company Background - GBank Financial Holdings Inc is headquartered in Las Vegas, Nevada, and is listed on the Nasdaq Capital Market under the symbol "GBFH" [6]. - The company operates a national payment and Gaming FinTech business, serving gaming clients across the U.S. and is a top national SBA lender operating in 40 states [6]. - GBank provides a range of banking products and services through its two full-service commercial branches in Las Vegas, targeting small businesses, middle-market enterprises, public entities, and affluent individuals [6].

Core Insights - A Las Vegas bank, GBank, is advancing its strategy to leverage cashless payments in gambling through the approval of the BoltBetz system by the Nevada Gaming Control Board [1][4] - The BoltBetz app enables users to transfer funds from a GBank-controlled digital wallet to slot machines, creating a new source of non-interest-bearing deposits for GBank [2][3] Company Overview - GBank, with assets of $1.3 billion, is positioned to benefit from the BoltBetz system, which is expected to enhance its deposit base and earnings potential [1][3] - The bank's leadership includes Ed Nigro, who has extensive ties to the casino industry and was recently appointed CEO [15][16] Product and Technology - The BoltBetz app will be available on major platforms and allows for seamless fund transfers between players' accounts and slot machines, distinguishing it from other cashless gaming platforms [2][5] - GBank is upgrading its internal technology to manage the anticipated increase in transaction volume as BoltBetz is implemented [7] Market Strategy - The initial rollout of BoltBetz is limited to nine Las Vegas taverns, but there are plans for broader expansion, supported by strategic partnerships with gaming operators [1][4] - Former boxing champion Mike Tyson is involved as a strategic investor and promotional partner, enhancing the app's visibility [4] Regulatory Environment - The approval from the Nevada Gaming Control Board is seen as a significant advantage for future expansion into other states, although regulatory approval is required in each state [8][9] - The cashless nature of BoltBetz may provide regulatory benefits, particularly in anti-money-laundering efforts [11] Financial Implications - GBank anticipates that the partnership with BoltBetz will lead to significant deposit growth, which will support its banking operations, including its Small Business Administration lending program [13] - GBank aims to increase its SBA loan origination to over $600 million in the 2026 fiscal year [14]