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].

LAS VEGAS, Oct. 27, 2025 (GLOBE NEWSWIRE) -- GBank Financial Holdings Inc. (the “Company”) (Nasdaq: GBFH), the parent company of GBank, announced today that boxing legend and global icon Mike Tyson has joined GBank as a promotional partner for the GBank Visa Signature® Card designed to deliver a secure, seamless, and rewarding payment option for gaming and sports enthusiasts. “This credit card gives people what they’ve been asking for,” said Mike Tyson, “a simple, secure way to fund gaming and sports apps ...

Core Points - GBank Financial Holdings Inc. has rescheduled the release date for its third quarter 2025 financial results to after the market closes on October 28, 2025, from the previously announced date of October 27, 2025 [1] - The quarterly earnings call will still take place on October 29, 2025, at 10:00 a.m. PST, and will be 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 platform for disclosing material non-public information and complying with SEC regulations [5] - Investors are encouraged to monitor the company's website along with press releases, SEC filings, public conference calls, presentations, and webcasts for updates [5]

LAS VEGAS, Oct. 23, 2025 (GLOBE NEWSWIRE) -- GBank Financial Holdings Inc. (the "Company") (Nasdaq: GBFH), the parent company for GBank (the "Bank"), today announced it plans to release its third quarter 2025 financial results after the market closes on Monday, October 27, 2025, and will host its quarterly earnings call on Wednesday, October 29, 2025, at 10:00 a.m., PST. Interested parties can participate remotely via Internet connectivity. There will be no physical location for attendance. Interested parti ...

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]