GBank Financial Holdings Inc(US:GBFH)2025-10-28 23:41Financial 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].