GBank Financial Holdings Inc(US:GBFH)2025-11-12 14:16Financial 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]