GBank Financial Holdings Inc(US:GBFH)2026-01-28 21:12Financial 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]