GBank Financial Holdings Inc.
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 12, 2025
GBFH$15.88+2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0000950170-25-107361
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001193125-25-276230
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 141 previous paragraphs and 141 current paragraphs.
91 unchanged; 45 reworded; 5 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
On July 4, 2025, new federal tax legislation was signed into law. The legislation includes a range of tax reform measures, including the extension and modification of certain provisions originally enacted under the Tax Cuts and Jobs Act. Key changes include the restoration of 100% bonus depreciation, immediate expensing for domestic research and development expenditures, and modifications to international tax rules. The impact of this legislation is not expected to be material to the Company’s consolidated financial position and results of operations for the year ending December 31, 2025.
Current report
Loan growth of 15% since December 31, 2024.
Current report
Net interchange fees of $2.4 million compared to $284 thousand during the third quarter of 2024.
Current report
Total assets increased 16% to $1.3 billion at September 30, 2025 compared to $1.1 billion at December 31, 2024, primarily due to increases in net loans of $124.6 million, $34.1 million in loans held for sale, and $15.5 million in bank owned life insurance related to a bank owned life insurance investment of $15 million during the third quarter of 2025.
Current report
Other liabilities totaled $18.9 million at September 30, 2025, an increase of $3.3 million, or 21%, when compared to $15.7 million at December 31, 2024. This increase was driven by growth of the organization driving increases in other miscellaneous liabilities.
Removed paragraphs (5)
Previous report
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law by President Trump, which includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key provisions from the Tax Cuts and Jobs Act of 2017 and expanding certain incentives from the Inflation Reduction Act of 2022 while accelerating the phase-out of others. The Company continues to evaluate the OBBBA but does not anticipate that the OBBBA will have a material impact on the Company’s Consolidated Financial Statements. As the legislation was signed into law after the close of the second quarter of 2025, the impacts are not included in the Company’s operating results for the three and six months ended June 30, 2025.
Previous report
Loan growth of $55.6 million, or 7% since December 31, 2024.
Previous report
Net interchange fees of $1.5 million compared to $146 thousand during the second quarter of 2024.
Previous report
Total assets increased 10% to $1.23 billion at June 30, 2025 compared to $1.12 billion at December 31, 2024, primarily due to increases in net loans of $55.7 million as well as cash and equivalents of $19.1 million.
Previous report
Other liabilities totaled $16.0 million at June 30, 2025, an increase of $307 thousand, or 2%, when compared to $15.7 million at December 31, 2024. This decrease was driven by a reduction in accrued interest payable due to an overall decline in the cost of interest-bearing deposits during the first six months of 2025.
Reworded paragraphs (45)
Previous wording
The following table presents a summary of the Company's earnings and selected performance ratios for the three- and six-month periods presented:
Current wording
The following table presents a summary of the Company's earnings and selected performance ratios for the three- and nine-month periods presented:
Previous wording
Net income of $4.8 million and diluted earnings per share of $0.33, compared to $4.7 million and diluted earnings per share of $0.36 for the second quarter of 2024.
Current wording
Net income of $4.3 million and diluted earnings per share of $0.30, compared to $5.0 million and diluted earnings per share of $0.38 for the third quarter of 2024.
Previous wording
Principal balances of loans sold of $82.1 million compared to principal balances of loans sold of $77.9 million of during the three months ended June 30, 2024.
Current wording
Principal balances of loans sold of $110.8 million compared to principal balances of loans sold of $71.4 million of during the three months ended September 30, 2024.
Previous wording
On-balance sheet guaranteed loans totaled $237.6 million as of June 30, 2025 compared to $233.9 million at December 31, 2024.
Current wording
On-balance sheet guaranteed loans totaled $260.5 million as of September 30, 2025 compared to $233.9 million at December 31, 2024.
Previous wording
Non-performing assets of $18.4 million at June 30, 2025 representing 1.49% of total assets compared to $14.2 million of non-performing assets at December 31, 2024, representing 1.26% of total assets.
Current wording
Non-performing assets of $37.5 million at September 30, 2025 representing 2.88% of total assets compared to $14.2 million of non-performing assets at December 31, 2024, representing 1.26% of total assets.
Previous wording
Average balances, interest income or expense, and the interest yield or rate for the Company’s interest-sensitive assets and liabilities are presented in the tables below for the three- and six-month periods presented. Average balances are calculated on a daily basis. The Company had no tax equivalent adjustments for the three and six months ended June 30, 2025 and 2024.
Current wording
Average balances, interest income or expense, and the interest yield or rate for the Company’s interest-sensitive assets and liabilities are presented in the tables below for the three- and nine-month periods presented. Average balances are calculated on a daily basis. The Company had no tax equivalent adjustments for the three and nine months ended September 30, 2025 and 2024.
Previous wording
For the three months ended June 30, 2025 and 2024, the average balance of loans, net includes average non-accrual loan balances of $20.5 million and $6.2 million, respectively.
Current wording
For the three months ended September 30, 2025 and 2024, the average balance of loans, net includes average non-accrual loan balances of $30.5 million and $5.6 million, respectively.
Previous wording
For the six months ended June 30, 2025 and 2024, the average balance of loans, net includes average non-accrual loan balances of $19.1 million and $5.0 million, respectively.
Current wording
For the nine months ended September 30, 2025 and 2024, the average balance of loans, net includes average non-accrual loan balances of $22.9 million and $5.2 million, respectively.
Previous wording
The following table presents the effects of changing rates and volumes on net interest income for the three- and six-month periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated to volume.
Current wording
The following table presents the effects of changing rates and volumes on net interest income for the three- and nine-month periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated to volume.
Previous wording
For the six months ended June 30, 2025, interest income was $40.0 million, an increase of $4.1 million compared to $35.9 million for the six months ended June 30, 2024. For the three months ended June 30, 2025, interest income was $20.6 million, an increase of $2.1 million compared to $18.5 million for the three months ended June 30, 2024. The increases in interest income when comparing the three- and six-month periods ended June 30, 2025 to the same periods in 2024 are primarily due to increases in average interest-earning assets, partially offset by yield reductions on adjustable-rate loans, securities, and other liquid assets as a result of the 100 basis point decrease in the target federal funds rate by the Federal Reserve during the second half of 2024.
Current wording
For the nine months ended September 30, 2025, interest income was $61.6 million, an increase of $6.0 million compared to $55.6 million for the nine months ended September 30, 2024. For the three months ended September 30, 2025, interest income was $21.6 million, an increase of $1.9 million compared to $19.7 million for the three months ended September 30, 2024. The increases in interest income when comparing the three- and nine-month periods ended September 30, 2025 to the same periods in 2024 are primarily due to increases in average interest-earning assets, partially offset by yield reductions on adjustable-rate loans, securities, and other liquid assets as a result of the 100 basis point decrease in the target federal funds rate by the Federal Reserve during the second half of 2024.
Previous wording
Interest expense was $15.7 million for the six months ended June 30, 2025, an increase of $2.0 million compared to $13.7 million for the six months ended June 30, 2024. Interest expense was $8.2 million for the three months ended June 30, 2025, an increase of $1.1 million compared to $7.1 million for the three months ended June 30, 2024. The increase in interest expense when comparing the three and six months ended June 30, 2025 to the same periods in 2024 was driven by increases in average interest-bearing liabilities to fund asset growth.
Current wording
Interest expense was $24.3 million for the nine months ended September 30, 2025, an increase of $3.1 million compared to $21.2 million for the nine months ended September 30, 2024. Interest expense was $8.6 million for the three months ended September 30, 2025, an increase of $1.1 million compared to $7.5 million for the three months ended September 30, 2024. The increase in interest expense when comparing the three and nine months ended September 30, 2025 to the same periods in 2024 was driven by increases in average interest-bearing liabilities to fund asset growth.
Previous wording
For the second quarter of 2025, the Company’s net interest margin decreased to 4.31%, compared to 4.82% for the second quarter of 2024. For the six months ended June 30, 2025, the Company's net interest margin decreased to 4.39%, compared to 4.83% for the six months ended June 30, 2024. The decrease in net interest margin for the three and six months ended June 30, 2025 when compared to the same periods in 2024 is reflective of the lower market interest rate environment as explained in the above paragraphs.
Current wording
For the nine months ended September 30, 2025, the Company's net interest margin decreased to 4.37%, compared to 4.89% for the nine months ended September 30, 2024. For the third quarter of 2025, the Company’s net interest margin decreased to 4.35%, compared to 5.00% for the third quarter of 2024. The decrease in net interest margin for the three and nine months ended September 30, 2025 when compared to the same periods in 2024 is reflective of the lower market interest rate environment as explained in the above paragraphs.
Previous wording
The provision for credit losses in each period is reflected as a reduction in earnings for that period and includes amounts related to funded loans and unfunded loan commitments. The provision is equal to the amount required to maintain the ACL at a level that is adequate to absorb estimated lifetime credit losses inherent in the loan portfolio based on remaining contractual maturity, adjusted for estimated prepayments as of each period end. The Company's CECL models incorporate historical experience, current conditions, and reasonable and supportable forecasts in measuring expected credit losses. For the three and six months ended June 30, 2025, the Company recorded a provision for credit losses of $1.1 million and $1.8 million, respectively, compared to $295 thousand and $315 thousand for the three and six months ended June 30, 2024, respectively. The provision for credit losses for the three and six months ended June 30, 2025 is primarily reflective of net charge-offs of $870 thousand and $1.7 million, respectively, and loan growth.
Current wording
The provision for credit losses in each period is reflected as a reduction in earnings for that period and includes amounts related to funded loans and unfunded loan commitments. The provision is equal to the amount required to maintain the ACL at a level that is adequate to absorb estimated lifetime credit losses inherent in the loan portfolio based on remaining contractual maturity, adjusted for estimated prepayments as of each period end. The Company's CECL models incorporate historical experience, current conditions, and reasonable and supportable forecasts in measuring expected credit losses. For the three and nine months ended September 30, 2025, the Company recorded a provision for credit losses of $2.2 million and $4.0 million, respectively, compared to $570 thousand and $853 thousand for the three and nine months ended September 30, 2024, respectively. The provision for credit losses for the three and nine months ended September 30, 2025 is primarily reflective of net charge-offs of $836 thousand and $2.5 million, respectively, and non-guaranteed loan growth.
Previous wording
For the three months ended June 30, 2025, noninterest income totaled $5.4 million compared to noninterest income $4.2 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, noninterest income totaled $10.8 million compared to noninterest income $6.6 million for the six months ended June 30, 2024.
Current wording
For the three months ended September 30, 2025, noninterest income totaled $7.2 million compared to noninterest income $3.9 million for the three months ended September 30, 2024. For the nine months ended September 30, 2025, noninterest income totaled $18.0 million compared to noninterest income $10.5 million for the nine months ended September 30, 2024.
Previous wording
Gain on sale of loans totaled $2.6 million for the second quarter of 2025 compared to $3.2 million for the second quarter of 2024. Gain on sale of loans totaled $5.1 million for the six months ended June 30, 2025 compared to $5.2 million for the same period in 2024. The decrease in gain on sale of loans for the three- and six-month periods ended June 30, 2025 was due to less favorable secondary market pricing during the six months ended June 30, 2025 compared to the same period of 2024.
Current wording
Gain on sale of loans totaled $3.6 million for the third quarter of 2025 compared to $2.8 million for the third quarter of 2024. Gain on sale of loans totaled $8.7 million for the nine months ended September 30, 2025 compared to $8.1 million for the same period in 2024. The increase in gain on sale of loans for the three- and nine-month periods ended September 30, 2025 was due to higher volumes of loans sold, partially offset by less favorable secondary market pricing, during the three and nine months ended September 30, 2025 when compared to the same period of 2024.
Previous wording
Net interchange fees totaled $1.5 million for the three months ended June 30, 2025 compared to $146 thousand for the three months ended June 30, 2024. Net interchange fees totaled $3.5 million for the six months ended June 30, 2025, compared to $167 thousand for the same period in 2024. The increase in net interchange fees when comparing the three months and six months ended June 30, 2025 to the same periods in 2024 was attributable to transaction volume growth within GBank’s Visa Signature® Card product.
Current wording
Net interchange fees totaled $2.4 million for the three months ended September 30, 2025 compared to $284 thousand for the three months ended September 30, 2024. Net interchange fees totaled $5.9 million for the nine months ended September 30, 2025, compared to $451 thousand for the same period in 2024. The increase in net interchange fees when comparing the three months and nine months ended September 30, 2025 to the same periods in 2024 was attributable to transaction volume growth within GBank’s Visa Signature® Card product.
Previous wording
Loan servicing income increased $216 thousand from $534 thousand for the three months ended June 30, 2024 to $750 thousand for the three months ended June 30, 2025. Loan servicing income increased $859 thousand from $594 thousand for the six months ended June 30, 2025 to $1.5 million for the six months ended June 30, 2025. The increase in loan servicing income when comparing the three and six months ended June 30, 2025 to the same periods in 2024 was the result of both (i) higher average balances of loans serviced by GBank during 2025, and (ii) the first quarter of 2024 reflecting loan servicing asset writeoffs of $401 thousand due to the repurchase of the guaranteed portion of previously sold SBA loans.
Current wording
Loan servicing income increased $196 thousand from $566 thousand for the three months ended September 30, 2024 to $762 thousand for the three months ended September 30, 2025. Loan servicing income increased $1.1 million from $1.2 million for the nine months ended September 30, 2024 to $2.2 million for the nine months ended September 30, 2025. The increase in loan servicing income when comparing the three and nine months ended September 30, 2025 to the same periods in 2024 was the result of both (i) higher average balances of loans serviced by GBank during 2025, and (ii) the first quarter of 2024 reflecting loan servicing asset writeoffs of $401 thousand due to the repurchase of the guaranteed portion of previously sold SBA loans.
Previous wording
For the three months ended June 30, 2025, noninterest expense increased 14% to $10.4 million, compared to $9.1 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, noninterest expense increased 22% to $21.3 million, compared to $17.5 million for the six months ended June 30, 2024.
Current wording
For the three months ended September 30, 2025, noninterest expense increased 36% to $12.3 million, compared to $9.1 million for the three months ended September 30, 2024. For the nine months ended September 30, 2025, noninterest expense increased 27% to $33.6 million, compared to $26.6 million for the nine months ended September 30, 2024.
Previous wording
Salaries and employee benefits expense totaled $6.2 million for the three months ended June 30, 2025, an increase of $483 thousand or 8% when compared to $5.7 million for the second quarter of 2024. Salaries and benefits expense totaled $12.6 million for the six months ended June 30, 2025, an increase of $1.6 million or 14% when compared to $11.0 million for the six months ended June 30, 2024. These increases are attributable to both (i) increases in employee salaries and benefits expenses resulting from an increase in full-time equivalent employees from 155 at June 30, 2024 to 188 at June 30, 2025, and (ii) higher stock-based compensation expense due to increases in grant date fair value of recent stock awards.
Current wording
Salaries and employee benefits expense totaled $6.6 million for the three months ended September 30, 2025, an increase of $1.1 million or 20% when compared to $5.5 million for the third quarter of 2024. Salaries and benefits expense totaled $19.2 million for the nine months ended September 30, 2025, an increase of $2.7 million or 16% when compared to $16.5 million for the nine months ended September 30, 2024. These increases are attributable to both (i) increases in employee salaries and benefits expenses resulting from an increase in full-time equivalent employees from 159 at September 30, 2024 to 187 at September 30, 2025, (ii) non-recurring severance, benefits, and stock compensation expenses totaling $900 thousand associated with the resignation of the Company's CEO during the third quarter of 2025 as previously reported on Form 8-K with the Securities and Exchange Commission on September 3, 2025, and (iii) higher stock-based compensation expense due to increases in grant date fair value of recent stock awards.
Previous wording
Data processing expense increased $627 thousand, or 89%, from $706 thousand for the three months ended June 30, 2024 to $1.3 million for the three months ended June 30, 2025. Data processing expense increased $1.2 million, or 78%, from $1.5 million for the six months ended June 30, 2024 to $2.7 million for the six months ended June 30, 2025. The year over year increases were due to both (i) higher costs from transactional-based charges given the volume increases in loans and deposits over the last twelve months, and (ii) investments to enhance data management and security capabilities responsive to both the larger company profile and the increasing complexity of information technology management.
Current wording
Data processing expense increased $707 thousand, or 76%, from $930 thousand for the three months ended September 30, 2024 to $1.6 million for the three months ended September 30, 2025. Data processing expense increased $1.9 million, or 77%, from $2.5 million for the nine months ended September 30, 2024 to $4.4 million for the nine months ended September 30, 2025. The year over year increases were due to both (i) higher costs from transactional-based charges given the volume increases in loans and deposits over the last twelve months, and (ii) investments to enhance data management and security capabilities responsive to both the larger company profile and the increasing complexity of information technology management.
Previous wording
Audits and exams expense totaled $397 thousand for the three months ended June 30, 2025, an increase of $244 thousand when compared to $153 thousand for the second quarter of 2024. Audits and exams expense totaled $894 thousand for the six months ended June 30, 2025, an increase of $656 thousand when compared to $238 thousand during the same period of 2024. The increases in audits and exams expense reflects certain non-recurring professional, legal and audit fees associated with the preparation of filings made with the U.S. Securities and Exchange Commission for the registration of its shares of common stock and listing on the Nasdaq Capital Market, which totaled $290 thousand and $1.0 million for the three and six months ended June 30, 2025, respectively.
Current wording
Audits and exams expense totaled $262 thousand for the three months ended September 30, 2025, an increase of $38 thousand when compared to $224 thousand for the third quarter of 2024. Audits and exams expense totaled $1.2 million for the nine months ended September 30, 2025, an increase of $695 thousand when compared to $462 thousand during the same period of 2024. The increases in audits and exams expense reflects certain non-recurring professional, legal and audit fees associated with the preparation of filings made with the U.S. Securities and Exchange Commission for the registration of its shares of common stock and listing on the Nasdaq Capital Market, which totaled $30 thousand and $1.1 million for the three and nine months ended September 30, 2025, respectively.
Previous wording
Advertising and marketing expense increased $287 thousand to $371 thousand during the second quarter of 2025, compared to $84 thousand during the second quarter of 2025. Advertising and marketing expense increased $522 thousand to $735 thousand during the six months ended June 30, 2025, compared to $213 thousand during the same period in 2024. The increase in advertising and marketing expense was largely attributable to advertising, marketing, and referral campaigns associated with the credit card program.
Current wording
Advertising and marketing expense increased $1.0 million to $1.1 million during the third quarter of 2025, compared to $135 thousand during the third quarter of 2025. Advertising and marketing expense increased $1.5 million to $1.9 million during the nine months ended September 30, 2025, compared to $391 thousand during the same period in 2024. The increase in advertising and marketing expense was largely attributable to one-time promotional expenses totaling $728 thousand related to an early generation third party non-gaming credit card marketing agreement that was terminated during the third quarter of 2025.
Previous wording
Income tax expense was $1.5 million for the three months ended June 30, 2025, an increase of 5% or $75 thousand compared to $1.4 million for the three months ended June 30, 2024. Income tax expense was $2.7 million for the six months ended June 30, 2025, an increase of 7% or $187 thousand compared to $2.5 million for the six months ended June 30, 2024. The increase in income tax expense during the three and six months ended June 30, 2025 was primarily due to higher pre-tax earnings.
Current wording
Income tax expense was $1.3 million for the three months ended September 30, 2025, a decrease of 15% or $231 thousand compared to $1.5 million for the three months ended September 30, 2024. Income tax expense was $4.0 million for each of the nine months ended September 30, 2025 and 2024. The decrease in income tax expense during the three months ended September 30, 2025 was primarily due to lower pre-tax earnings.
Previous wording
The effective tax rate for the three and six months ended June 30, 2025 was 23.6% and 22.6%, respectively compared to 23.2% and 23.1% for the three and six months ended June 30, 2024, respectively. The fluctuations in the effective tax rate are largely driven by the timing and volume of certain stock-based compensation transactions resulting in tax benefits to the Company, as well as the timing and volume of state tax adjustments.
Current wording
The effective tax rate for the three and nine months ended September 30, 2025 was 22.7% and 22.6%, respectively compared to 23.2% for each of the three and nine months ended September 30, 2024, respectively. The fluctuations in the effective tax rate are largely driven by the timing and volume of certain stock-based compensation transactions resulting in tax benefits to the Company, as well as the timing and volume of state tax adjustments.
Previous wording
Cash and cash equivalents increased 15% from $124.1 million at December 31, 2024 to $143.2 million at June 30, 2025 as cash inflows from deposit growth more than offset cash outflows to fund loan growth during the first six months of 2025.
Current wording
Cash and cash equivalents decreased 17% from $124.1 million at December 31, 2024 to $103.4 million at September 30, 2025 as cash outflows to fund loan growth more than offset cash inflows from deposit growth during the first nine months of 2025.
Previous wording
The investment security portfolio is comprised of held to maturity securities recorded at amortized cost and available for sale securities recorded at fair value. Held to maturity securities decreased by $1.1 million to $39.5 million as of June 30, 2025, as compared to $40.6 million as of December 31, 2024. Available for sale securities increased $17.3 million from $65.6 million at December 31, 2024 to $82.9 million at June 30, 2025.
Current wording
The investment security portfolio is comprised of held to maturity securities recorded at amortized cost and available for sale securities recorded at fair value. Held to maturity securities decreased $2.0 million to $38.6 million as of September 30, 2025, compared to $40.6 million as of December 31, 2024. Available for sale securities increased $20.2 million from $65.6 million at December 31, 2024 to $85.8 million at September 30, 2025.
Previous wording
Total loans, net of deferred loan costs and unamortized discounts, increased 7% to $871.6 million at June 30, 2025, compared to $816.0 million at December 31, 2024. Loan originations, including government guaranteed and non-guaranteed commercial loans, totaled $293.5 million during the first six months of 2025, compared to $263.6 million for the same period in 2024.
Current wording
Total loans, net of deferred loan costs and unamortized discounts, increased 15% to $940.6 million at September 30, 2025, compared to $816.0 million at December 31, 2024. Loan originations, including government guaranteed and non-guaranteed commercial loans, totaled $535.7 million during the first nine months of 2025, compared to $419.9 million for the same period in 2024.
Previous wording
The process for evaluating, approving, and submitting repurchase packages to the SBA was consistent with SOP 50 57 (3) and Section 7.6 of the Secondary Participation Guaranty Agreement. Updated financials from each borrower were reviewed to assess the viability of the business before preparing an interest rate modification document. Once the interest rate modification was approved internally, GBank sought approval for modifications, and submitted requests to the SBA to repurchase these SBA loans. According to the SOP, SBA shall review the repurchase request package, and based on the financial and other information provided determine whether an emergency repurchase of the SBA loan is appropriate for that specific borrower. This activity resulted in the repurchase of $106.1 million of United States government guaranteed loan balances within the commercial and industrial and commercial real estate segments during the year ended December 31, 2023. This program continued through the end of the first quarter of 2024, during which $44.2 million of the guaranteed portion of previously sold loans were repurchased. The balance of guaranteed loans at June 30, 2025 was $237.6 million, representing 22.1% of loans. Comparatively, at December 31, 2024, the Company had $233.9 million of guaranteed loan balances representing 24.7% of loans. Given the stabilization of the interest rate environment the Company is not anticipating any material repurchases in the foreseeable future.
Current wording
The process for evaluating, approving, and submitting repurchase packages to the SBA was consistent with SOP 50 57 (3) and Section 7.6 of the Secondary Participation Guaranty Agreement. Updated financials from each borrower were reviewed to assess the viability of the business before preparing an interest rate modification document. Once the interest rate modification was approved internally, GBank sought approval for modifications, and submitted requests to the SBA to repurchase these SBA loans. According to the SOP, SBA shall review the repurchase request package, and based on the financial and other information provided determine whether an emergency repurchase of the SBA loan is appropriate for that specific borrower. This activity resulted in the repurchase of $106.1 million of United States government guaranteed loan balances within the commercial and industrial and commercial real estate segments during the year ended December 31, 2023. This program continued through the end of the first quarter of 2024, during which $44.2 million of the guaranteed portion of previously sold loans were repurchased. The balance of guaranteed loans at September 30, 2025 was $260.5 million, representing 20.6% of loans. Comparatively, at December 31, 2024, the Company had $233.9 million of guaranteed loan balances representing 24.7% of loans. Given the stabilization of the interest rate environment the Company is not anticipating any material repurchases in the foreseeable future.
Previous wording
Net deferred loan costs totaled $9.5 million at June 30, 2025 and $8.2 million at December 31, 2024. Net deferred loan costs represent the costs incurred to originate loans, net of fees paid by the borrower, which are measured and recorded at the date the loan is originated. Unamortized discount totaled $9.6 million at June 30, 2025 and $8.9 million at December 31, 2024. The unamortized discount relates to the retained portion of government guaranteed loans and is based on the relative fair value of the retained loan as calculated by an independent consulting firm. Loan costs and discount are amortized over the life of the loan and are recorded as an adjustment to interest income on the loan.
Current wording
Net deferred loan costs totaled $10.5 million at September 30, 2025 and $8.2 million at December 31, 2024. Net deferred loan costs represent the costs incurred to originate loans, net of fees paid by the borrower, which are measured and recorded at the date the loan is originated. Unamortized discount totaled $10.4 million at September 30, 2025 and $8.9 million at December 31, 2024. The unamortized discount relates to the retained portion of government guaranteed loans and is based on the relative fair value of the retained loan as calculated by an independent consulting firm. Loan costs and discount are amortized over the life of the loan and are recorded as an adjustment to interest income on the loan.
Previous wording
Loans held for sale totaled $45.2 million at June 30, 2025 and consisted of commercial real estate – non-owner occupied, commercial real estate – owner occupied, and commercial and industrial loans. Loans held for sale totaled $32.6 million at December 31, 2024 and consisted of commercial real estate – non-owner occupied, commercial real estate – owner occupied, and commercial and industrial loans. The balance of unguaranteed portions to be retained are reported as held for investment.
Current wording
Loans held for sale totaled $66.8 million at September 30, 2025 and consisted of commercial real estate – non-owner occupied, commercial real estate – owner occupied, and commercial and industrial loans. Loans held for sale totaled $32.6 million at December 31, 2024 and consisted of commercial real estate – non-owner occupied, commercial real estate – owner occupied, and commercial and industrial loans. The balance of unguaranteed portions to be retained are reported as held for investment.
Previous wording
The allowance for credit losses increased from $9.1 million at December 31, 2024 to $9.2 million at June 30, 2025. The allowance as a percentage of loan balances decreased from 1.12% at December 31, 2024 to 1.06% at June 30, 2025. The Company continues to closely monitor credit quality in light of the ongoing economic uncertainty caused by, among other factors, the prolonged elevated interest rate environment, stronger than expected employment data in recent periods, continued uncertainty regarding U.S. trade and tariff policy and the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas. Accordingly, additional provisions for credit losses may be necessary in future periods.
Current wording
The allowance for credit losses increased from $9.1 million at December 31, 2024 to $10.6 million at September 30, 2025. The allowance as a percentage of loan balances remained unchanged at 1.12% at September 30, 2025 and December 31, 2024. The Company continues to closely monitor credit quality in light of the ongoing economic uncertainty caused by, among other factors, continued uncertainty regarding U.S. trade and tariff policy and the lingering inflationary pressures and the risk of the resurgence of elevated levels of inflation in the United States and our market areas. Accordingly, additional provisions for credit losses may be necessary in future periods.
Previous wording
The Company had $18.4 million of non-performing loans as of June 30, 2025, compared to $14.2 million of non-performing loans as of December 31, 2024. As of June 30, 2025, the balance of non-performing loans was comprised of certain commercial real estate – non-owner occupied, commercial real estate – owner occupied, commercial and industrial loans, and consumer loans, of which $13.8 million is guaranteed by the SBA. Included in the balance of non-performing assets as of June 30, 2025 are $6.8 million of individually evaluated loans with specific credit loss reserves of $784 thousand assigned. As of December 31, 2024, the balance of non-performing loans was comprised of certain commercial real estate – non-owner occupied, commercial real estate – owner occupied, commercial and industrial loans, and consumer loans totaling $14.2 million, of which $9.3 million is guaranteed by the SBA. Included in the balance of non-performing assets as of December 31, 2024 are $12.5 million of individually evaluated loans with specific credit loss reserves of $1.4 million assigned.
Current wording
The Company had $34.8 million of non-performing loans as of September 30, 2025, compared to $14.2 million of non-performing loans as of December 31, 2024. As of September 30, 2025, the balance of non-performing loans was comprised of certain commercial real estate – non-owner occupied, commercial real estate – owner occupied, commercial and industrial loans, and consumer loans, of which $27.1 million is guaranteed by the SBA. Included in the balance of non-performing loans as of September 30, 2025 are $24.2 million of individually evaluated loans with specific credit loss reserves of $1.7 million assigned. As of December 31, 2024, the balance of non-performing loans was comprised of certain commercial real estate – non-owner occupied, commercial real estate – owner occupied, commercial and industrial loans, and consumer loans totaling $14.2 million, of which $9.3 million is guaranteed by the SBA. Included in the balance of non-performing assets as of December 31, 2024 are $12.5 million of individually evaluated loans with specific credit loss reserves of $1.4 million assigned.
Previous wording
The Company had no other real estate owned as of June 30, 2025 or December 31, 2024.
Current wording
The Company held $2.7 million of other real estate owned as of September 30, 2025. The Company held no other real estate owned as of December 31, 2024.
Previous wording
The operating lease right of use asset increased $1.2 million from $4.5 million at December 31, 2024 to $5.7 million at June 30, 2025, due to the modification of two leased locations during the first quarter of 2025 resulting in a five year extensions of the lease terms.
Current wording
The operating lease right of use asset increased $1.0 million from $4.5 million at December 31, 2024 to $5.5 million at September 30, 2025, due to the modification of two leased locations during the first quarter of 2025 resulting in a five year extensions of the lease terms.
Previous wording
Loan servicing assets increased $760 thousand from $9.0 million at December 31, 2024 to $9.7 million at June 30, 2025, primarily due the addition of servicing rights of $3.4 million relating to loans sold during the six months ended June 30, 2025. This increase was partially offset by loan servicing asset amortization of $2.6 million during the quarter.
Current wording
Loan servicing assets increased $1.6 from $9.0 million at December 31, 2024 to $10.6 million at September 30, 2025, primarily due the addition of servicing rights of $5.8 million relating to loans sold during the nine months ended September 30, 2025. This increase was partially offset by loan servicing asset amortization of $4.2 million during the quarter.
Previous wording
Other assets totaled $22.9 million at June 30, 2025, an increase of $3.6 million, or 18%, when compared to $19.4 million at December 31, 2024, with this increase largely attributable to growth of the organization driving increases in other miscellaneous receivables.
Current wording
Other assets totaled $21.9 million at September 30, 2025, an increase of $2.6 million, or 13%, when compared to $19.4 million at December 31, 2024, with this increase largely attributable to growth of the organization driving increases in other miscellaneous receivables.
Previous wording
The Company’s total liabilities increased $99.0 million, or 10%, to $1.08 billion at June 30, 2025 compared to $981.7 million at December 31, 2024. The increase in total liabilities was primarily attributable to an increase in total deposits of $97.4 million with the largest increases within time deposits and savings accounts.
Current wording
The Company’s total liabilities increased $161.5 million, or 16%, to $1.1 billion at September 30, 2025 compared to $981.7 million at December 31, 2024. The increase in total liabilities was primarily attributable to an increase in total deposits of $157.1 million with the largest increases within time deposits and savings accounts.
Previous wording
Total deposits increased 10% to $1.03 billion at June 30, 2025, compared to $935.1 million at December 31, 2024. The year-to-date decreases in non-interest bearing and interest bearing demand deposits were offset by increases in time deposits and savings deposits. Contributing to the increase in time deposits was a net increase of $8.0 million of brokered deposits since December 31, 2024.
Current wording
Total deposits increased 17% to $1.1 billion at September 30, 2025, compared to $935.1 million at December 31, 2024. The year-to-date decreases in non-interest bearing and interest bearing demand deposits were offset by increases in time deposits and savings deposits. Contributing to the increase in time deposits was a net increase of $37.7 million of brokered deposits since December 31, 2024.
Previous wording
Federal Deposit Insurance Corporation (“FDIC”) deposit insurance covers $250 thousand per depositor, per FDIC-insured bank, for each account ownership category. As of June 30, 2025, uninsured deposits were approximately $402.3 million, or 38.9% of total deposits, compared to $385.7 million, or 41.2% of total deposits, as of December 31, 2024.
Current wording
Federal Deposit Insurance Corporation (“FDIC”) deposit insurance covers $250 thousand per depositor, per FDIC-insured bank, for each account ownership category. As of September 30, 2025, uninsured deposits were approximately $375.8 million, or 34.1% of total deposits, compared to $385.7 million, or 41.2% of total deposits, as of December 31, 2024.
Previous wording
Operating lease liability increased $1.3 million, from $4.8 million at December 31, 2024 to $6.1 million at June 30, 2025 reflecting the modification of two leased locations during the first quarter of 2025 resulting in five year extensions of the lease terms.
Current wording
Operating lease liability increased $1.1 million, from $4.8 million at December 31, 2024 to $5.9 million at September 30, 2025 reflecting the modification of two leased locations during the first quarter of 2025 resulting in five year extensions of the lease terms.
Showing the first 40 of 45 pairs. Open the source sections for the rest.