GBank Financial Holdings Inc.
For the period ended Mar 31, 2026. Filed May 15, 2026.
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.
Mar 31, 2026 · Filed May 15, 2026
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 2025-09-30; filed 2025-11-12.
0001193125-25-276230
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001193125-26-226363
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 113 current paragraphs.
55 unchanged; 40 reworded; 18 added; 44 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 15 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 (18)
Current report
Loan growth of 7% since December 31, 2025, resulting in $1.0 billion in on-balance sheet loans as of March 31, 2026, a milestone for the Company.
Current report
Net interchange fees were $2.2 million and $2.0 million for the three months ended March 31, 2026 and 2025, respectively.
Current report
The 2025 Annual Report on Form 10-K includes a summary of critical accounting estimates that the Company considers to be most important to the presentation of its financial condition and results of operations. These estimates require management’s most difficult judgments as a result of the need to make estimates about the effects of matters that are inherently uncertain.
Current report
Management considers the accounting judgments relating to the allowance for credit losses to be the accounting area that requires the most subjective and complex judgments.
Current report
There have been no material changes to the Company's critical accounting estimates as disclosed in the Annual Report on Form 10-K for the year ended December 31, 2025.
Current report
Results of Operations
Current report
Loan servicing income increased $295 thousand from $703 thousand for the three months ended March 31, 2025 to $998 thousand for the three months ended March 31, 2026. The increase in loan servicing income was the result of higher average balances of loans serviced by the Company during 2026.
Current report
Other income increased $253 thousand from $164 thousand for the three months ended March 31, 2025 to $417 thousand for the three months ended March 31, 2026 due to an increase in bank owned life insurance income of $304 thousand for the quarter ended March 31, 2026 resulting from a bank owned life insurance investment of $15.0 million during the third quarter of 2025.
Current report
For the three months ended March 31, 2026, noninterest expense increased 45.6% to $15.9 million, compared to $10.9 million for the three months ended March 31, 2025.
Current report
Salaries and employee benefits expense totaled $6.8 million for the three months ended March 31, 2026, an increase of $350 thousand or 5.5% when compared to $6.4 million for the first quarter of 2025. The increase is attributable to (i) higher employee salaries and benefits expenses resulting from an increase in full-time equivalent employees from 175 at March 31, 2025 to 189 at March 31, 2026 and (ii) an increase in stock based compensation expense of $105 thousand quarter over quarter.
Current report
During the first quarter of 2026, the Company identified and charged off $4.2 million of third-party fraud credit card losses related toembedded bot fraud resulting from a direct mail retail credit card campaign undertaken during the second half of 2025. Similar losses did not occur during the three months ended March 31, 2025.
Current report
Advertising and marketing expense increased $466 thousand to $830 thousand during the first quarter of 2026, compared to $364 thousand during the first quarter of 2025. The increase in advertising and marketing expense was largely attributable marketing and advertising expenses related to the Company's credit card product.
Current report
Total assets were $1.4 billion for each of the periods ended March 31, 2026 and December 31, 2025.
Current report
The Company's three largest loan segments are presented by borrower type in the table below for the periods presented.
Current report
The Company continues to expand its national business lines for government guaranteed lending with a focus on the hospitality industry. For the year ended December 31, 2025, the Bank was a leading provider of SBA hotel financing and ranked among the nation’s top originators of SBA 7(a) loans, placing #11 nationwide. The balance of guaranteed loans at March 31, 2026 was $252.1 million, representing 17.3% of loans. Comparatively, at December 31, 2025, the Company had $229.7 million of guaranteed loan balances representing 19.2% of loans.
Current report
Premises and Equipment
Current report
Premises and equipment increased $144 thousand from $1.1 million at December 31, 2025 to $1.2 million at March 31, 2026 largely due purchases of $210 thousand net of depreciation of $66 thousand during the three months ended March 31, 2026.
Current report
Other assets totaled $27.6 million at March 31, 2026, a decrease of $10.2 million, or 27% when compared to $37.8 million at December 31, 2025, with this decrease largely attributable to the collection of $10.2 million of cash in-transit during the first three months of 2026 related to certain investment security sales executed during the fourth quarter of 2025.
Removed paragraphs (44)
Previous report
Recent Events
Previous 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.
Previous report
Loan growth of 15% since December 31, 2024.
Previous report
Net interchange fees of $2.4 million compared to $284 thousand during the third quarter of 2024.
Previous report
In preparing the Company’s Consolidated Financial Statements, accounting policies are applied that require significant judgment and estimates, which can materially impact the Company’s financial position and results of operations. The following are the critical accounting policies that have the most significant impact on the Company’s financial statements because they require significant judgments and assumptions about highly complex and inherently uncertain matters. The use of reasonably different estimates and assumptions could have a material impact on our results of operations or financial condition.
Previous report
Allowance for Credit Losses
Previous report
The allowance for credit losses reflects management’s best estimate of credit losses over the remaining life of the loan portfolio and is presented as a valuation account deducted from the loan portfolio’s amortized cost basis to present the net amount expected to be collected on the loans.
Previous report
The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. GBank has segregated its held-for-investment loan portfolio into segments based on federal call report codes which classify loans based on the primary collateral supporting the loan. The segments are reviewed by management no less than annually to ensure instruments are properly segregated into groups having similar risk characteristics and new segments may be required as the Company offers new loan products.
Previous report
The Company’s loan portfolio includes certain loans which are partially guaranteed by the U.S. Small Business Administration. The Current Expected Credit Losses (“CECL”) model does not require an entity to measure expected credit losses on an instrument, or pool of instruments, if historical information adjusted for current conditions and reasonable and supportable forecasts result in zero expected credit losses in all scenarios. The guaranteed portion of the loan pools range from 75 percent to 90 percent. For purposes of the assessment of credit losses, Company management ascertains the guaranteed portion of these loans has zero repayment risk due to the full guarantee of the U.S. government.
Previous report
The Company measures the allowance for credit losses using the average charge-off method and calculates an estimate of expected credit losses based on actual losses incurred during a historic look-back period. The Company has chosen to use the historic losses of similarly insured institutions for each of its loan segments with the exception of commercial real estate loans for which Company management has defined a custom peer group of institutions having a large focus on government guaranteed lending.
Previous report
To account for the model’s quantitative limitations when estimating credit losses, management also considers certain qualitative adjustments, including considerations of:
Previous report
changes in lending policies, underwriting standards, and collection practices
Previous report
changes in economic and business conditions
Previous report
changes in volume and severity of past due and adversely classified loans, including nonaccrual volume
Previous report
changes in nature, volume, and terms of loans
Previous report
changes in the experience, ability, and depth of lending management and staff
Previous report
changes in underlying collateral values
Previous report
effect of concentrations (loan types) as a percentage of capital
Previous report
changes in the quality of the loan review system
Previous report
effects of other factors (unemployment, loss of benefits, depreciation, loss of net worth, etc.)
Previous report
GBank considers financial assets on an individual basis when the financial asset has unusual risk characteristics not matching an existing segment and may assign a specific reserve to the financial asset having unusual risk characteristics. The specific reserve component is calculated as the Company's evaluation of credit loss on individually evaluated loans based on the fair value of the collateral less estimated selling costs if collateral dependent or based on the present value of expected future cash flows discounted at the loan's initial effective interest rate if not collateral dependent. The majority of the Company's loans subject to individual evaluation are considered collateral dependent. The Company uses the practical expedient as permitted under ASC 326 to measure individually evaluated loans as collateral dependent and/or when repayment is expected to be provided substantially through the operation or sale of the collateral. Expected credit losses are based on the fair value at the reporting date, adjusted for selling costs as appropriate. For collateral dependent loans, credit loss is measured as the difference between the amortized cost basis in the loan and the fair value of the underlying collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral.
Previous report
Emerging Growth Company
Previous report
Pursuant to the JOBS Act, an emerging growth company is provided the option to adopt new or revised accounting standards that may be issued by the Financial Accounting Standards Board (“FASB”) or the SEC either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. We have elected to use the extended transition period for complying with new or revised accounting standards affecting public companies, which means that our financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards on a non-delayed basis.
Previous report
We may take advantage of some of the reduced regulatory and reporting requirements that are available to it so long as we qualify as an emerging growth company, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.
Previous report
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 report
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 report
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 report
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 report
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 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.
Previous report
Beginning in the third quarter of 2023, and continuing into the first quarter 2024, the Company repurchased previously sold guaranteed SBA loans by initiating a change in loan terms with certain borrowers, at the borrowers’ option, to convert variable loans to five-year fixed rate loans at lower current interest rates. The repurchase program was initiated in response to a rapid rise in the Wall Street Journal Prime Rate which has the potential to significantly impact our borrowers, the majority of whom are in variable rate loans. The Prime Rate increased from 3.25% to 8.50% between March 2022 and July 2023, an increase of 525 basis points. The Company received requests from borrowers due to the higher payments affecting borrowers’ cash flow and operations. Given the predicted economic outlook and anticipated interest rate reductions likely being delayed until late 2024, the Company decided to evaluate converting the variable rate structure to a fixed-rate based on a current credit evaluation. In response, GBank reached out to request annual tax returns and updated financial information from borrowers. The Company began to repurchase previously sold guaranteed SBA loans by initiating a change in loan terms with certain borrowers, at the borrowers’ option, to convert variable loans to five-year fixed rate loans at the current market terms.
Previous report
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 report
The following table sets forth the dispersion of loan principal balances with amounts and the percentage of the total balances in the states with five percent of total loans as of September 30, 2025:
Previous report
Operating Lease Right of Use Asset
Previous report
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 report
Loan Servicing Assets
Previous report
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 report
Federal Home Loan Bank Stock, At Cost
Previous report
FHLB stock increased $861 thousand from $4.7 million at December 31, 2024 to $5.5 million at September 30, 2025. As a member of the FHLB, GBank is required to hold capital stock with this balance dependent upon GBank’s borrowing capacity with the FHLB.
Previous report
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.
Showing the first 40 of 44 passages. Open the source sections for the rest.
Reworded paragraphs (40)
Previous wording
The following presents management’s discussion and analysis of the financial condition and results of operations of GBank Financial Holdings Inc. (individually, “GBFH” and collectively with its subsidiaries including GBank, the “Company”). This discussion should be read in conjunction with the unaudited consolidated financial statements and related notes included elsewhere in this quarterly report on Form 10-Q and with the Company's Registration Statement on Form S-1 and S-1/A. Results of operations for the periods included in this quarterly report on Form 10-Q are not necessarily indicative of results to be obtained during any future period.
Current wording
The following presents management’s discussion and analysis of the financial condition and results of operations of GBank Financial Holdings Inc. (individually, “GBFH” and collectively with its subsidiaries including GBank, the “Company”). This discussion should be read in conjunction with the unaudited consolidated financial statements and related notes included elsewhere in this quarterly report on Form 10-Q and with the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Results of operations for the periods included in this quarterly report on Form 10-Q are not necessarily indicative of results to be obtained during any future period.
Previous wording
GBank Financial Holdings Inc. is a bank holding company headquartered in Las Vegas, Nevada and registered under the Bank Holding Company Act of 1956, as amended (the “BHC Act”). Through our wholly owned bank subsidiary, GBank, we operate two full-service commercial branches in Las Vegas, Nevada to provide a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and affluent individuals in Nevada, California, Utah, and Arizona. Our founding members, including our Executive Chairman of the Board, Edward M. Nigro, recognized a need in the greater Las Vegas area for a solutions-oriented, relationship bank focused on middle market companies and real estate entrepreneurs who generally require loans of $200 thousand to $20 million, a size often overlooked or deprioritized by larger financial institutions. GBank was established in 2007 with the goal of helping these underserved clients build and sustain wealth. By combining the relationship-based focus of a community bank with the extensive suite of financial products and services offered by our largest competitors, we believe that we are well-positioned to continue to capitalize on the significant growth opportunities available not only in the greater Las Vegas and Clark County area, but regionally and nationally through our SBA lending, Gaming Fintech, and credit card initiatives. These activities, together with our two strategically located banking centers, generate a stable source of low-cost core deposits and a diverse loan portfolio with attractive risk-adjusted yields.
Current wording
GBank Financial Holdings Inc. is a bank holding company headquartered in Las Vegas, Nevada and registered under the Bank Holding Company Act of 1956, as amended (the “BHC Act”). Through our wholly owned bank subsidiary, GBank, we operate two full-service commercial branches in Las Vegas, Nevada to provide a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and affluent individuals in Nevada, California, Utah, and Arizona. Our founding members, including our Executive Chairman of the Board, Edward M. Nigro, recognized a need in the greater Las Vegas area for a solutions-oriented, relationship bank focused on middle market companies and real estate entrepreneurs who generally require loans of $200 thousand to $20 million, a size often overlooked or deprioritized by larger financial institutions. GBank was established in 2007 with the goal of helping these underserved clients build and sustain wealth. By combining the relationship-based focus of a community bank with the extensive suite of financial products and services offered by our largest competitors, we believe that we are well-positioned to continue to capitalize on the significant growth opportunities available not only in the greater Las Vegas and Clark County area, but regionally and nationally through our SBA lending and Gaming Fintech initiatives. These activities, together with our two strategically located banking centers, generate a stable source of low-cost core deposits and a diverse loan portfolio with attractive risk-adjusted yields.
Previous wording
The following table presents a summary of the Company's earnings and selected performance ratios for the three- and nine-month periods presented:
Current wording
The following table presents a summary of the Company's earnings and selected performance ratios for the three-month periods presented:
Previous 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.
Current wording
Net income of $1.3 million and diluted earnings per share of $0.09, compared to $4.5 million and diluted earnings per share of $0.31 for the first quarter of 2025.
Previous 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.
Current wording
Principal balances of loans sold of $79.0 million compared to principal balances of loans sold of $68.7 million during the three months ended March 31, 2025.
Previous wording
On-balance sheet guaranteed loans totaled $260.5 million as of September 30, 2025 compared to $233.9 million at December 31, 2024.
Current wording
On-balance sheet guaranteed loans, including loans held for sale and loans held for investment, totaled $252.1 million as of March 31, 2026 compared to $229.7 million at December 31, 2025.
Previous 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.
Current wording
Non-performing assets of $44.1 million at March 31, 2026 representing 3.17% of total assets compared to $37.4 million of non-performing assets at December 31, 2025, representing 2.75% 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 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.
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-month periods presented. Average balances are calculated on a daily basis. The Company had no tax equivalent adjustments for the three months ended March 31, 2026 and 2025.
Previous 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.
Current wording
For the three months ended March 31, 2026 and 2025, the average balance of loans, net includes average non-accrual loan balances of $36.7 million and $17.9 million, respectively.
Previous 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.
Current wording
The following table presents the effects of changing rates and volumes on net interest income for the three-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 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.
Current wording
For the three months ended March 31, 2026, interest income was $21.6 million, an increase of $2.2 million compared to $19.4 million for the three months ended March 31, 2025. The increases in interest income when comparing the three-month periods ended March 31, 2026 to the same period in 2025 is 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 cumulative 75 basis point reduction in the target federal funds rate on the Company’s variable-rate loan portfolio over the preceding twelve months.
Previous 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.
Current wording
Interest expense was $9.4 million for the three months ended March 31, 2026, an increase of $1.9 million compared to $7.5 million for the three months ended March 31, 2025. The increase in interest expense when comparing the three months ended March 31, 2026 to the same period in 2025 was driven by increases in average interest-bearing liabilities to fund asset growth.
Previous 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.
Current wording
For the three months ended March 31, 2026, the Company's net interest margin decreased to 3.86%, compared to 4.47% for the three months ended March 31, 2025. The decrease in net interest margin for the three months ended March 31, 2026 when compared to the same period in 2025 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 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.
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 months ended March 31, 2026, the Company recorded a provision for credit losses of $2.3 million. The provision for credit losses for the three months ended March 31, 2026 is primarily reflective of increases in specific reserves of $1.4 million on individually evaluated commercial real estate - owner occupied, commercial real estate - non-owner occupied, and commercial and industrial loans. Additionally, the increase includes $860 thousand related to non-guaranteed loan growth primarily within GBank's commercial real estate - non-owner occupied loan portfolio.
Previous 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.
Current wording
For the three months ended March 31, 2026, noninterest income totaled $7.5 million compared to noninterest income $5.5 million for the three months ended March 31, 2025.
Previous 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.
Current wording
Gain on sale of loans totaled $3.8 million for the first quarter of 2026 compared to $2.5 million for the first quarter of 2025. The increase in gain on sale of loans for the three-month period ended March 31, 2026 was due to higher volumes of loans sold and favorable secondary market pricing during the three months ended March 31, 2026 when compared to the same period of 2025.
Previous 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.
Current wording
Data processing expense increased $484 thousand, or 34.4%, from $1.4 million for the three months ended March 31, 2025 to $1.9 million for the three months ended March 31, 2026. The year over year increase was due to higher costs from transactional-based charges given the volume increases in loans and deposits over the last twelve months.
Previous 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.
Current wording
Legal and professional fees totaled $371 thousand for the three months ended March 31, 2026, a decrease of $329 thousand or 47.0% when compared to $700 thousand for the three months ended March 31, 2025. Audits and exams expense totaled $198 thousand for the three months ended March 31, 2026, a decrease of $299 thousand when compared to $497 thousand for the first quarter of 2025. The decrease in legal and professional fees and audits and exams expense reflects extraordinary legal, professional, and audit fees associated with the preparation and filing of the registration statement with the Securities and Exchange Commission on Forms S-1 and S-1/A during the first quarter of 2025.
Previous 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.
Current wording
Income tax expense was $139 thousand for the three months ended March 31, 2026, a decrease of 88.6% or $1.1 million compared to $1.2 million for the three months ended March 31, 2025. The decrease in income tax expense during the three months ended March 31, 2026 was primarily due to lower pre-tax earnings, as well as the timing and volume of certain stock based compensation transactions resulting in tax benefits to the company.
Previous 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.
Current wording
The effective tax rate for the three months ended March 31, 2026 was 9.4% compared to 21.4% for the three months ended March 31, 2025. 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.
Previous 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.
Current wording
Cash and cash equivalents decreased 45% from $197.9 million at December 31, 2025 to $108.1 million at March 31, 2026 as cash outflows to fund loan growth and investment purchases more than offset cash inflows from deposit growth during the first three months of 2026.
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 $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.
Current wording
The investment security portfolio is comprised of available for sale securities recorded at fair value which increased $40.3 million from $71.0 million at December 31, 2025 to $111.3 million at March 31, 2026 primarily due to the purchase of $44.0 million of available for sale residential mortgage-backed securities.
Previous 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.
Current wording
Total loans, net of deferred loan costs and unamortized discounts, increased 7% to $1.0 billion at March 31, 2026, compared to $959.3 million at December 31, 2025. Loan originations, including government guaranteed and non-guaranteed commercial loans, totaled $208.1 million during the first three months of 2026, compared to $133.0 million for the same period in 2025.
Previous 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.
Current wording
Net deferred loan costs totaled $10.4 million at March 31, 2026 and $10.0 million at December 31, 2025. 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 $11.2 million at March 31, 2026 and $10.9 million at December 31, 2025. 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 $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.
Current wording
Loans held for sale totaled $74.5 million at March 31, 2026 and consisted of commercial real estate – non-owner occupied, commercial real estate – owner occupied, and commercial and industrial loans. Loans held for sale totaled $46.0 million at December 31, 2025 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 $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.
Current wording
The allowance for credit losses increased from $9.9 million at December 31, 2025 to $10.8 million at March 31, 2026. The allowance as a percentage of loan balances increased from 1.03% to 1.05%. 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 $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.
Current wording
The Company had $39.7 million of non-performing loans as of March 31, 2026, compared to $33.0 of non-performing loans as of December 31, 2025. As of March 31, 2026, the balance of non-performing loans was comprised of certain commercial real estate – non-owner occupied, commercial real estate – owner occupied, and commercial and industrial loans, of which $30.9 million is guaranteed by the SBA. Included in the balance of non-performing loans as of March 31, 2026 are $27.5 million of individually evaluated loans with specific credit loss reserves of $2.6 million assigned. As of December 31, 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 totaling $33.0 million, of which $24.8 million is guaranteed by the SBA. Included in the balance of non-performing assets as of December 31, 2025 are $14.5 million of individually evaluated loans with specific credit loss reserves of $1.2 million assigned.
Previous 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.
Current wording
The Company held $4.4 million of other real estate owned as of both March 31, 2026 and December 31, 2025.
Previous 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.
Current wording
The Company’s total liabilities increased $32.5 million, or 3% from December 31, 2025 to March 31, 2026. The increase in total liabilities was primarily attributable to an increase in total deposits of $28.3 million with the largest increases within time deposits.
Previous 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.
Current wording
Total deposits increased 2% to $1.2 billion at March 31, 2026 compared to $1.1 billion at December 31, 2025. The year-to-date increases in non-interest bearing, interest bearing demand deposits, and time deposits were partially offset by decreases in savings deposits.
Previous wording
The following table presents the average balances of deposits by type and the related average interest rates for the three months ended September 30, 2025 and 2024:
Current wording
The following table presents the average balances of deposits by type and the related average interest rates for the three months ended March 31, 2026:
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 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.
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 March 31, 2026, uninsured deposits were approximately $422.8 million, or 35.7% of total deposits, compared to $417.4 million, or 36.5% of total deposits, as of December 31, 2025.
Previous wording
The Company had no short-term borrowings as of September 30, 2025 or December 31, 2024.
Current wording
The Company had no short-term borrowings as of March 31, 2026 compared to $371 thousand for December 31, 2025.
Previous wording
Subordinated debt totaled $26.1 million as of both September 30, 2025 and December 31, 2024. See "Note 7 - Subordinated Debt, Other Borrowings, and Available Lines of Credit", within Notes to Consolidated Financial Statements.
Current wording
Subordinated debt totaled $30.3 million as of March 31, 2026 compared to $26.2 million as of December 31, 2025. See "Note 7 - Subordinated Debt, Other Borrowings, and Available Lines of Credit", within the Notes to Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
Previous wording
Stockholders' equity increased 12% to $158.2 million at September 30, 2025 compared to $140.7 million at December 31, 2024 with this increase driven primarily by the net income generated during the first nine months of 2025.
Current wording
Stockholders' equity increased 1% to $167.6 million at March 31, 2026 compared to $165.8 million at December 31, 2025 with this increase driven primarily by the net income generated during the first three months of 2026.
Previous wording
The sufficiency of a bank's capital to cover its risk exposures and absorb potential losses, and thus ensuring stability and solvency, is a key element of capital adequacy. Regulatory frameworks set minimum capital requirements that are typically expressed as a percentage of the bank's risk-weighted assets and include common equity tier 1, tier 1, and total capital ratios. These minimum capital requirements have been established so that banks maintain a buffer of capital to protect against financial shocks, sustain operations during economic downturns, and safeguard depositors and the financial system as a whole.
Current wording
The sufficiency of a bank's capital to cover its risk exposures and absorb potential losses, and thus ensuring stability and solvency, is a key element of capital adequacy.
Previous wording
The Company's common equity to assets ratio was 12.2% as of September 30, 2025, compared to 12.5% as of December 31, 2024. The Company's book value per share was $11.07 as of September 30, 2025, an increase of 12% from $9.87 as of December 31, 2024.
Current wording
The Company's common equity to assets ratio was 12.0% as of March 31, 2026 compared to 12.2% as of December 31, 2025. The Company's book value per share was $11.58 as of March 31, 2026, an increase from $11.52 as of December 31, 2025.
Previous wording
The Company has a line of credit available from the FHLB. The unused borrowing capacity with the FHLB, as collateralized by qualifying securities and pledged loans, was approximately $101.9 million and $85.0 million, at September 30, 2025 and December 31, 2024, respectively. No draws have been made on the line and no balances were outstanding as of September 30, 2025 and December 31, 2024.
Current wording
The Company has a line of credit available from the FHLB. The unused borrowing capacity with the FHLB, as collateralized by qualifying securities and pledged loans, was approximately $126.1 million and $88.7 million, at March 31, 2026 and December 31, 2025, respectively. No draws were outstanding as of March 31, 2026. The balance on the line of credit with the FHLB of San Francisco was $100 thousand as of December 31, 2025.
Previous wording
GBank participates in the Federal Reserve Bank of San Francisco’s BIC Program and, as of September 30, 2025 and December 31, 2024, the Company had pledged loans and investment securities with an approximate carrying value of $642.8 million and $590.5 million, respectively, to the BIC Program. Unused borrowing capacity at the Federal Reserve Bank of San Francisco totaled $361.9 million and $362.6 million as of September 30, 2025 and December 31, 2024, respectively.
Current wording
GBank participates in the Federal Reserve Bank of San Francisco’s BIC Program and, as of March 31, 2026 and December 31, 2025, the Company had pledged loans and investment securities with an approximate carrying value of $592.7 million and $633.1 million, respectively, to the BIC Program. Unused borrowing capacity at the Federal Reserve Bank of San Francisco totaled $314.4 million and $351.3 million as of March 31, 2026 and December 31, 2025, respectively.
Previous wording
The Company’s Consolidated Statement of Cash Flows presents additional information regarding the sources and uses of cash for the nine months ended September 30, 2025. Operating activities resulted in a net decrease in cash of $17.0 million, as cash inflows from loan sales were more than offset cash outflows for the origination of loans held for sale. Investing activities resulted in a net decrease in cash of $161.6 million primarily due to loans originated and held for investment, as well as purchases of available for sale securities, and a $15 million investment in bank owned life insurance. Financing activities resulted in a net increase to cash of $103.4 million, primarily due to a net increase in deposits during the nine months ended September 30, 2025.
Current wording
The Company’s Consolidated Statement of Cash Flows presents additional information regarding the sources and uses of cash for the three months ended March 31, 2026. Operating activities resulted in a net decrease in cash of $14.3 million, as cash inflows from loan sales were more than offset cash outflows for the origination of loans held for sale. Investing activities resulted in a net decrease in cash of $108.5 million primarily due to loans originated and held for investment, as well as purchases of available for sale securities. Financing activities resulted in a net increase to cash of $33.0 million, primarily due to a net increase in deposits during the three months ended March 31, 2026.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
Annualized on an actual/actual basis.