#United States #Las Vegas #Banking #GBank FinTech #SBA Lending

GBank Financial Holdings Reports Strong Q4 2024 Results

GBank Financial Holdings Inc., the parent company of GBank, announced its fourth quarter financial results for 2024, highlighting an impressive upward trajectory in its metrics. The company reported a record net income of $5.2 million, or $0.36 per diluted share, reflecting a remarkable 48.6% growth compared to the previous year’s $3.5 million, or $0.27 per diluted share.

This robust performance resulted in an annual net income of $18.6 million, marking a 70.6% increase from $10.9 million in 2023. GBank's total revenue also soared, reaching $17.5 million for the quarter, an 8.8% increase from $16.1 million the previous quarter. Compared to the same quarter last year, the revenue jumped significantly by 50.6% from $11.6 million.

Key Highlights from the Fourth Quarter 2024

The financial highlights are commendable:

• - Record Net Revenue: $17.5 million.
• - SBA Lending and Commercial Banking: Loan originations totaled $120 million for the quarter.
• - Credit Card Transactions: Increased sharply to $51.7 million from $13.9 million in the previous quarter.
• - Deposit Growth: Total deposits grew by $51.6 million, representing a sequential increase of 5.8%.

Edward M. Nigro, Executive Chairman of GBFH, articulated the growth strategy: “We are evolving as a specialized digital banking and payments firm. Our SBA operations have surpassed $500 million in loan originations in 2024, and our GBank Visa Signature Card has exceeded $73 million in transactions.”

Financial Position and Business Developments

The company also completed a $20 million private placement offering in October 2024, which included 1,081,081 shares of common stock. This effort aided in raising approximately $19.3 million in net proceeds. The draft registration statement for the shares was submitted to the SEC in January 2025.

Despite some challenges in net interest income, due to low yields on variable rate loans and the recent federal funds rate decrease, the overall financial health remains strong. The company’s net interest margin slightly decreased to 4.53% from 5.00% in the previous quarter but increased when compared with the same quarter in 2023.

The provision for credit losses rose to $1.3 million, reflecting growth in non-guaranteed loans and increases in specific reserves for non-performing loans. Non-interest income also saw a substantial increase, totaling $5.8 million, driven by gains on loan sales and heightened credit card transaction fees.

Future Outlook

GBank Financial Holdings continues to embrace digital innovation in the banking sector, specifically focusing on gaming and fintech products. With a proactive approach, they are positioning themselves for future growth in the specialized markets of sports and gaming. The strategic partnerships and continuous enhancement of their product offerings, like the GBank Visa Signature Card, reinforce their commitment to expanding their market footprint.

In anticipation of their next earnings call scheduled for January 29, 2025, the management remains optimistic about continuing its growth trajectory in the evolving financial landscape. GBank’s unique offerings, including its collaboration with BankCard Services, LLC, enhance their service delivery in the burgeoning gaming market, thereby solidifying their competitive stance.

Conclusion

As GBank Financial Holdings Inc. reports record-breaking financial results for the fourth quarter of 2024, it becomes evident that their strategic initiatives are yielding significant outcomes. With continued growth in SBA lending, impressive revenue results, and innovative product offerings, GBFH is poised for a strong future in the ever-changing financial services sector.