GBank Financial (GBFH) Q4 2025 Earnings Call Transcript

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• Expected to maintain NIM at approximately 4.33% with non-interest bearing deposit growth offsetting Fed cuts

  80% confidence

• Zero fraud penetration in last 60 days after implementing new fraud prevention systems

  80% confidence

• Goal to replace $400M paid deposits with no-cost deposits via PPA growth

  80% confidence

• Approximately $2.5M deposits projected per 100 slot machines at 50% market penetration in mature market

  80% confidence

• Assumes 2 Fed rate cuts in 2026

  80% confidence

• Credit cards represent approximately 30% of all US payments, approximately $6T annually

  80% confidence

• Interchange fees drove approximately $7M increase year-over-year in FY2025

  80% confidence

• Credit card could potentially at least double $400M FY2025 volume, targeting $60-65M monthly by year-end

  80% confidence

• 65 Parapasu loans originated in 2025 (SBA $5M + additional CRE portion, total approximately $8-10M each)

  80% confidence

• Q4 2025 record quarterly earnings of $7.4M ($0.52 per diluted share), increase of $3.1M vs. prior quarter

  80% confidence

• 16 other PPA clients onboarded for various applications including sports apps and state lotteries

  80% confidence

• Q4 2025 government shutdown prevented approvals and left estimated $2M+ gain on sales on the table

  80% confidence

• 28 legal sports betting apps nationwide; GBFH customers use 20 of them

  80% confidence

• Net interest margin of 4.33% in 2025 vs. industry average of approximately 3.7%

  80% confidence

• Q4 2025 SBA originations of $118M, down from $200M+ in Q3 due to government shutdown

  80% confidence

• 8-year compound average growth rate of 28.3%

  80% confidence

• Approximately 7 states prohibit credit card direct loads to sports betting apps

  80% confidence

• Total SBA exposure of approximately $2.4B on and off balance sheet

  80% confidence

• January 2026: 12 loans sold for approximately $32M, 8 of 12 at ≥1.25% spread to prime, gap gain ≥4%

  80% confidence

• Individual lending power increased to 70% of legal limit: $32M to any one borrower

  80% confidence

• Q3 2025: 592 active hotel loans totaling $1.622B principal on and off balance sheet

  80% confidence

• Nevada has 150,000 slot machines; US total exceeds 800,000 licensed slot machines

  80% confidence

• From June 2015 to Q3 2025: originated $2.473B SBA loans (1,002 loans), total defaults of 12 loans, total charge-offs of $2.8M

  80% confidence

• Credit card transaction volume grew approximately 500% from $73M prior year to $400M in FY 2025

  80% confidence

• Gain on sale increased from 3.24% to 3.98% in Q4 2025

  80% confidence

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