GBank Financial Holdings (GBFH) investor relations material

Executive summary

• Net income for Q2 2026 was $5.5 million ($0.38 per diluted share), up from $4.8 million in Q2 2025 and $1.3 million in Q1 2026, with record net revenue of $22.0 million, an 11.7% sequential and 23.5% year-over-year increase.

• Leadership transition completed with Jeff Newgard as President and CEO, focusing on operational changes and organizational effectiveness.

• Noninterest income rose 69.9% year-over-year, driven by higher gains on loan sales and increased servicing and interchange fees.

• Gaming fintech initiatives advanced, including a major partnership with AXES.ai and continued rollout of BoltBetz and BVNKROLL platforms.

• Noninterest expense increased 15.4% year-over-year, with notable rises in loan-related and data processing costs, but improved efficiency ratio to 54.7%.

Financial highlights

• SBA loan originations reached $132.3 million in Q2, with $61.3 million retained at an average yield of 8.01%.

• Net interest income for Q2 2026 was $12.8 million, up from $12.4 million in Q2 2025, with net interest margin declining to 3.78%.

• Gain on sale income rose to $9.3 million for the first six months of 2026, up from $5.1 million year-over-year.

• Provision expense increased to $2.8 million, reflecting higher reserves for elevated non-performing assets.

• Total assets reached $1.4 billion, up 16.2% year-over-year.

Outlook and guidance

• Expectation of continued margin pressure but opportunities to optimize funding mix and enhance investment yields.

• Management expects stabilization in gaming-related credit card transaction volumes and sees growth in prepaid card products and digital payments platforms, with Visa Prepaid Card launch anticipated in Q4 2026.

• Allowance for credit losses likely to remain at current levels as SBA portfolio grows, with additional provisions possible due to economic risks.

• Anticipate some lift in gaming-related deposits in Q4, with significant growth projected for 2027 as digital gaming platforms scale.