1. GBFH reported record net income of $5.2 million for Q4 2024. 2. SBA loan originations surpassed $500 million in 2024, fueling growth. 3. Net interest income is up 13.9% year-over-year, showing strong revenues. 4. Non-interest income increased 50.6% YoY, driven by loan sales and credit cards. 5. Total assets grew by 22.2% year-over-year, indicating strong financial health.
Strong financial results and growth metrics usually drive stock prices up.
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Sustained growth in key financial parameters can lead to long-term stock appreciation.
LAS VEGAS, Jan. 28, 2025 /PRNewswire/ -- GBank Financial Holdings Inc. (the "Company") (OTCQX: GBFH), the parent company of GBank (the "Bank"), today reported record net income for the quarter ended December 31, 2024, of $5.2 million, or $0.36 per diluted share. This represents a 48.6% increase from $3.5 million, or $0.27 per diluted share, for the fourth quarter of 2023. For the year ended December 31, 2024, net income was $18.6 million, or $1.37 per diluted share. This is a 70.6% increase compared to $10.9 million, or $0.84 per diluted share, for the year ended December 31, 2023.
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Edward M. Nigro, Executive Chairman, stated, "GBFH is growing as a specialized digital banking and payments company. For the year 2024, our SBA operations exceeded $500 million in loan originations, while our GBank Visa Signature® Card exceeded $73 million in transactions – with over $50 million in the 4th quarter alone. We are well-positioned for continued substantive growth in our specialized markets, especially with our sports and gaming products that provide important consumer protections."
The Company announced the completion of its $20.0 million Private Placement Offering (the "Offering") on October 16, 2024. Raymond James & Associates, Inc. and Janney Montgomery Scott LLC served as financial advisors on the private placement. The Company issued 1,081,081 shares of common stock as a result of the Offering. After deducting Offering related expenses, net proceeds to the Company were approximately $19.3 million.
Net interest income totaled $11.8 million for the fourth quarter of 2024, a decrease of $470 thousand, or 3.8%, compared to $12.3 million for the third quarter of 2024, and an increase of $1.4 million, or 13.9%, compared to the fourth quarter of 2023. The decrease in net interest income from the third quarter was driven by lower yields on variable rate loans, investments, and interest-bearing cash balances as a result of the full-quarter impact of the 50 basis point decrease in the federal funds rate enacted in September 2024 by the Federal Open Market Committee ("FOMC").
The Company's net interest margin for the fourth quarter of 2024 decreased to 4.53%, compared to 5.00% for the third quarter of 2024 and 5.16% for the fourth quarter of 2023. The decrease in net interest margin from both the third quarter of 2024 and the fourth quarter of 2023 is reflective of the full-quarter impact on variable rate loans, investment securities, and interest bearing cash balances of the 50 basis point decrease in the federal funds rate.
Non-interest income was $5.8 million for the fourth quarter of 2024, compared to $3.9 million for the third quarter of 2024, and $1.3 million for the fourth quarter of 2023.
Total gross loans were $849.3 million as of December 31, 2024, compared to $847.6 million as of September 30, 2024, and $682.9 million as of December 31, 2023. Deposits totaled $935.1 million as of December 31, 2024, an increase of $51.6 million from $883.5 million as of September 30, 2024, and an increase of $189.4 million from $745.7 million as of December 31, 2023.
The provision for credit losses on loans totaled $1.3 million for the fourth quarter of 2024, compared to $570 thousand for the third quarter of 2024 and $458 thousand for the fourth quarter of 2023.
The Company will host its fourth quarter 2024 earnings call on Wednesday, January 29, 2025, at 10:00 a.m. PST. Interested parties can participate remotely via Internet connectivity.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. This announcement is being issued in accordance with Rule 135 under the Securities Act.