Key Highlights

  • Shares are trading 18.46% lower at $13.91 on Thursday, October 29, 2026, against an implied prior close near $17.06 (calculated).
  • Net income for the third quarter was $3.9 million, or $0.27 per diluted share, compared with $5.5 million and $0.38 in the second quarter.
  • Net interchange fees dropped 84.6% to $0.3 million from $1.8 million in the previous quarter.
  • Net interest margin improved to 3.95% from 3.78%, although it stood at 4.35% a year earlier.
  • Non-performing assets totalled $54.2 million, or 3.72% of total assets.

GBank Quarterly Report: What Is Behind the 18.46% Fall After a Smaller Third-Quarter Profit?

GBank Financial Holdings (NASDAQ:GBFH) shares are trading 18.46% lower at $13.91 on Thursday, October 29, 2026, implying a prior close near $17.06 (calculated). The decline follows third-quarter results for the period to September 30, released Wednesday, October 28, 2026, with a management call that day.

Net income was $3.9 million, or $0.27 per diluted share, versus $5.5 million and $0.38 in the second quarter and $4.3 million and $0.30 a year ago. Adjusted net income, excluding about $0.6 million of pre-tax severance and fraud items, was $4.3 million, or $0.30, versus $6.3 million and $0.44.

GBank is a Las Vegas bank holding company with two branches, serving customers in Nevada, California, Utah and Arizona.

GBank Revenue Breakdown: What Did the Sports Betting Retreat Cost in Fees?

Net revenue was $20.3 million, down from $22.0 million in the second quarter and about level with $20.2 million a year earlier. Non-interest income slipped to $6.7 million from $9.1 million.

Net interchange fees fell to $0.3 million from $1.8 million after several large sports betting operators stopped funding accounts by credit card. Gaming card volume fell to $19.5 million from $84.2 million.

The gain on loan sales was $4.7 million on $84.5 million of loans sold, compared with $5.5 million on $110.1 million. The gain-on-sale margin improved to 5.57% from 5.04%, and SBA originations rose to $171.7 million from $131.4 million in the second quarter.

GBank Balance Sheet and Credit Quality: Do Margin Gains Offset Higher Foreclosed Property?

Net interest income increased to $13.6 million from $12.8 million, and net interest margin widened 17 basis points to 3.95% as earning assets shifted to loans, while the efficiency ratio worsened to 63.0% from 54.7%.

Net loans were $1.07 billion, up 2.3%, and total deposits were $1.16 billion, down 3.5%. Non-interest-bearing deposits dropped $36.9 million and certificates of deposit gained $79.4 million, while it carried $60 million of short-term borrowings, with none at earlier comparison dates.

The loan provision was $2.6 million, with $687,000 tied to a legacy retail credit card portfolio with elevated delinquencies. The allowance was 1.30% of loans, net charge-offs were $1.1 million, and non-performing assets were $54.2 million, down from $58.2 million in June. Other real estate owned grew to $10.9 million from $5.7 million, mainly on three commercial foreclosures.

Stockholders' equity was $175.4 million, or $12.08 per share, so the price is about 1.15 times book value (calculated).

Next Checkpoints: Year-End Targets and the Gaming Program Rollouts

The chief executive said the bank aims to fix its earnings problems and finish team-building by year-end, expecting 2027 to be a fresh start. The release gave no numeric guidance and said gaming payments should not add materially soon. Dated milestones are a BoltBetz launch at three Terrible's locations in early November, an integration by year-end 2026, and a LuckyLoads prepaid card in the second quarter of 2027.