GBank Financial Holdings Inc. Announces Quarterly Operating Earnings

Rhea-AI Summary

GBank Financial Holdings Inc. (OTCQX: GBFH) reported a strong first quarter of 2021, with earnings of $1.04 million, marking a 52% increase year-over-year. Earnings per diluted share rose to $0.08. Total assets grew by $174 million, or 50%, to $520 million. Additionally, net loans and total deposits increased by 37% and 54%, respectively. The company's nonperforming assets remained low at 0.24%.

Positive

• Earnings increased by $0.36 million, or 52%, to $1.04 million.
• Earnings per diluted share rose to $0.08, up from $0.06.
• Total assets grew by $174 million, or 50%, to $520 million.
• Net loans increased by $88 million, or 37%, to $327 million.
• Total deposits rose by $154 million, or 54%, to $438 million.
• Total equity increased by $7 million, or 13%, to $66 million.
• Book value per share grew by $0.60 to $5.39.

Negative

• None.

LAS VEGAS, May 25, 2021 /PRNewswire/ -- GBank Financial Holdings Inc. ("GBank" or the "Company") (OTCQX: GBFH), the parent company for Bank of George (the "Bank"), today announced earnings for the first quarter of 2021 of $1.04 million, an increase of $0.36 million, or 52%, from the $0.68 million for the three months ended March 31, 2020.  Earnings per diluted share increased to $0.08 for the three months ended March 31, 2021, up $0.02 from $0.06 for the first quarter of 2020. 

Financial Highlights: March 31, 2021 compared to March 31, 2020

• Total assets increased by $174 million, or 50%, to $520 million.
• Net loans increased by $88 million, or 37%, to $327 million.
• Total deposits increased by $154 million, or 54%, to $438 million.
• Total equity increased by $7 million, or 13%, to $66 million.
• Book value per share increased by $0.60, or 13%, to $5.39, up from $4.79.
• Nonperforming assets remain low at 0.24% of total assets, or 0.06% net of guarantees.
• The allowance for loan losses to total loans, excluding PPP and guaranteed loans, increased to 2.15%.

Edward M. Nigro, GBank Executive Chairman, stated "As we position the company to continue to navigate through the challenges relating to the COVID-19 pandemic, we are maintaining our extraordinary measures to protect our employees and clients while providing maximum support to all the communities we serve.  We are pleased to report continued record growth in all our key business lines and have a positive outlook for continued strong performance for our company as the economy continues its path to reopening."  

The Bank's SBA Division continues to set records for new loan origination activity and, on a trailing twelve-month basis through March 31, 2021, generated total new loans of approximately $202 million, excluding Paycheck Protection Program loans ("PPP").  Since its launch in 2015, the Bank's SBA Division has originated a total of approximately $682 million in total loans.

Beginning in March 2020, and with 100% of loan portfolios performing as agreed, the Bank was able to implement the Bank of George Business Relief Plan.  This bold initiative utilized the Company's sizable financial strength to support all of the Bank's communities and clients.  Under this plan, the Bank offered all of its borrowers optional three and six-month payment deferrals for full principal and interest.  As the payment deferral status ended, borrowers resumed making their scheduled payments and are no longer considered as being in an active deferral status.  At March 31, 2021, the balance of loans in an active deferral status were at approximately $27.9 million.

A key provision of the CARES Act was the SBA Debt Relief Program, whereby the SBA makes six months of principal and interest payments on qualifying existing and new SBA loans.  This has been an incredibly powerful resource for SBA borrowers and, with all the Bank's SBA 7(a) loans in regular payment status, nearly all of the Bank's SBA borrowers were able to benefit.  As of March 31, 2021, approximately $11.7 million in the Bank's loans were continuing to receive support under this program.  Moreover, under the Economic Aid Act, continuing SBA payment support of up to $9,000 per month is anticipated for a significant majority of the Bank's SBA 7(a) loan portfolio with approximately $63.6 million in loans receiving support under this program at March 31, 2021.

As an SBA PLP lender, the Bank has also been able to play a critical role in offering loans through the SBA Paycheck Protection Program ("PPP").  To date, the Bank has approved and funded approximately $81 million to 573 individual small businesses and non-profits.  These vital funds have supported keeping nearly 7,000 employees on the payroll.  PPP Loans as of March 31, 2021 were approximately $57 million. 

The Company's FinTech activities continue to demonstrate high levels of growth.  Total FinTech related accounts were approximately 500,000 at March 31, 2021, up 130%, from approximately 217,000 at March 31, 2020.  Payment load volumes for the quarter ending March 31, 2021 were approximately $168 million, up 102% from approximately $83 million for the quarter ending March 31, 2020.

GBank's consolidated on balance sheet liquidity and capital positions continue to amongst the highest of all its relative peers.  Cash and due from banks surged to approximately $176 million at March 31, 2021, representing 34% of total assets.  Regarding the Company's capital position, T. Ryan Sullivan, GBank President/CEO, said "With total equity of nearly $66 million, and a current equity capital ratio of 12.6%, we are uniquely positioned to fully support our clients while continuing to aggressively implement our business growth strategies." 

The Company

GBank Financial Holdings Inc. ("GBank" or the "Company"), a bank holding company with approximately $520 million in assets as of March 31, 2021, conducts business through its wholly owned subsidiary, Bank of George (named in honor of George Washington).  Founded in 2007, the Bank operates two full-service commercial branches in Las Vegas, Nevada, with primary lending activities focused on engaging clients in Nevada, California, Utah, and Arizona.  Additionally, the Bank conducts business nationally through its SBA lending activities (ranked 17th in the nation by the U.S. Small Business Administration for SBA 7(a) dollar loan volume through September 30, 2020) and its BankCard Services ("BCS") partnership. Launched in 2016, its Financial FinTech Division is powering Sightline Payments Play+ Solution (https://sightlinepayments.com/) for seamless and secure pay and play that is enabling cashless, mobile commerce solutions for gaming, lottery and sports betting ecosystems – positioning GBank as a financial leader in this new payments world. The Bank also provides general commercial banking services with an emphasis on serving the needs of small- and medium-sized businesses, high net worth individuals, professionals and investors.  The Bank offers a full complement of consumer deposit products and is focused on delivering a premium level of service.  Bank of George has been recognized every year for each of the past five years by S&P Global Market Intelligence as a top 100 U.S. community bank under $3 billion in assets.  For more information about Bank of George, please visit its website at https://www.bankofgeorge.com. GBank's Common Stock is quoted on the US OTCQX Market under the symbol GBFH.

Forward-looking Statements

GBank has made forward-looking statements in this Press Release. These forward-looking statements are subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of operations of the Company and its subsidiaries. When words such as "believes," "expects," "anticipates," or similar expressions occur in this Press Release, the Company is making forward-looking statements. Note that many factors could affect the future financial results of the Company and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in the forward-looking statements contained in this Press Release. Those factors include, but are not limited to: the recent and continuing coronavirus (COVID-19) pandemic which poses risks and may harm the Company's business and results of operations in future quarters, credit risk, changes in market interest rates, inability to achieve merger-related synergies, competition, economic downturn or recession, and government regulation and supervision. The Company undertakes no obligation to update or revise any forward-looking statements.

 

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SOURCE GBank Financial Services Inc.

FAQ

What were GBank Financial Holdings' earnings for Q1 2021?

GBank Financial Holdings reported earnings of $1.04 million for the first quarter of 2021.

How much did total assets increase for GBank as of March 31, 2021?

Total assets increased by $174 million, or 50%, reaching $520 million as of March 31, 2021.

What is the earnings per share for GBank in Q1 2021?

Earnings per diluted share for GBank in Q1 2021 increased to $0.08.

What were the total deposit figures for GBank as of March 31, 2021?

Total deposits for GBank increased by $154 million, or 54%, to $438 million.