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GBank Financial Holdings shares drop as Q2 earnings miss estimates

Published 28/07/2025, 22:56
GBank Financial Holdings shares drop as Q2 earnings miss estimates
GBFH
-5.75%

Investing.com -- GBank Financial Holdings Inc. (NASDAQ:GBFH) shares tumbled 5.4% after the company reported second quarter earnings that fell short of analyst expectations, despite posting record loan originations and revenue growth.

The Nevada-based financial institution reported second quarter net income of $4.8 million, or $0.33 per diluted share, missing analyst estimates of $0.39 per share. Revenue came in at $17.8 million, representing a 2.4% increase from the first quarter of 2025 and a 14.6% rise YoY. The company’s SBA (LON:SBA) lending and commercial banking loan originations reached an all-time record of $160.5 million for the quarter.

The earnings miss comes as the company faced headwinds in its credit card business and experienced lower-than-expected gain on loan sale margins. Net interchange fees declined to $1.5 million on credit card transaction volume of $82.2 million, compared to $2.0 million on volume of $105.6 million in the previous quarter.

"Our second quarter non-interest income declined by 1.5% compared to the first quarter of 2025 as a result of our pause in credit card issuance and further by the lower-than-expected gain on loan sale margin for SBA loan sales of 3.16%," said Edward M. Nigro, Executive Chairman of the Company.

The company’s net interest margin decreased to 4.31% from 4.47% in the previous quarter, primarily due to a slight decrease in loan yield and lower yield on investment securities. Total (EPA:TTEF) loans increased to $871.6 million, up from $843.4 million at the end of the first quarter.

Non-performing assets, excluding guaranteed portions, were $4.6 million as of June 30, 2025, representing 0.37% of total assets, an improvement from 0.48% at the end of the first quarter.

Despite the earnings miss, management expressed optimism about future performance, noting that credit card applications have restarted and third quarter transaction volume is already trending 35% above second quarter levels.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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