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Image source: The Motley Fool. Wednesday, July 29, 2026 at 5:00 p.m. ET Executive Chairman and Chief Executive Officer - Edward Nigro Vice Chairman - Todd A. Nigro President, Chief Executive Officer, and Director - Jeffery Newgaard Principal Financial Officer - Olivia Cayley Operator: Hello, and welcome to the gBank Financial Holdings Inc. Q2 26 Earnings Call. We ask that you please hold all questions until the completion of the formal remarks. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. With me here today are Edward Nigro, Executive Chairman and CEO Todd A. Nigro, Vice Chairman Jeffery Newgaard, president, CEO, and director of gBank and Olivia Cayley, Principal Financial Officer. The related Q2 earnings press release was filed with the U. S. Securities and Exchange Commission today and is available on the News and Media section of our website. Gbankfinancialholdings.com. Before we begin, I would like to remind everyone that any forward looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated future results. Please see our Safe Harbor statements in our earnings press release. All comments expressed or implied made during today's call are subject to those safe harbor statements. Any forward looking statements made during this call are made only as of today's date, and we do not undertake any due duty to update such forward looking statements except as required by law. Additionally, during today's call, we may discuss certain non GAAP financial measures, which we believe are useful in evaluating our performance. A reconciliation of those non GAAP financial measures to the most comparable GAAP financial measures can also be found in our earnings release. I would now like to pass it over to Edward Nigro, executive chairman and CEO. Edward Nigro: Good afternoon, everyone. We have some extraordinary events to discuss today, not only important issues impacting g Bank's financials, but also new gaming fintech initiatives. However, right now, and most importantly, I have the pleasure of introducing our new g bank president and CEO, Jeffery Newgaard Jeffery joined us on 06/08/2026 and already, he is prepared not only to discuss his first impressions, but also to report on key financial results of g bank. Jeffery Newgaard. Thank you, Edward. it is great to be here. In my initial assessment of the organization, I found a successful bank with a bright future. The culture throughout the organization is positive, collaborative, and deeply focused on serving our customers and communities. I have been warmly welcomed by team members across the bank, and their enthusiasm, professionalism, and commitment have made my transition both enjoyable and productive. I have also appreciated the opportunity to work closely with Edward. Whose support and alignment on key priorities have been instrumental in ensuring a smooth leadership transition. As part of our ongoing focus on organizational effectiveness, we accepted the retirement of our Chief Operations Officer and promoted our operations manager, to Director of Operations. After evaluating the bank's leadership structure, and operational needs, I determined that the COO position will not be replaced at this time. This approach allows me to remain closely engaged in the bank's operations, while maintaining strong leadership oversight and organizational efficiency. To further strengthen our operational and risk management capabilities, we engaged an experienced IT consultant to conduct a comprehensive review of our technology operations and cybersecurity risk profile. The assessment is complete, and we are actively implementing recommendations designed to enhance our technology infrastructure. Improve operational resiliency, and further strengthen our cybersecurity posture. I also found our SBA team to be 1 of the organization's greatest strengths, consistently delivering strong production and earnings results. At the same time, we have experienced an increase in SBA problem assets over recent quarters. Which I will address in greater detail during the credit quality discussion. Within finance, we identified a need for additional leadership and support in financial management and reporting. Given that our CFO, who has been on medical leave, will not be returning to the organization, we engaged an experienced CFO consultant to provide continuity and leadership while we conduct a search for a permanent replacement. During this transition period, management remains focused on improving net interest margin, enhancing financial performance and optimizing overall balance sheet Finally, I found our compliance department to be 1 of the organization's core strengths, The team has built a strong compliance culture and framework that positions the bank well to meet evolving regulatory expectations. Their expertise and commitment provide a solid foundation for the bank's continued growth and success. Overall, my observations reinforce my confidence in the strength of this organization. The quality of its people, and the opportunities that lie ahead We are well positioned to build on our successes address areas for improvement, and continue creating long term value. For our shareholders, customers, employees, and communities. With that, let me turn to our second quarter performance. Loan production remained strong during the quarter. With $131 million in SBA loan originations, of which $61.3 million was retained on the balance sheet at an average yield of 8.01%. Our conventional loan portfolio also continued to grow. Increasing by $855 thousand with $324 thousand retained and an average yield of 8.53%. The strategic alignment of SBA loan originations with targeted minimum gain on sale objectives has significantly improved both loan spreads to prime and the market pricing of sold loans. As a result, gain on sale income increased from $5.1 million for the first 6 months of 2025 to $9.3 million for the same period in 2026. These attractive yields and improved sales margins continue to support earnings growth, position us well as funding costs normalize and reinforce our commitment to further enhancing profitability and performance. Despite strong production, several factors negatively impacted quarterly results. First, provision expense increased by $2.8 million from $2.3 million in the first quarter. Reflecting higher reserve requirements associated with elevated nonperforming assets. Which I will discuss in greater detail during the SBA credit quality review. Second, net interest margin declined to 3.78% driven primarily by a 7 basis point decline in loan portfolio yields and the continued impact of an elevated funding cost environment. Despite this margin compression, average loan balances increased approximately $60 million quarter over quarter contributing to a $1.1 million increase in loan interest income. Compared to the first quarter. While margin pressures remain a near term challenge, we see opportunity. To explore our funding mix, to reduce our overall cost of funds, As higher cost certificates of deposit mature, we are actively transitioning toward lower cost funding sources, including money market deposit accounts, and the strategic use of FHLB advances where appropriate. We are also evaluating opportunities to enhance investment portfolio yields through disciplined balance sheet management and asset allocation strategies. To support these initiatives, we have engaged an experienced CFO consultant and Darling Consulting Group to assist management in developing strategies to optimize net interest margin while maintaining prudent liquidity, capital, and interest rate risk management. Looking ahead, our focus remains on enhancing profitability through disciplined balance sheet management improving our funding mix and continuing to leverage the strong yields generated by our lending platforms. Turning to SBA credit quality, it is important to understand how our lending model differs from many SBA lenders. We operate as a collateral based SBA 7a lender. As a result, when a loan becomes nonperforming, we repurchase the guaranteed portion and report the entire loan balance as a non performing asset. This methodology can cause our reported non performing asset levels to be higher than our actual risk and distort reserve to NPA comparisons with our peers. Consequently, changes in our reported NPA balances reflect not only credit deterioration, but also the repurchase of previously off balance sheet assets. Our actual economic loss exposure is significantly mitigated by both collateral protection and SBA guarantees. Most SBA 7a loans carry a 75% guarantee while certain loans originated during the pandemic. Benefit from guarantees of up to 90% However, asset quality remains a top priority. We continue to invest in our SBA credit administration and special functions and we are aggressively managing problem credits. Particularly within our maturing hotel portfolio. Where industry pressures have contributed to a more mature portfolio and elevated non performing loan levels. To strengthen portfolio performance and enhance future underwriting decisions, we have developed proprietary analytics focused on 3 key drivers of credit performance. Geographic location, borrower capitalization, and management quality performance. We are intensifying collection efforts, expanding our focus on the early identification of financial stress, and developing earlier engagement to preserve borrower relationships and minimize losses for borrowers' SBA and G Bank. Additionally, we recently realigned the special assets group under the leadership of the chief credit officer. And enhance the function through targeted staffing investments These changes strengthen coordination between special assets and loan servicing. Improve information sharing, and support earlier intervention on emerging problem credits. We have also increased our focus on resolving troubled assets and accelerating OREO dispositions. Collectively, these actions are expected to improve workout efficiency, maximize recoveries, reduce risk, and support the long term performance of the portfolio. While we expect these initiatives to drive positive long term results, we also anticipate that the allowance for credit losses may remain at current levels in the near term as production remains strong and the SBA portfolio continues to grow. Maintaining appropriate reserves reflects our commitment to prudent risk management and ensures the bank remain well positioned to absorb potential losses while supporting future growth. Our focus remains on balancing portfolio growth with disciplined credit administration, proactive risk monitoring, effective workout strategies, and the maximization of recovery values through collateral protection and SBA guarantees. We believe these efforts position the bank to effectively manage current credit challenges while continuing to support profitable long term growth. Thank you, and I now return to Edward. Thank you, Jeffery Newgaard. And thanks for absorbing so much so fast. I think that is what happens when you have a real pro on your hands. And I cannot tell you how enthusiastic I am to have Jeffery at GBA. I will now address certain gaming fintech events. I know everyone wants to hear more details regarding the bankroll access agreement, which is indeed an inflection point for G Bank. Earl Hall Axis' cofounder and CEO, is a very renowned gaming and payments industry leader. Since 2005. it is important to know that all our gaming payments initiatives our pool player accounts, our Visa credit cards, our upcoming Visa prepaid cards, and gBank's noninterest bearing deposits shall all be impacted by our BoltBetz, Terrible's, and our future platforms. In the interim, however, our gaming credit card business was adversely impacted by 2 key developments during Q2. First, credit card interchange income declined. Due to major sports betting operators eliminating or restricting the use of credit cards. that is right. Eliminating or restricting. This resulted in significantly lower transactions for us. Because our players were using these larger platforms for very high level gaming. And gaming transactions. So our transactions declined to 84.2 million in Q2, and we anticipate some further contraction Until late Q4. This was a key income variation for us. And a disappointment for us. Because the credit card was well accepted was well defined, and a top earner for the bank. Secondly, elevated delinquencies among retail only cardholders drove an addition to the Q2 loan loss provisions of approximately 771 thousand. I hope the day comes I can stop talking about the impact of our retail cardholders. These card holders are being reduced and we anticipate these delinquencies to be reduced as well. We do not market retail users. As we had discussed prior, fraud was a non event. Despite these challenges, we do remain optimistic about the long term prospects of g bank credit card. Traditional casino patrons rely on cash from ATMs kiosks, and casino cages to fund gaming activities. And as our current and future digital platforms expand, gBank gaming cards shall be well positioned to become an increasingly important funding source within all of our partners' gaming ecosystems. On the horizon, we have our Visa prepaid card. it is currently in testing and commercial launch is expected during the fourth quarter. Importantly, this prepaid card will be directly integrated with gBank's pool player account. That infrastructure is going to provide functionality and payments not available to any other prepaid card. And we will be getting into that subject matter more as we develop the product more. The G Bank credit and prepaid cards will be integrated across bankroll, and we believe these products will further strengthen our position as a leading banking and payments partner to the gaming industry. Bankroll not only has a new partnership, but also its own website bankroll.com. But remember, use the brand name, an upside down a or a v. it is fun. Now, Todd will continue to brief us. Todd. Todd A. Nigro: Thank you, Edward. I will begin with an update on bankroll. On our last call, we introduced bankroll and noted that both BoltBetz and bankroll had active and developing pipelines and we are excited about Bankroll's execution of its first enterprise agreement. On July 21, we announced a strategic partnership with Axis, the developer of the world's first cloud native intelligent management system for the global gaming industry. Serving 67 gaming operators and distributors across 12 states. Under the agreement, Bankroll will serve as the white labeled payments infrastructure powering an Axis branded enterprise digital wallet. To be deployed across the Axis operator network. Axis is working on its first operator now. This partnership illustrates a key distinction between BoltBetz and Bankroll. BoltBetz is our direct to operator platform, where we manage the operator relationship and the patron experience. Bankroll is the infrastructure layer. When an enterprise partner like Access deploys bankroll, they own the brand, the operator relationships, and all marketing and business development efforts. Our role is to power the platform invisibly. This is what makes Bankroll highly scalable. Every new operator Axis brings on to their platform is a new source of patron accounts held at gBank, without requiring additional direct effort on our part. The bankroll pipeline continues to grow, and we look forward to sharing updates on Axis operators and distributors as they sign on to the plat platform. On the BoltBetz front, I am pleased to report that Terrible's Gaming has received approval from the Nevada Gaming Control Board to deploy the BoltBetz platform. The approval was granted with 60 days of application. A timeline we believe reflects the strength and credibility of the regulatory framework we have built. As was the case with Distill Taverns, the reserve requirement was waived, as patron funds are held at G Bank rather than by the operator. Or fintech. This continues to demonstrate the structural advantage of G Bank's role as sponsor bank and the confidence regulators place in the model. We are currently in the technical integration phase with Terrible's gaming. With a targeted initial rollout at select grocery stores later this year. We look forward to sharing further updates on that launch as we progress. On the Distill Taverns deployment, we are now accumulating meaningful data on patron behavior. We had a 4-fold increase in sign ups driven by the improvements in v 2, a persistent concern in taking the gaming industry cashless has been the assumption that players will resist the identity verification requirement for compliance. Our early results suggest that resistance is far lower than the industry has assumed. While we continue to improve the patron experience, we are now focused on increasing sign ups visit frequency, and patron worth as we scale the Distill Taverns deployment. I will now turn it back over to Edward. Edward Nigro: Thank you, Todd. In closing, we continue to operate from a position of strength. We maintain a strong capital base, a very differentiated business model, an experienced management team, and a culture focused on execution and innovation. And I am extremely encouraged by the leadership transition underway at gBank. Having worked closely with Jeffery over the past few weeks, I am confident that his experience, strategic focus, in disciplined approach will be valuable assets to G Bank. And now I would like to open it to questions. Operator: Thank you. At this time, if you would like to ask a question, please click on the raise hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen from the host allowing you to talk, and then you will hear your name called. Please accept, unmute your audio, and ask your question. We will wait a moment for the queue to form. Our first question will come from Joe Yakunich with Raymond James. Your line is open. Please go ahead. Analyst: Hey there, guys. Good afternoon. Hello. Hello, Joe Yakunich. Access bankroll partnership and kind of more specifically the economics behind it. So what does the first signed Access contract actually mean? Economically for g bank and bankroll? And when should investors expect to see, you know, the contribution from this? Edward Nigro: Okay. Joe Yakunich, this is Edward. I believe I understand the question. It was a little garbled to me, but what you were asking me is what are the economics, so what do the economics mean to g bank on the access transaction with Bankroll. Yeah. I was just hoping you could kind of talk about how that will impact g bank financially and, you know, any sort of expected timing. Sure, Joe Yakunich. Let me start by saying this agreement was just executed on July 21. So, you know, a week ago. And access, if you go on to their website, and I think you have, you have seen is a substantial company with many operators across 12 states, 67 operators, So to try to give some insight and I know Todd's traveling and trying to get back to help answer some of these questions, but to give some insight into it, Todd had advised me that he and Earl are moving very quickly to integrate their--their first operator. And their first operator out of the 67 he has over 3 thousand slot machines. he is a little larger than Terrible's. And that is just his first operator. Now he has a platform. He has a very substantial platform for these distributed gaming operators. That are in these many states. So when we talk about the integration, his--well, his first operator is the size of Terrible's. Give you an idea of the potential financial impact you know, that 125 machines. Terrible's has patrons, and they are business lines of about 250 thousand. And Earl has patrons in the millions. And I believe, Todd, did you join? Are you on the line? Yes. I am. Well, why do not you go ahead and talk about what you think the impact of the Axis transaction will do? And I do not mean necessarily think it is early to let me just add this 1 aspect. The entire goal in the beginning was to have the transactions that are normally held in the funds that are normally held by the gaming operator to be held by g bank. And that is the fundamental formula that is very important. In addition to that, we are also going with the verticals of our credit card our prepaid card, which are going to also generate income for the bank as well. So we plan on a total vertical integration, but most importantly, will be the replacement of our deposits are expensive deposits. And how fast that transition takes place. Remember, we are transitioning the gaming bricks and mortar gaming from cash to digital. And the transition to each operator is a process. And I will let Todd talk a little bit about that process. And then I will finish up with some of what we think the impact is. Todd A. Nigro: Yes. So, Joe Yakunich, just some just some high level data points. So the way that, that all of the organizations benefit economically is, obviously, there is a fee structure related to the bankroll platform. And as Edward explained, the deposits will end up, coming into GBANK for the patron wallets for each of the gaming operators. I think that it is you know, I understand everybody wants to jump to the finish line. When we sign a new operator. Especially 1 like Access. But I think what Edward alluded to is I everybody needs to appreciate the complexity of an organization like this. You know, he is in 11 different states. he is got 67 different clients, if you will, representing you know, a machine count that is 10x larger than collective of, distilled and terribles together. And the breadth of that contract alone is very large, and at the same time, it makes it complex in that we have to roll out each 1 of those gaming operators of his independently even though they are all running under his casino management system. So it has a lot of upside, and it has a lot of integrations that we have to do. But I think to what Edward alluded to is, Earl moves pretty fast. he is a very ambitious person, and he already has his first gaming op operator that he is negotiating with to launch our platform. And 1 of the things that is fantastic about Earl is that he understands the true benefit of having a bankroll product embedded in his casino management system because it smooths, many of the friction points for cashless to be rolled out at a gaming operation. So it is it is tough given that we just signed the deal with Earl. Our tech development teams, his and ours, are working on the integrations right now. His system is new to us. it is not 1 of the systems we had worked with before. So there will be some things that we have to do in order to in order to roll it out. But, I can tell you this about Earl is that it is not just getting his existing customers on cashless. He views this as a opportunity to expand his breadth in the distributed and non gaming world. When I say nondistributed, I mean bricks and mortar casinos. And, here's a high level data point for everyone, is that there are approximately 250 thousand distributed gaming machines across the country in 11 states. Those are when you say distributed gaming, those are organizations like Terrible's. These are the restaurants, the gas stations, convenience stores, gaming. These are not bricks and mortar. Single casinos. Earl probably represents, we do not have the authority to disclose, you know, confidential details of 20-plus percent of that market already. So there is a great opportunity for us to grow with him, in the future, and we are just really excited about the opportunity. But the monetization will come in the way of it is the same thing that we talked about with BoltBetz and Terrible's. it is fees and it is deposits and it is part of the, you know, the business plan that we have been trying to roll out. Analyst: Got it. I appreciate a very thorough answer, and seems like a pretty big contract win there. So congrats on that. Edward Nigro: Thank you. Stepping over to gaming deposits, kind of a similar theme. So how much in gaming related deposits are currently on the balance sheet? And what would you say is a realistic year end target? It sounds like it is not going to be a big contributor, but by that by year end, you know, the Terrible's rollout should have already begun. Just trying to get a sense for, you know, that kind of near to intermediate term growth. I can handle that 1, Joe. Right now, we have about we average daily from $35 million to $50 million. In balance sheet from gaming operations. We have said that we had anticipated this to be expanding in the fourth quarter, but because of the delays last year in the gaming control board and the launching and licensing of both bets in the process, we fell behind about 10 to 12 months. So I really expect, you know, with the launching remember, the taverns are small, relatively small, and we projected at the most about 2 million in deposits from that activity. And we are starting to see that grow now. Slowly but surely. And the other thing, so that we remember, when we board a gaming operator, soon we will be seeing we have to have an operating account, a reserve account, and then the account that has the deposits of all the gamers activities. which is the transactional account. So those 3, you know, for the taverns, we said it will be a couple of million, and that is a roughly around 100 slots. So you can take the numbers and multiply them there. But what Todd mentioned, if you do the math, remember, I said the entire state in Nevada had 150 thousand slot machines, and all of a sudden, we are in onboarding companies that have about 20% of that number. So we are starting to show some significant market penetration. And when we start to talk about the kind of deposits and numbers, I cannot say how fast the transaction will take place. But I do not think our deposits are going to grow significantly this year. We think we will see some lift, you know, in the fourth quarter, but primarily, you know, 2027 is going to be our year But once we know and we will share this with you, once we know how these transactions I mean, how the transformation occurs, how fast it occurs, how fast these players adapt, We will be able to put together some reasonable, you know, assumptions for you or at least some reasonable market considerations of what the market is. But when you take a market size, remember I said Nevada had a 150 thousand machines, and last year, they won $10 billion. The transactions for that would have been about $50 billion. And so if a 100 and some thousand machines can have 50 billion in some of these markets, the concentration of these slots is as bit is equal to the earnings per day of slots and in Nevada. I mean, these are highly concentrated uses. Taverns are used even more than the average large casino is. Because of the fact that there is so few machines and so many more patrons. So I think that the market that we are entering into even with the products we have signed now, you know, just by the virtue of the amount we are talking about has transacted in the billions. And so we think that we are we are approaching it correctly. We believe that we have to do it correctly and well. And be well prepared to manage it, and that is what we are working on. And I hope that helps you. Yeah. That was a great answer. And then just kind of 1 more from me here. Try to bring Jeffery into the fold. So in relation to the IT side review, what were the most important findings that the outside consultant identified I mean, are there any recommended fixes that were material enough? And you know, if you could comment on how you expect this will impact the expense run rate from here? Okay. Let me let me weigh in that first, and I will let Jeffery follow-up. But just about the time Jeffery was arriving, I had made the decision that our IT was heading in a direction that was not going to meet our specific business objectives. That the internal development of this site and the internal development of our own AI once we really started to identify its business plan, was beyond the financial economics that we would want to address. Meaning, it was way too expensive. And when I really dug into how long how much it would take to manage it and keep it updated, it too would not fit our objectives. But most importantly, the time it was going to take to complete the development was not matching the time we needed to be prepared to handle high volume. And so we made a change. And 1 of the first things I asked Jeffery was, to help address and solve the IT issue with respect to having a good solid banking IT person, but also when and with that, we are tackling the technology we need to manage these systems on a large scale because BoltBetz has already developed the API technology and we are going to be moving through a bankroll and the bank side of that API very quickly because we have experienced coders, developers, and builders. So what we needed was a really good connection at the bank side. And, I will let Jeffery answer that because I think he found a really wonderful solution to us, whom, by the way, has already been accepted with welcome arms by all of our other tech sources, including, you know, bankroll, BCS, BoltBetz, Yeah, Jeffery. So the first thing is I wanted to be sure that our cybersecurity profile was good. We got to make sure that we just verify that everything was secure. And we brought in this IT consultant who by the way, was my CIO chief information officer of at Bank of Idaho, my last bank. And I knew him for about 10 years and I trusted him. He did a really good job. And was really accomplished on the cybersecurity side as well as the other aspects. He even had a medical background as far as on the IT side. So very good background. Good in banking, The good news is we are secure on the cybersecurity side. He found that to be in good shape so we are secure there. The recommendations are really centered around reporting. And infrastructure areas that we can be more efficient and effective and just operate better. And he is already had those recommendations being resolved as we speak. he is made an impact on our reporting side. So that we can monitor some of these activities and know better what is going on in real time. The other aspect that Edward mentioned was with the development of these payment rails and how things move to our core and to the APIs and all those things he can help guide that in a compliant way from the bank side. And really works well with the fintech side. Yeah. it is it is been it is it is it has been an immediate result. I am really pleased about too because there are many great sources that we can use and implement much faster. That will create the AI and the API systems in the internal technology platforms that we want, that we could acquire much faster and in a much better pace. It took a it was a very good initial process because it opened our eyes to many, many things and it educated us. And as we became more educated, we were able to pick some better solutions. And, I think this is the best. I hope answered your question. No. That was great. Thanks for taking my questions. Operator: Your next question will come from Matthew Erdner with JonesTrading. Your line is open. Please go ahead. Matthew Erdner: Hey, good afternoon, guys. Thanks for taking the question. Jeffery, welcome. Excited to start working with you. Analyst: You touched a little bit about kind of the CECL and the NPAs. You know, as it relates to the way that you guys have to account for those. Could you refresh me, you know, on the kind of the inner workings of how that, I guess, kind of works and just overall structure there? Edward Nigro: On our NPAs, Matthew, this is Edward. Since I own most of the quarter, and Jeffery is absorbing it really fast. I think I might address that. If you are talking specifically about our provision, this time of 2.8 million Yeah. Matthew Erdner: A little bit about that, but mostly kind of the NPAs getting elevated to 4.2%. Edward Nigro: Oh, sure. Sure. Let me talk first about the elevated NPAs. I would like to respectfully point out that in the past, we have had so many months and so many quarters and so many years of zero nonperforming assets, anything we do is elevate. But there is a point at which we are now having a mature a more mature portfolio. And that portfolio of SBA loans and other CRE loans are now totaling $2.3 billion that we manage. And only--you know, our total assets on balance sheet are 1.4 billion but we are really managing 2.3 billion now, almost 2.4 billion in loans. And so when we look at our nonperforming assets, we always have to remember that it is in consideration of the 2.4 billion because of the way we administer it. Now our nonperforming assets are now at 60 million. And we fully expect them to grow reasonably as our as our loan portfolio grows because we have a we have a thousand loans in that portfolio now. You know? And we have let me give you an example of how it works. So we are at 60 million right now in our nonperforming assets. And if you look at our balance sheet of 1.4 billion you say that is high. And that really and our Ubiparid appears very high at over 4%. But let me tell you, give you an analysis Let's take that 60 million. Right now today, and let me tell you how we are managing that and what is going to happen to that 60 million. And what it really means in the loan loss to us. We take the 60 million. It goes in our special assets division, which, by the way, we built up over the last year and a half, especially this last year, it is a very significant division of our bank that actually moves and manages these nonperforming assets liquidates them, gets them sold, and gets them off our balance sheet. Well, if we take that 60 million and I use a historical analysis of what our provisions have been or how we have handled the provisions in this special assets. We will take the full 60 million and our recovery has been better than this number, but I am gonna use this number to give you an example. Remember, we are collateralized. So by the time we just dispose of that asset, resell it, or and often resell it before foreclosure, go to foreclosure, and even in certain instances, not many, we go to OREO. We take that 60 million and we know that we are gonna recover or we believe, based on our history analysis, that 70% recovery of that 60 million will happen in special assets, meaning when we liquidate the collateral. That means that we will sell off and 42 million of the 60. 18 million will be a loan loss. Of the 18 million 25% of that is ours. 75% is guaranteed by the SBA. So 25% of the 18 million is a 4.5 million anticipated loss. So in that 60 million we are anticipating loss of about 4.5 million. Now that is not an unreasonable amount when you consider how it works. Now let's take another aspect of that. Let's look at that 60 million. In our special assets right now, we put 60 million Our special assets based on my daily involvement with them, anticipates that the minimum of 20 to probably 30 million of those special assets will be gone by September 3 by the end of September. Meaning we will have moved them through special assets. that is the kind of operation we have. We are not gonna let these mature on our balance sheet. And we particularly do not want closed hotels, although we have 1 right now And we want to make sure that we move some of these very quickly. So when we start looking at a mature portfolio, to have $60 to 80 million or somewhere, you know, and growing is not unusual for us and is not necessarily elevated in the sense of how we manage If you take a look at the kind of income we generate out of our SBA operations, gross income, not net income, but gross income, when we are doing about 90 million a year in revenue, through all the sources, through the gain on sale, which you saw went up to 9 million from 5 million at the same time the year before, the same 6 months, we will manage these special assets very well. We have reserves of 12.7 million against an anticipated loss of 4.7. I think we are really well reserved. As a matter of fact, if we were on the old ALLL, which I still call it from now and then, I have to stop using that, a historical analysis, we would not have a $12.7 million reserve. But there are many wiser people than I am, and we do, but I think we are very well protected. I hope that answers your NPA question. Yeah. No. That definitely does. I really appreciate all the information there. That was extremely helpful. Matthew Erdner: And then kind of changing gears here, I would like to talk about the credit card. Yeah. I completely understand all the things that you had mentioned kind of with the big you know, sports betting operators and them not being able to load on. You know, I guess, how are you guys feeling about that going forward? And then, you know, with the prepaid card do you feel like that is going to be able to pick up the incremental I guess, transactions that you lost due to these I guess, guys shutting down credit cards. Edward Nigro: Yeah. We are not totally shutting it down, but the but the we are we have seen it drop to about, you know, 2 or 300 thousand a day because of all of these large sports betting. And we know that and you know we happen to have a very we happen to have very good knowledge of how the sports betting works. And we know that the sports betting industry is hurting very badly from the cost of funding. The cost of funding is hurting them enormously. And we have heard some instances where the cost of funding is greater than their entire cost of all their personnel. So these kinds of things, we know and by the way, we believe we have a solution for them. it is called our pool player account, but I am not even gonna start to get into that. Just yet. Matthew Erdner: But right now, the credit card, yes. Edward Nigro: Here's the--let me let me give you the big I think what is at the high level vision of it We have proven the concept. We have done 622 million in transactions since we launched our credit card in 2024. We have proven the concept that players like to use the credit card. Because of the way they are able to use and pay it off and the way we have set up even secured accounts. Remember, we still have another 15 million on which got up to 25 million in deposits. From where we created secured accounts where we could move and have players move their money much quicker. And I do not wanna get into a great deal of detail on that because that is another 1 of our proprietary processes. When I say proprietary, I just our own business. But having said that, these customers are indeed waiting for our prepaid card. Because they like the way we work, and we can tie their prepaid card to these secured accounts as well for high limit players. We have an enormous following of high limit play that is very valuable in the gaming industry, And they like our card, and they like our bank, and they like the way we have treated them. This is as is going to be a good resource for the future growth as we launch our prepaid card. But most importantly, the credit card, if any of you go to a casino in or in New Jersey or Pennsylvania or Detroit or Nevada or anywhere that has the legal bricks and mortar casinos or the tribal casinos, the first thing that players do, they all need cash. You have to start the process with cash. So they go to an ATM machine, they go to a kiosk, or they go to the cage, and what do they do? They give them their credit card or a prepaid card, and they get cash. We know our credit card is going to play an important role in these verticals we are creating. With the bricks and mortar and distributed gaming operators. Especially as they go to cashless and to be able to load, we will be on their platforms. Ours will be a preferred loading on all the platforms that we support at g bank. Not just the deposits, but also the way to load the deposits as well. We want to be involved in the complete verticals. So I believe the credit card is going to see an important role in the future, and we are going to make sure we keep it But for right now, yes, We the big miss in our earnings is credit card. Because of the not because the card did not work, it worked really well. I mean, you saw the fact of our transactions even in my last call, I said the transactions that month were approaching 40 million. But then the rest of the sports shut down on us, or at least the big venues did. So now we are looking at, you know, as I said, a couple of 100 thousand a day, and we will have to hold for that for a while until we start to rebuild And I think that rebuild will really start hopefully, in the you know, first quarter of next year or maybe a little bit at the fourth quarter, but we are not gonna rush it But the point that we wanna make is that it is still a valuable product, and it is gonna be important in our bricks and mortar business. Matthew Erdner: Got it. that is helpful. And then just as a quick follow-up, you know, the interchange fees, I guess, were call it 2% ballpark, I know they kind of fluctuate quarter to quarter. How should we think about that from prepaid card standpoint? Is there going to be a fee attached to it based off of, you know, reloads or something like that? You know, I guess just what is the economic difference as the prepaid card increases as a percentage of use versus the credit card? Edward Nigro: 1 of the interesting things with the prepaid card is that this is gonna be a bank owned pre I mean, it is going to be issued by we are gonna develop and present the marketing plan to you very soon. We are in the final details of it, but there are some so fascinating aspects to it. I will give you just a little peek, but it is all I can do right at this point. Is it the prepaid card is going to develop deposits. But we are going to create the prepaid card and tie it to our pool player account. So these are going to be accounts at the bank, and they are going to be managed a little differently. And it is also going to be able to have the fact that since we control it, we can determine what interchange we charge and whether we even want to charge an interchange, or whether we want to have it move money very easily or very small amounts, and whether we want to create our own rewards. Because these are going to create another source of deposits for us, which are the loading aspect as well, which are the payment process as well. Not just the amount that sits on the slot machines, but the amount the transactions So we are looking at it becoming a key transactional vehicle for us and I will be able to give you more details. In the future, but please bear with me. We have some interesting ideas and thoughts, and we believe that it is going to be very important monetization of the bricks and mortar platforms we are developing. Got it. that is helpful. I appreciate the comments as always. And thank you, guys. Operator: Your next question will come from Timothy Coffey with Janney Montgomery Scott. Your line is open. Please go ahead. Timothy Coffey: Afternoon, gentlemen. Edward Nigro: Hello, Timothy. Timothy Coffey: So I have some questions about the core banking operations here. What I mean, how should we think about margin going forward? Good margin. Yeah. NIM. Yep. Edward Nigro: that is a I have just the man, Timothy, sitting to my right here. Timothy Coffey: Perfect. Analyst: Well, first, I think it is important to understand what happened, and then I will talk about the challenges going forward. So first off, NIM went from or net interest margin went from 3.86 to 3.78. Quarter over quarter. There were 2 drivers to that. 1 was the loan yield and then the special dividend from the Federal Home Loan Bank San Francisco FHLB. The majority was from the loan yield. Decreasing by 7 basis points. From 38 to 31. And that was solely because we wrote off $369 thousand of accrued interest related to loans transferred to non accrual And then the other aspect was the dividend rate went from 8.75 to 4.75, and that reduced our special dividend by 158 thousand. So those 2 areas really impacted the NIM. And had that not been the case, we would have actually been at 3.91. So the good news on that is we had a favorable decrease in cost of funds because of matured CDs that rolled off. And we were able to replace those at a lower cost. So that went down from 3.93 to 3.86. Edward Nigro: So there is really 2 areas of focus going forward. 1 is on the special assets area, the non accruals, That whole area is getting a lot of attention. I am gonna be right in the middle of that restructuring, and we have already done a lot of work in that area, as Edward mentioned. But, we are doubling down as we say in Vegas. We are we are doubling down our efforts. And restructuring meeting weekly with the special assets area, we have a really robust plan and I will be in the middle of that managing it. I have stepped into these many times. And it just takes attention. To manage and understand every single 1 of those credits what the backing is, what the collateral, and the borrower and early detection is key. On these. Working with the bar instead of against them. And not saying that we have, but, that is a key element The other aspect is on the deposit side or the funding side, We did not have a CFO for a short time here. We 12 weeks. Yeah. Yes. Here we yeah. 12 weeks. That has a bit of an impact. Analyst: So we have spun up our wholesale sources again. Looking at local markets for funding. I have some ideas in mind there. We were bringing in Darling Consulting We have a CFO consultant that is very experienced. he is working with me daily. Looking for opportunities to work on NIM. So his challenging environment on the funding side because, you know, you are replacing these things at 4% to 4.25% on quick rate and some of the other wholesale funding sources. So you know, going forward, we are still going to be challenged on that side, but I do not see it like a huge dip. it is going to be managed. If that helps you. Timothy Coffey: Yeah. Okay. So let's start on the earning, the net interest income side. Given the reviews that you are doing with loan portfolio, does that necessitate a slowdown in production? That is not I am sorry. I am so sorry. What I did not hear you. Yeah. Analyst: So, is it going to be a slowdown in our production? Then I will say no. No. We are going to manage through this and continue to keep the machine running. But we are really paying attention to geographic--yeah, where these kind of problem loans exist so that we can do the whole smarter in where we originate. And keeping hotels from being shut down. Or closed. So managing that process. Go ahead. Edward Nigro: I can add just a little color to that because 1 of the things, Timothy, we have originated last year $576 million in SBA loans. And already this year, for the first 6 months, we have originated $321 million. And we do not see it slowing down. As a matter of fact, we have said our pipeline is stronger than ever. And we also know that we have sold loans last year at $354 million, and we have already sold $190 million this year. In the first 6 months. And the important thing that production is not gonna slow down, as a matter of fact, we see it increasing over last year as we reported. I but and there is 1 thing about SBA that I wanna point out, and that I was gonna describe in my last answer on Joe Yakunich was on our nonperforming assets and especially on our provision, we had a $2.8 million provision, but I do not want you to go away with thinking that was our hotel portfolio. 1.1 million of it was our hotel portfolio. Was our SBA. Remember, 700 thousand was credit card, and that is going away. I mean, that is declining rapidly. A couple of $200 thousand of that was an over 120 days that we had to catch up on. That pretty much is going to be bringing that down significantly. And the other part was 900 thousand was into some loans in Las Vegas that we have. A matter of fact, with 1 particular customer who had been a customer for a long time, and he has food court operations in hotels. And we do not believe there is been a provision, but we have the great optimism that we are not going to lose that money, that we will be recovering it. So there were some unusual events during this and about $250 thousand of that reserve was on growth alone. So the 2.8 million had some unusual events in it, The credit card is--we do not believe it is going to repeat that level. The this 1 particular operation in Las Vegas, we really have confidence in this borrower. I know the borrower. he is--and I believe that and we have very great confidence in him But I wanted to point that out, and then I gave you a good demonstration, of what our nonperforming assets were going to do. But I just wanted to focus on that existing loan loss reserve that why it hit 2.8 million. Timothy Coffey: Yeah. Okay. I got that. As we are talking about since we are I will talk about the allowance. When we talk about the allowance kinda staying at these levels, are we talking about the allowance to the total portfolio? Or the allowance to the non-guaranteed portions Of the loan portfolio? Edward Nigro: When I talk about 60 million is that what you are referring to? Timothy Coffey: Yeah. The allowance. We talk during the prepared remarks, you talked about the allowance on the for the portfolio. The allowance being at these kind of current levels we talking about the allowance relative to the total loan portfolio? Or the loan portfolio excluding the government guarantees? Edward Nigro: Portfolio? Or Well, Timothy, we talked about them both in the release. We talked about we also have a number in there that says our total at risk is 23 million. Of the 60 million. But then I also demonstrated that is even before collateral consideration as well. Now if you if so that when we talk about our NPA levels, those are the include both the guaranteed and non guaranteed portion. it is they include whatever is on our balance sheet. Now we our reserve of 12.7 million is reserved against the guaranteed portion. it is not a reserve against the nonguaranteed portion. But I also try to demonstrate how we think that reserve is very strong compared to what our real losses have been. Did I answer your question? I am not because I am not sure I understood it, Timothy. Timothy Coffey: Well, I have got the allowance relative to the loans at risk. At about a 150 basis points. Which seems high to me. Right? So I would think that would come down. What I am trying to get confirmation is that accurate? Am I am I thinking about that correctly? Edward Nigro: I am trying to get clarification I mean, Timothy. Because you are coming in a little garbled for me, and I am not quite following it with none of us are. Timothy Coffey: We have several numbers in here. So which number? Give me the percentage you are referring to. Yeah. You know, I can follow-up offline. What about expenses? You have a lot of moving parts. You know? We are not replacing the chief operating but you also have some consultancy expenses. what is a good run rate for non-interest expenses? Edward Nigro: We you know, you saw our efficiency ratios to 54% because we are producing so much revenue. But the point is that, yes, we have we are changing, but some of the expenses have gone away. With the expenses of Jeffery Whicker, we are obligated to pay him for a year. Under the disability provisions of his contract. And I think that you have seen our noninterest expense line, which is and it is high. I mean, if you look at our report right now, we think we have got plenty in there. We do not--I would not say we are going to continue to grow it. As a matter of fact, we wanna see it decline some, but as Jeffery gets more into the noninterest expense and some of the things we are doing to identify our noninterest expense is to identify ex expense lines across the divisions of each 1 of our operations, and that is an important undertaking we are doing. But that is a discipline we will watch very carefully, Timothy. it is are we spending money to continue to develop our IT and to be ready for these big transactions to be a payments bank, to be a payments bank, a tech technically competent payments bank, as well as a lending institution as well as a sound and secure lending institution. So, yes, some of our noninterest expenses are going to be a bit elevated, but we do not see them growing disproportionately to what they are today. Timothy Coffey: Alright. Brett. Thank you. Those are my questions. Operator: Your next question will come from David Verlander, a private investor. Your line is open. Please go ahead. Analyst: Hey, guys. Thank you. Thank you, Edward, for explaining this press release and all. But my question is for Jeffery. Can you just try to walk us through This is not the typical bank, obviously, for you. And you know, it is a new challenge for you. But can you just explain to us like, maybe your thought process and what made you decide, you know what? Honey? We are gonna sell the house. We are gonna move the kids to Las Vegas. Because this is a challenge. This is a challenge I wanna accept. Can you just give us a little color there? Sure. I would love to. It was definitely a fork in the road I have been doing this for about 30 years. I have been in the CEO role for about 20. And been in the community banking space. You have seen my background where I come into small banks, grow them, and really bring value. And I have enjoyed that. That chapter of my life. But as the glacier opportunity came about, I had an opportunity to really reassess where I wanted to go in my next chapter. And I wanted to do something different. I wanted to do something that had a big impact and contribution And I had a I had a lot of opportunities to look at and a lot of them were in the community banking space. I even looked outside of banking for a minute. And then I met Edward, and Todd, and Nicholas Nigro and came across this opportunity. And it really struck me. It excited me. And I thought this is an opportunity to change an industry. it is a an opportunity to make a huge impact They have already done so much. But I could bring my skill set to the banking side and to really learn the payment side And I already have learned a lot And I love what we are doing, and that thankfully, was supported by my family and my wife And yeah, we moved the whole family. We got a house and everybody will be moved on August 2. We will have the whole family down here. Very good. And you know what is been really fun too is I have to say that I thought Edward was going to be great to work with. And it was double my expectations. We are aligned in how we think about things, transparency, honesty, We both are very committed to doing this right. And doing it well. And we are we are kind of joined at the hip as we say. Edward Nigro: Yeah. And he is got a big hip. he is a much bigger hip than me. that is good. Okay. Thank you. it is our humor. it is all good. Thank you. Well, thank you. Operator: This completes the allotted time for questions. Edward Nigro: On that, then I would like to thank everyone very much for joining us all of our investors, our shareholders, our staff members, on behalf of our board of directors, and our management team, I want to wish you very well, and we are very excited. We are very excited about our future, and we are going to remain committed to delivering a sustainable long term growth and value for all. Thank you. Operator: Thank you for joining the G Bank Financial Holdings and Q2 26 earnings call. You may now disconnect. Before you buy stock in GBank Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GBank Financial wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. GBank Financial Holdings (GBFH) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Appointed Jeffery Newgaard as President and CEO to lead the bank's transition toward a technically competent payments institution while maintaining community banking roots. Achieved significant growth in SBA gain on sale income, rising to $9.3 million from $5.1 million year-over-year, driven by strategic alignment with minimum gain objectives and improved loan spreads. Attributed the increase in non-performing assets (NPAs) to a maturing $2.4 billion loan portfolio and a collateral-based reporting model that requires repurchasing guaranteed portions of non-performing SBA loans. Experienced a decline in credit card interchange income due to major sports betting operators restricting credit card usage, leading to a transaction volume contraction expected to persist until late Q4. Streamlined the leadership structure by eliminating the COO position to allow the new CEO to remain closer to daily operations and organizational efficiency. Engaged external consultants to conduct a comprehensive technology and cybersecurity review, confirming a secure posture while identifying opportunities for improved reporting and infrastructure resiliency. Realigned the special assets group under the Chief Credit Officer to intensify collection efforts and accelerate the disposition of troubled assets, particularly within the hotel portfolio. Anticipates the commercial launch of a new Visa prepaid card in Q4, which will be directly integrated with gBank's pool player accounts to provide unique payment functionality. Expects the strategic partnership with Axis to scale rapidly, serving as the white-labeled payments infrastructure for an enterprise digital wallet across a network of 67 gaming operators. Projects that the allowance for credit losses will remain at current levels in the near term due to strong SBA production and continued portfolio growth. Targets 2027 as the primary year for significant gaming deposit growth as digital platform integrations with partners like Terrible's Gaming and Axis reach scale. Focuses on optimizing net interest margin by transitioning from high-cost certificates of deposit to lower-cost money market accounts and strategic FHLB advances. Provision expense increased by $2.8 million, reflecting higher reserve requirements for elevated NPAs and a $771 thousand addition related to retail credit card delinquencies. Net interest margin compressed to 3.78%, impacted by a 7 basis point decline in loan yields and a reduction in the FHLB San Francisco special dividend rate. Reported a $369 thousand write-off of accrued interest related to loans transferred to non-accrual status during the quarter. Management noted that the CFO, currently on medical leave, will not return, prompting a search for a permanent replacement while utilizing a consultant for continuity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that the partnership provides a scalable infrastructure layer where gBank earns fees and captures deposits from patron wallets across 67 operators. The first operator integration involves over 3,000 slot machines, with monetization expected to ramp as technical integrations are completed across various state jurisdictions. Management confirmed that production will not slow down, citing a pipeline stronger than the previous year and $321 million in originations for the first half of 2026. Stated that while NPAs appear elevated at 4%, the actual economic loss exposure is mitigated by 75-90% SBA guarantees and a robust collateral liquidation process. The IT review confirmed the bank is secure on cybersecurity but recommended improvements in reporting and infrastructure to handle high-volume payment transactions. Management shifted away from expensive internal AI development in favor of acquiring faster, more cost-effective external technology solutions to support the fintech roadmap. Management acknowledged the 'big miss' in earnings due to sports betting restrictions but emphasized the card remains a vital tool for cash-reliant bricks-and-mortar casino patrons. The credit card will eventually serve as a preferred loading mechanism for the bank's upcoming digital and prepaid platforms.

Interested in GBank Financial Holdings Inc.? Here are five stocks we like better. SBA lending remained strong, with $131.4 million originated in the second quarter and gain-on-sale income rising year over year, but net interest margin narrowed to 3.78% as funding costs stayed elevated. Credit quality is under pressure: non-performing assets reached approximately $60 million, prompting higher provisions and continued investment in the special-assets team, particularly for the maturing hotel portfolio. Gaming businesses face near-term challenges but longer-term growth plans remain intact. Gaming-card volume fell after sports-betting operators restricted credit-card use, while GBank advanced its Visa prepaid card, BVNKROLL-Axes.ai partnership and BoltBetz rollout. GBank Financial (NASDAQ:GBFH) outlined leadership changes, continued SBA lending growth, pressure on credit quality and gaming-card revenue, and progress in its gaming fintech strategy during its second-quarter 2026 earnings call. Jeff Newgard, the company’s new President and CEO of GBank, said his initial assessment found “a successful bank with a bright future,” citing a collaborative culture, the strength of the SBA lending team and the bank’s compliance framework. Newgard said the company accepted the retirement of its chief operating officer and promoted its operations manager to director of operations. The COO role will not be filled at this time. → This Tiny AI Supplier Could Be More Important Than the Chipmakers The bank also engaged an IT consultant to review its technology operations and cybersecurity risk profile. Newgard said the assessment had been completed and that management was implementing recommendations intended to improve infrastructure, operational resilience and cybersecurity. He added that the company hired an experienced CFO consultant after its CFO, who had been on medical leave, informed the bank that he would not return. The company is searching for a permanent replacement. Newgard said GBank originated $131.4 million of SBA loans during the second quarter, retaining $61.3 million on its balance sheet at an average yield of 8.01%. The conventional loan portfolio increased by $855,000, with $324,000 retained at an average yield of 8.53%. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? The company said its approach to aligning SBA originations with minimum gain-on-sale targets improved spreads to prime and market pricing on sold loans. Gain-on-sale income increased to $9.3 million in the first six months of 2026, from $5.1 million in the corresponding 2025 period. However, the bank said provision expense rose to $2.8 million in the second quarter from $2.3 million in the first quarter, primarily because of higher reserve requirements associated with non-performing assets. Net interest margin declined to 3.78%, reflecting a seven-basis-point decrease in loan portfolio yields and continued elevated funding costs. → Innovative ETF Strategies That Are Paying Off This Summer Despite margin pressure, average loan balances rose by about $60 million from the first quarter, contributing to a $1.1 million increase in loan interest income. Newgard said the bank is shifting maturing higher-cost certificates of deposit toward lower-cost funding sources, including money market accounts and, where appropriate, Federal Home Loan Bank advances. Management has also engaged Darling Consulting Group and the CFO consultant to develop strategies intended to improve net interest margin while maintaining liquidity, capital and interest-rate risk discipline. Newgard said GBank operates as a collateral-based SBA 7 lender, a structure that can make reported non-performing asset levels appear higher than the bank’s economic risk. When an SBA loan becomes non-performing, the bank repurchases the guaranteed portion and reports the entire loan balance as a non-performing asset, he said. Ed Nigro, executive chairman and CEO, said the company had approximately $60 million in non-performing assets and managed roughly $2.3 billion to $2.4 billion in loans, including loans held off balance sheet. He said the bank’s special assets group historically has recovered about 70% through collateral liquidation in his illustrative example, while the SBA generally guarantees 75% of losses on qualifying loans. Nigro said the bank had $12.7 million in reserves against what he described as roughly $4.5 million to $4.7 million of anticipated loss exposure in the example discussed on the call. He also said the special assets team expected to resolve or move through $20 million to $30 million of the current special-assets portfolio by the end of September. The company said it is addressing elevated problem assets, particularly in its maturing hotel portfolio. Management has developed proprietary analytics focused on geography, borrower capitalization and management performance, while realigning the special assets group under the chief credit officer and increasing staffing. GBank said it expects allowance levels may remain near current levels in the near term as loan production and the SBA portfolio continue to grow. Nigro said GBank’s gaming credit-card business was hurt during the second quarter after major sports-betting operators eliminated or restricted credit-card use. Gaming credit-card transaction volume declined to $84.2 million in the quarter, and the company expects further contraction until late in the fourth quarter. Higher delinquencies among retail-only cardholders also added approximately $771,000 to second-quarter loan-loss provisions. Nigro said the company does not market to retail users and is reducing that segment, with the expectation that related delinquencies will decline. He said fraud was not a significant issue. Management nevertheless said it remains optimistic about the cards’ longer-term role in casino and gaming payments. A Visa prepaid card is in testing, with a commercial launch expected in the fourth quarter. The prepaid product is expected to be directly integrated with GBank’s Pooled Player Account infrastructure. Nigro said the bank currently averages between $35 million and $50 million in daily gaming-related deposits. He said gaming deposits are not expected to grow significantly this year, though management expects some lift in the fourth quarter. He described 2027 as a more significant year for the strategy as the company gains more experience converting gaming activity from cash to digital payments. Todd Nigro, vice chairman, highlighted a July 21 agreement between BVNKROLL and AXES.ai. Under the agreement, BVNKROLL will provide white-labeled payments infrastructure for an AXES-branded enterprise digital wallet across AXES’ operator network. AXES serves 67 gaming operators and distributors in 12 states, according to the company. Todd Nigro said AXES is working on its first operator integration, while noting that each operator deployment requires separate implementation work despite use of AXES’ casino management system. He said BVNKROLL’s model is intended to allow enterprise partners to own their brands, operator relationships and marketing efforts while GBank provides underlying infrastructure and receives deposits from patron wallet accounts. Separately, Terrible’s Gaming received Nevada Gaming Control Board approval to deploy the BoltBetz platform. The companies are in technical integration, with an initial rollout at select grocery stores targeted for later this year. Todd Nigro also said the Distill Taverns deployment saw a fourfold increase in sign-ups following improvements in the platform’s second version. “We continue to operate from a position of strength,” Ed Nigro said in closing, citing the company’s capital base, differentiated business model and focus on execution and innovation. GBank Financial Holdings Inc operates as a bank holding company for GBank which provides banking services to commercial and consumer customers principally in Nevada. The company offers business and personal checking and savings accounts. GBank Financial Holdings Inc is based in Las Vegas, Nevada. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "GBank Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

GBank Financial Holdings Inc. (GBFH) came out with quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.5 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -24.00%. A quarter ago, it was expected that this company would post earnings of $0.5 per share when it actually produced earnings of $0.31, delivering a surprise of -38%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. GBank Financial Holdings Inc., which belongs to the Zacks Banks - Southwest industry, posted revenues of $21.95 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.13%. This compares to year-ago revenues of $17.77 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. GBank Financial Holdings Inc. shares have lost about 10.5% since the beginning of the year versus the S&P 500's gain of 8.5%. While GBank Financial Holdings Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for GBank Financial Holdings Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.59 on $24.55 million in revenues for the coming quarter and $2.03 on $92.55 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southwest is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Finance sector, Palmer Square Capital BDC Inc. (PSBD), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -18.6%. The consensus EPS estimate for the quarter has been revised 5.3% lower over the last 30 days to the current level. Palmer Square Capital BDC Inc.'s revenues are expected to be $26.13 million, down 17.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GBank Financial Holdings Inc. (GBFH) : Free Stock Analysis Report Palmer Square Capital BDC Inc. (PSBD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LAS VEGAS, July 29, 2026 (GLOBE NEWSWIRE) -- GBank Financial Holdings Inc. (the “Company”) (NASDAQ: GBFH), the parent company of GBank (the “Bank”), today reported net income of $5.5 million, or $0.38 per diluted share, for the quarter ended June 30, 2026, compared to $1.3 million, or $0.09 per diluted share during the first quarter of 2026, and $4.8 million, or $0.33 per diluted share, for the second quarter of 2025. For the six months ended June 30, 2026, net income was $6.8 million, or $0.47 per diluted share, compared to $9.2 million, or $0.65 per diluted share, for the comparable six-month period of 2025. Excluding the impact of credit card fraud losses recorded during the first quarter of 2026, adjusted net income(1) for the six months ended June 30, 2026 was $10.1 million, or $0.69 adjusted diluted earnings per share(1). Second Quarter 2026 Comments (Unaudited) Net revenue(1) of $22.0 million, a record quarter for the Company, and an 11.7% increase compared to the first quarter of 2026 Pre-provision net revenue(1) of $10.0 million, up $6.2 million from $3.8 million for the first quarter of 2026 Total assets under management, including $1.2 billion of sold loans for which servicing is retained, were $2.6 billion as of June 30, 2026 Net Interest Margin declined to 3.78% from 3.86% in the quarter ended March 31, 2026. A decline in yield on Loans and Loans Held For Sale (“Loans”) to 7.31% from 7.38% was the primary driver of this decline, however average balances of Loans increased $60.5 million in the quarter resulting in an increase in interest income on Loans of $1.1 million over the previous quarter. Gain on loan sales of $5.5 million on loans sold of $110.1 million, compared to gain on loan sales of $3.8 million on loans sold of $79.0 million for the first quarter of 2026 Gain on loan sales margin(1) of 5.04% compared to 4.79% for the first quarter of 2026 U.S. Small Business Administration (“SBA”) lending and commercial banking loan originations of $132.3 million, compared to $208.1 million for the first quarter of 2026 Non-performing assets, excluding guaranteed portions(1), of $23.3 million as of June 30, 2026, representing 1.63% of total assets compared to $13.2 million as of March 31, 2026, representing 0.70% of total assets Comments from Ed Nigro, Executive Chairman and CEO “First, I want to welcome GBank President/CEO and Director, Jeff Newgard. Since June 8th, we have hit the ground running and he has my utmost respect and admiration – he is a valued addition and I’m confident we are going to achieve great things together.” “Also, despite several near-term challenges during the quarter, the core bank remains fundamentally strong with substantive growth. We generated record revenues, maintained strong loan production, and continue to originate high-quality assets at attractive yields. While elevated nonperforming assets, retail credit card delinquencies, and net interest margin pressure impacted quarterly results, we have taken decisive actions to strengthen credit administration, optimize our balance sheet, and position the Bank for improved financial performance going forward,” continued Mr. Nigro. “Most importantly, the recently announced BVNKROLL/AXES agreement is a significant accomplishment and requires additional comment.  First, within 90 days of announcing the formation of the BVNKROLL – a joint venture equally owned by BoltBetz and our affiliate BCS, owned 32.99% by GBFH, we have our first signed client contract.  Second, AXES is a cloud-based all-digital casino management platform.  By incorporating our complete payment solution into the AXES intelligent management system (IMS), AXES will be giving their operating customers something no legacy CMS has ever offered:  a single, real-time payments process that spans the gaming floor, the digital wallet, and the financial transaction, all in one platform.This agreement validates the BVNKROLL business strategy and is the first step towards imbedding GBank into the cashless payments operations of the bricks and mortar casino industry. AXES currently serves sixty-seven gaming operators and distributors across twelve states, has a global footprint spanning over thirty countries and millions of customers.  GBank, BCS and BVNKROLL could not be more enthusiastic about this agreement,” concluded Mr. Nigro. Financial Results Income Statement Net interest income totaled $12.8 million for the second quarter of 2026, reflecting an increase of $610 thousand, or 5.0%, compared to $12.2 million for the first quarter of 2026, and an increase of $413 thousand, or 3.3%, compared to the second quarter of 2025. The increase in net interest income when compared to both the first quarter of 2026 and the same quarter of 2025 was primarily volume driven, as higher interest income from growth in average loan, interest-bearing cash balances, and investments more than offset increases in interest expense resulting from higher average balances of interest-bearing deposits. The yield on investment securities was 4.64% for the second quarter of 2026, compared to 4.39% for the first quarter of 2026 and 4.73% for the second quarter of 2025. The increase in investment yield when compared to the prior quarter was the result of the full-quarter impact of $51.6 million of available for sale mortgage-backed securities purchased during the first quarter of 2026, as well as $7.9 million of available for sale mortgage-backed securities purchased during the second quarter of 2026. The change when compared to the previous year was the result of changing investment mix over the previous twelve month period designed to address asset-liability management objectives. The Company’s net interest margin for the second quarter of 2026 was 3.78%, compared to 3.86% for the first quarter of 2026 and 4.31% for the second quarter of 2025. The decrease in net interest margin during the second quarter of 2026 when compared to the previous quarter was the result of both (i) a decline in the yield on loans to 7.31% from 7.38%, and (ii) the first quarter of 2026 reflecting a one-time special dividend on restricted stock held at the Federal Home Loan Bank of San Francisco ("FHLB") of $158 thousand while simultaneously lowering future dividend rates from 8.75% to 4.75%. The year-over-year decline in quarterly net interest margin reflects the impact of a cumulative 75 basis point reduction in the target federal funds rate on the Company’s variable-rate loan portfolio over the preceding twelve months. The Company recorded a provision for credit losses on loans of $2.8 million for the second quarter of 2026, compared to $2.3 million of provision expense recorded during the first quarter of 2026, and $1.1 million of provision expense recorded during the second quarter of 2025. Please refer to information under the heading "Asset Quality" for more information regarding the provision for credit losses. Non-interest income was $9.1 million for the second quarter of 2026, compared to $7.5 million for the first quarter of 2026, and $5.4 million for the second quarter of 2025. The increase of $1.6 million when compared to the first quarter of 2026 was primarily due to increases in net gains on sale of loans of $1.7 million. The $3.8 million increase in non-interest income during the second quarter of 2026 when compared to the second quarter of 2025 was primarily due to an increase in net gains on sales of loans of $3.0 million as well as increases of $498 thousand in loan servicing income and $288 thousand in net interchange fees. Net revenue(1) totaled $22.0 million for the second quarter of 2026, representing an increase of $2.3 million, or 11.7%, compared to $19.6 million for the first quarter of 2026. Net revenue for the second quarter of 2026 increased $4.2 million, or 23.5%, when compared to $17.8 million for the second quarter of 2025. Non-interest expense was $12.0 million during the second quarter of 2026, compared to $15.9 million for the first quarter of 2026 and $10.4 million for the second quarter of 2025. The quarter-over-quarter decrease in non-interest expense was principally due to $4.2 million of third-party credit card fraud expense recorded during the first quarter of 2026. The Company’s efficiency ratio was 54.7% for the second quarter of 2026, compared to 80.8% for the first quarter of 2026 and 58.5% for the second quarter of 2025. The higher efficiency ratio for the first quarter of 2026 was due primarily to the $4.2 million of third-party credit card fraud expense recorded as a component of non-interest expense. Income tax expense was $1.6 million for the quarter ended June 30, 2026, compared to $139 thousand for the first quarter of 2026, and $1.5 million for the second quarter of 2025. The Company’s effective tax rate was 22.9% for the quarter ended June 30, 2026, compared to 9.4% for the quarter ended March 31, 2026, and 23.2% for the quarter ended June 30, 2025. Fluctuations in the effective tax rate are primarily driven by the timing and magnitude of certain stock-based compensation transactions that generate tax benefits for the Company, as well as changes in pre-tax earnings. Net income was $5.5 million for the second quarter of 2026, an increase of $4.1 million from $1.3 million for the first quarter of 2026, and an increase of $707 thousand from $4.8 million during the second quarter of 2025. Diluted earnings per share were $0.38 for the second quarter of 2026, compared to $0.09 for the first quarter of 2026 and $0.33 for the second quarter of 2025. (1) See Reconciliation of Non-GAAP Financial Measures Balance Sheet Total assets were $1.4 billion as of both June 30, 2026 and March 31, 2026, an increase of 16.2% from $1.2 billion as of June 30, 2025. The increase in total assets from June 30, 2025 was primarily driven by increases in loans and other assets. Total assets under management, including $1.2 billion of sold loans for which servicing is retained, totaled $2.6 billion as of June 30, 2026. The investment securities portfolio increased by $3.7 million during the second quarter of 2026 primarily due to the purchase of two available for sale investment securities totaling $8.0 million. This increase was partially offset by principal paydowns. Total loans, net of deferred fees and costs, were $1.0 billion as of June 30, 2026 and March 31, 2026, and $871.6 million as of June 30, 2025. Loans, net of deferred fees and costs increased $22.2 million during the second quarter of 2026 primarily due to an increase of $22.3 million in commercial real estate loans. The increase in loans, net of deferred fees and costs, of $175.7 million from June 30, 2025, was driven by an increases of $159.3 million in commercial real estate loans and $21.7 million in commercial and industrial loans. Total government guaranteed loans as a percentage of total loans(1) were 16.7% as of June 30, 2026, compared to 17.3% as of March 31, 2026, and 22.1% as of June 30, 2025. The Company’s allowance for credit losses totaled $12.4 million as of June 30, 2026, compared to $10.8 million as of March 31, 2026, and $9.2 million as of June 30, 2025. Please refer to information under the heading "Asset Quality" for more information regarding the allowance for credit losses. Deposits totaled $1.2 billion as of June 30, 2026 and March 31, 2026, an increase of $173.3 million from $1.0 billion as of June 30, 2025. The increase of $34.8 million from the prior quarter was driven by increases in non-interest bearing demand and savings and money market balances of $18.4 million and $71.6 million, respectively, due primarily to the expansion of existing customer relationships. These increases were partially offset by decreases of $13.2 million in interest bearing demand and $42.1 million in certificates of deposits. The increase compared to June 30, 2025 was driven by growth across all categories of deposits. The Company’s ratio of loans to deposits was 86.9% as of June 30, 2026, compared to 87.5% as of March 31, 2026, and 84.4% as of June 30, 2025. The Company had no short-term borrowings as of June 30, 2026, March 31, 2026, and June 30, 2025. As of June 30, 2026, the Company had approximately $457.5 million in available borrowing capacity from the Federal Reserve Bank of San Francisco, the Federal Home Loan Bank of San Francisco, and through its various fed funds lines of credit with its correspondent banks. Subordinated notes outstanding totaled $30.3 million as of June 30, 2026 and March 31, 2026 and $26.1 million as of June 30, 2025. The year-over-year increase reflects the issuance of $11.0 million of subordinated debt issued in January 2026 maturing on January 15, 2036. This increase was partially offset by the redemption of $6.5 million of subordinated debt originally issued in 2020. Stockholders’ equity was $172.8 million as of June 30, 2026, compared to $167.6 million as of March 31, 2026, and $151.7 million as of June 30, 2025. The increase in stockholders’ equity when compared to both the prior quarter and the prior year is attributable to increases in retained earnings resulting from net income earned during each respective period. The Company’s ratio of common equity to total assets was 12.07% as of June 30, 2026 compared to 12.03% as of March 31, 2026 and 12.30% as of June 30, 2025. The Bank’s Tier 1 leverage ratio was 13.2% as of June 30, 2026 and March 31, 2026, and 13.8% as of June 30, 2025. The Company’s book value per share was $11.94 as of June 30, 2026, an increase of 3.1% from $11.58 as of March 31, 2026, and an increase of 12.3% from $10.63 as of June 30, 2025. Asset Quality The Company recorded a provision for credit loss expense for loans of $2.8 million for the second quarter of 2026, compared to $2.3 million recorded during the first quarter of 2026 and $1.1 million of provision expense recorded during the second quarter of 2025. The provision for credit losses for loans during the second quarter of 2026 reflects (i) $1.2 million of charge offs recorded during the second quarter of 2026 for certain commercial real estate - owner occupied, commercial real estate - non-owner occupied, and commercial and industrial loans, (ii) an increase of $919 thousand related to specific reserves on individually evaluated commercial real estate - owner occupied, commercial real estate - non-owner occupied, and commercial and industrial loans, and (iii) an increase in reserve for credit cards of $771 thousand due to elevated delinquency levels of the non-gaming credit card holders. (1) See Reconciliation of Non-GAAP Financial Measures The Company’s allowance for credit losses totaled $12.4 million as of June 30, 2026, compared to $10.8 million as of March 31, 2026, and $9.2 million as of June 30, 2025. The allowance for credit losses as a percentage of total loans was 1.19% as of June 30, 2026, compared to 1.05% as of March 31, 2026 and 1.06% as of June 30, 2025. The allowance for credit losses as a percentage of total loans, excluding government guaranteed portions(1), was 1.42% as of June 30, 2026, compared to 1.27% as of March 31, 2026, and 1.36% as of June 30, 2025. The increase in this ratio was largely driven by an increase in specific reserves assigned to collateral-dependent non-performing loans. Net loan charge offs in the second quarter of 2026 totaled $1.2 million, or 0.42% of average net loans (annualized), compared to net loan charge offs of $1.5 million, or 0.57% of average net loans (annualized) in the first quarter of 2026 and $870 thousand of net loan charge offs, or 0.38% of average net loans (annualized) during the second quarter of 2025. The balance of other real estate owned increased to $5.7 million as of June 30, 2026 compared to $4.4 million as of March 31, 2026. The Company had no other real estate owned as of June 30, 2025. The increase in other real estate owned during the second quarter of 2026 was attributable to the completion of foreclosure proceedings on two commercial real estate - non-owner occupied properties totaling $2.0 million. This increase was partially offset by the sale of one commercial real estate - non-owner occupied property during the second quarter of 2026 totaling $765 thousand. Non-performing assets totaled $60.2 million as of June 30, 2026, an increase of $16.0 million from $44.1 million as of March 31, 2026, and an increase of $41.8 million from $18.4 million as of June 30, 2025. The increase was driven by $14.7 million of commercial real estate and commercial and industrial loans transferred to nonaccrual status during the quarter. These loans are primarily collateralized by hotel/motel properties, business assets, and single-family residential properties. Contributing to the increase was the addition of $4.3 million of loans ninety days past due and accruing, comprised of certain commercial real estate, commercial and industrial, and consumer loans. Our non-performing assets to total assets ratio was 4.20% as of June 30, 2026, compared to 3.17% as of March 31, 2026, and 1.49% as of June 30, 2025. At June 30, 2026, this ratio includes government guaranteed balances of $36.9 million in the balance of non-performing assets (numerator). Excluding the government guaranteed portion of non-performing assets(1), total at-risk non-performing assets were $23.3 million as of June 30, 2026 and the ratio of non-performing assets excluding the government guaranteed portion(1) reflects 1.63% of total assets. The Company continuously monitors its non-performing asset portfolio and believes the financial risk related to these assets is well contained. In making this assessment, it is important to consider the process we undertake when a collateralized SBA non-performing asset requires collection efforts. Historically, we have repurchased the sold portion of the government guaranteed loan to complete the foreclosure and resale of the property. This process immediately increases the non-performing asset balance on our balance sheet to include the government guaranteed portion – thus the importance of always adjusting for the government guaranteed portion of the non-performing assets as well as considering our “off balance sheet” assets consisting of the sold portion of USDA and SBA guaranteed loans of $1.2 billion that increase our total assets under management to $2.6 billion. During the second quarter of 2026, we began transitioning to a process whereby the USDA or SBA will repurchase the sold portion of the non-performing loan. Other Financial and Operational Highlights SBA Lending and Commercial Banking SBA lending and commercial loan originations totaled $132.3 million during the second quarter of 2026, compared to $208.1 million for the first quarter of 2026 and $160.7 million for the second quarter of 2025. We continue to see improvement in our pretax gain on sale of loans margin as the average pretax gain on sale of loans margin was 5.04% for the second quarter of 2026, compared to 4.79% for the first quarter of 2026, and 3.16% for the second quarter of 2025. This improvement in pricing quarter-over-quarter, along with the volume increase of $31.0 million in loan sales, resulted in a 46.3% increase in gain on sale of loans when compared to the first quarter of 2026. (1) See Reconciliation of Non-GAAP Financial Measures Gaming and Financial Technology Operations Our Gaming and Financial Technology businesses continue their transition from development to commercialization and scale. During the quarter, Bankroll LLC ("BVNKROLL"), our partner through our equity investment in BankCard Services, LLC ("BCS"), entered into an agreement with AXES AI that expands the availability of our slot and gaming payments platform to sixty-seven operators across twelve states. In addition, AXES' Intelligent Management System ("AXES IMS") platform may provide future growth opportunities for the expansion of our payments and account infrastructure. Credit Card Gaming-related credit card transaction volume declined to $84.2 million during the second quarter following the decision by certain major sports betting operators and their affiliates to discontinue credit cards as a funding source. While the number of active cardholders remained relatively stable, transaction activity among higher-limit sports and iGaming customers moderated during the quarter. Based on current activity levels, we anticipate quarterly transaction volume with these operators to stabilize in the range of approximately $45 million to $50 million. We believe the introduction of our Visa Prepaid Card program may provide an alternative funding source for our customers. During the quarter, we recorded an additional provision for credit losses of approximately $771,000 related to retail credit card delinquencies. These accounts were primarily generated through a direct-mail marketing campaign that was discontinued last year. We do not currently market to retail credit card customers, and the size of this portfolio continues to decline. We expect the combination of a shrinking portfolio and enhanced collection procedures to contribute to improved credit performance over time. Despite the recent decline in sports betting-related transaction volume, we continue to believe there is a significant opportunity for gaming-focused credit products within traditional casino and distributed gaming markets. We intend to integrate both our credit and prepaid card products as funding sources within BVNKROLL and BoltBetz-supported wallet platforms, which we believe may provide additional opportunities for transaction, deposit, and fee-based revenue. Visa Prepaid Card Our Visa Prepaid Card program is currently in testing, with commercial launch expected during the fourth quarter of 2026. The card will be integrated with GBank's PPA infrastructure, providing account functionality and connectivity within our gaming payments ecosystem. The card will also be integrated into BVNKROLL-supported wallet platforms, enabling customers to move funds between participating gaming operators and affiliated payment channels. We believe this product will enhance our gaming payments offering and provide additional opportunities for transaction, deposit, and fee income growth. BVNKROLL During the first quarter, we announced the formation of the BVNKROLL/BCS joint venture. During the second quarter, BVNKROLL further expanded its potential market reach through its agreement with AXES AI. The AXES relationship reflects the distinction between our BoltBetz and BVNKROLL platforms. BoltBetz operates as a direct-to-operator platform through which we manage operator relationships and the patron experience. BVNKROLL functions as an infrastructure platform that enables enterprise partners to utilize our technology and banking infrastructure while maintaining ownership of operator relationships, branding, marketing, and business development activities. As additional operators are added through the AXES platform, new patron PPA accounts may be established with GBank without requiring corresponding incremental direct marketing expenditures by the Company. BoltBetz During the second quarter of 2026, Terrible's Gaming received approval from the Nevada Gaming Control Board to deploy the BoltBetz platform with GBank holding player funds. The approval was received approximately 60 days after application submission which is reflective of the prior approved BoltBetz/GBank process. The BoltBetz deployment at Distill Taverns continues to provide meaningful data regarding patron adoption and usage patterns. Following the implementation of Version 2 platform enhancements, customer registrations increased approximately fourfold. Initial operating results indicate limited customer resistance to identity verification requirements necessary for regulatory compliance. Current efforts are focused on increasing customer registrations, visit frequency, and patron engagement as deployment continues to expand. Earnings Call The Company will host its second quarter 2026 earnings call on Wednesday, July 29, 2026 at 2:00 p.m. PST. Interested parties can participate remotely via Internet connectivity. There will be no physical location for attendance. Interested parties may register for the event using this link: https://gbank-financial-earnings-q226.open-exchange.net/registration About GBank Financial Holdings Inc. GBank Financial Holdings Inc. is a bank holding company headquartered in Las Vegas, Nevada and is listed on the Nasdaq Capital Market under the symbol “GBFH.” Through our wholly owned bank subsidiary, GBank, we operate two full-service commercial branches in Las Vegas, Nevada to provide a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and affluent individuals in Nevada, California, Utah, and Arizona.  Please visit www.gbankfinancialholdings.com for more information. Non-GAAP Financial Measures Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance.  These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows.  Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release. Available Information The Company routinely posts important information for investors on its web site (under www.gbankfinancialholdings.com and, more specifically, under the News & Media tab at www.gbankfinancialholdings.com/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”).  Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect the Company’s current views with respect to future events and the Company’s financial performance. Any statements about the Company’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases, and include, but are not limited to, statements made by Mr. Nigro.  The Company cautions that the forward-looking statements in this press release are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Factors that could cause such changes include, but are not limited to, (i) the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; (ii) potential recession in the United States and our market areas; (iii) the impacts related to or resulting from uncertainty in the banking industry as a whole; (iv) increased competition for deposits in our market areas and related changes in deposit customer behavior; (v) the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; (vi) the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; (vii) the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; (viii) changes in unemployment rates in the United States and our market areas; (ix) adverse changes in customer spending and savings habits; (x) declines in commercial real estate values and prices; (xi) a deterioration of the credit rating for U.S. long-term sovereign debt or uncertainty regarding United States fiscal debt, deficit and budget matters; (xii) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; (xiii) severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of the policies of the current U.S. presidential administration or Congress; (xiv) the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; (xv) competition and market expansion opportunities; (xvi) changes in non-interest expenditures or in the anticipated benefits of such expenditures; (xvii) the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; (xviii) current or future litigation, regulatory examinations or other legal and/or regulatory actions; and (xix) changes in applicable laws and regulations.  Additional information regarding these risks and uncertainties to which the Company’s business and future financial performance are subject is contained in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2025 and other documents the Company files with the SEC from time to time.  Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which the Company is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results.  Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. For Further Information, Contact: GBank Financial Holdings Inc.Edward M. NigroExecutive Chairman and [email protected]

LAS VEGAS, July 20, 2026 (GLOBE NEWSWIRE) -- GBank Financial Holdings Inc. (the "Company") (Nasdaq: GBFH), the parent company for GBank (the "Bank"), today announced it plans to release its second quarter 2026 financial results on Wednesday, July 29, 2026 at approximately 1:15 p.m. PST, and will host its quarterly earnings call on Wednesday, July 29, 2026, at 2:00 p.m. PST. Interested parties can participate remotely via Internet connectivity. There will be no physical location for attendance. Interested parties may register for the event using this link:https://gbank-financial-earnings-q226.open-exchange.net/registration About GBank Financial Holdings Inc. GBank Financial Holdings Inc. is a bank holding company headquartered in Las Vegas, Nevada and is listed on the Nasdaq Capital Market under the symbol “GBFH.” Our national payment and Gaming FinTech business lines serve gaming clients across the U.S. and feature the GBank Visa Signature® Card—a tailored product for the gaming and sports entertainment markets. The Bank is also a top national SBA lender, now operating across 40 states. Through our wholly owned bank subsidiary, GBank, we operate two full-service commercial branches in Las Vegas, Nevada to provide a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and affluent individuals in Nevada, California, Utah, and Arizona. Please visit www.gbankfinancialholdings.com for more information. Available Information The Company routinely posts important information for investors on its web site (under www.gbankfinancialholdings.com and, more specifically, under the News & Media tab at www.gbankfinancialholdings.com/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document. For Further Information, Contact: GBank Financial Holdings Inc.Edward M. NigroChairman and [email protected] Source: GBank Financial Holdings Inc.

LAS VEGAS, April 29, 2026 (GLOBE NEWSWIRE) -- GBank Financial Holdings Inc. (the “Company”) (NASDAQ: GBFH), the parent company of GBank (the “Bank”), today reported net income of $1.3 million, or $0.09 per diluted share, for the quarter ended March 31, 2026. The results for the first quarter of 2026 included an unusual item with a net impact of $3.2 million after-tax, or $0.22 per diluted share, due to losses associated with credit card fraud. Adjusted net income(1) for the quarter ended March 31, 2026 was $4.7 million, or $0.31 adjusted diluted earnings per share(1). First Quarter 2026 Summary Comments (Unaudited) Net revenue(1) of $19.6 million, a 5.2% decrease compared to the fourth quarter of 2025 U.S. Small Business Administration (“SBA”) lending and commercial banking loan originations of $208.1 million, compared to $126.4 million for the fourth quarter of 2025. Significant loan growth resulted in total on-balance sheet loans exceeding $1.0 billion as of March 31, 2026, a historic milestone for the Company Gain on loan sales of $3.8 million on loans sold of $79.0 million, compared to gain on loan sales of $3.6 million on loans sold of $92.3 million for the fourth quarter of 2025 Gain on loan sales margin(1) of 4.79% compared to 3.93% for the fourth quarter of 2025 Credit card transaction volume of $109.3 million and net interchange fees of $2.2 million, compared to $99.3 million and $1.8 million, respectively, for the fourth quarter of 2025 GBank partners with BoltBetz to become sole provider of gamer deposit accounts on the BoltBetz App Adjusted diluted earnings per share excludes certain items presented in the table below. Comments from Ed Nigro, Executive Chairman and CEO “In 2025, credit card issuers, including GBank, experienced a significant escalation in bot-driven fraud activity that was undetected by legacy detection controls across the industry,” commented Ed Nigro, Executive Chairman and Chief Executive Officer of the Company. Mr. Nigro continued by commenting that, “GBank limited use of its legacy application system in mid-September 2025 and launched its new credit card application platform on November 17, 2025, followed by a new monitoring platform during the first quarter of 2026. Please see Exhibit A to this report detailing the updated measures in place. This combined technology not only prevented new bot fraud accounts, but also identified embedded bot fraud resulting from the 2025 direct mail retail credit card campaign. These bot fraud accounts with AI enabled tools mimicked human behavior with gradual monthly spending remained undetected. These reported fraud losses were attributable to non-gaming transactions.” “Net interest income and net interest margin declined in the first quarter of 2026, primarily reflecting the impact of Federal Reserve rate cuts implemented in the fourth quarter of 2025 that impacted our variable-rate loan portfolio beginning January 1, 2026. As is typical in the banking industry, reductions in funding costs have lagged the immediate repricing of earning assets, and competitive deposit pricing has required us to maintain a relatively elevated cost of funds, resulting in margin compression.” “Despite these pressures, net interest margin was 3.86% for the first quarter of 2026, remaining above average when compared to industry peers. We also expect the $208 million in loan growth during the quarter—much of which originated late in the first quarter of 2026—to support future margin expansion. From a funding perspective, we continue to actively manage deposit pricing and evaluate alternative funding strategies,” continued Mr. Nigro. “While we acknowledge the challenges of the quarter, we are optimistic about the future and believe the resilience and innovation of GBank shall continue to produce positive growth and meaningful results,” concluded Mr. Nigro. Financial Results Income Statement Net interest income totaled $12.2 million for the first quarter of 2026, reflecting a decrease of $1.3 million, or 9.4%, compared to $13.5 million for the fourth quarter of 2025, and an increase of $297 thousand, or 2.5%, compared to the first quarter of 2025. The decrease in net interest income when compared to the fourth quarter of 2025 was primarily attributable to the impact of a 50 basis point decrease in the target federal funds rate on the Company's variable rate loan portfolio. Net interest income during the first quarter of 2026 was also impacted by interest income reversals related to nonaccrual loans totaling $280 thousand and two fewer days in the quarter resulting in a decrease in interest income quarter over quarter. The increase in net interest income during the first quarter of 2026 when compared to the first quarter of 2025 was primarily volume driven, as higher interest income from growth in average loan and interest-bearing cash balances more than offset increases in interest expense resulting from higher average balances of interest-bearing deposits. The yield on investment securities was 4.39% for the first quarter of 2026, compared to 4.51% for the fourth quarter of 2025 and 4.94% for the first quarter of 2025. The decrease in the yield when compared to the previous quarter and the same quarter of 2025 was the result of both (i) a reduction in yield on certain variable rate securities due to lower long-term interest rates, and (ii) a change in the mix of investment securities held resulting from the sale of the held-to-maturity investment portfolio during the fourth quarter of 2025, and (iii) the purchase of $44 million of available for sale mortgage backed securities during the first quarter of 2026. The Company’s net interest margin for the first quarter of 2026 was 3.86%, compared to 4.21% for the fourth quarter of 2025 and 4.47% for the first quarter of 2025. The decrease in net interest margin during the first quarter of 2026 when compared to the previous quarter was attributable to the market rate cuts and nonaccrual interest reversals noted above. The year-over-year decline in quarterly net interest margin reflects the impact of a cumulative 75 basis point reduction in the target federal funds rate on the Company’s variable-rate loan portfolio over the preceding twelve months. The Company recorded a provision for credit losses on loans of $2.3 million for the first quarter of 2026, compared to $130 thousand of provision reversal (benefit) recorded during the fourth quarter of 2025, and $710 thousand of provision expense recorded during the first quarter of 2025. The provision for credit losses on loans during the first quarter of 2026 reflects an increase of $1.4 million related to specific reserves on individually evaluated commercial real estate - owner occupied, commercial real estate - non-owner occupied, and commercial and industrial loans. Additionally, the increase includes $860 thousand related to non-guaranteed loan growth primarily within GBank's commercial real estate - non-owner occupied loan portfolio. Non-interest income was $7.5 million for the first quarter of 2026, compared to $7.3 million for the fourth quarter of 2025, and $5.5 million for the first quarter of 2025. The $191 thousand increase in non-interest income during the first quarter of 2026 when compared to the fourth quarter of 2025 was primarily due to an increase in net gains on sales of loans of $165 thousand as well as an increase in net interchange fees of $388 thousand. These favorable variances were offset by a $426 thousand decrease in gain on sale of investment securities as no sales occurred in the first quarter of 2026. The $2.0 million increase in non-interest income during the first quarter of 2026 when compared to the first quarter of 2025 was primarily driven by favorable increases in net gains on sales of loans of $1.3 million and loan servicing income of $295 thousand. Additionally, other income reflects an increase of $253 thousand primarily due to an increase in bank owned life insurance income of $229 thousand. Net revenue(1) totaled $19.6 million for the first quarter of 2026, representing a decrease of $1.1 million, or 5.2%, compared to $20.7 million for the fourth quarter of 2025. Net revenue for the first quarter of 2026 increased $2.3 million, or 13.2%, when compared to $17.4 million for the first quarter of 2025. Non-interest expense was $15.9 million during the first quarter of 2026, compared to $11.5 million for the fourth quarter of 2025 and $10.9 million for the first quarter of 2025. The quarter-over-quarter increase in non-interest expense was principally due to the $4.2 million of third-party credit card fraud expense incurred during the quarter. The higher salary and employee benefits costs reflect higher stock-based compensation expense as well as increases in full-time equivalent employees and annual cost increases. The Company’s efficiency ratio was 80.8% for the first quarter of 2026, compared to 55.3% for the fourth quarter of 2025 and 62.8% for the first quarter of 2025. (1) See Reconciliation of Non-GAAP Financial Measures Income tax expense was $139 thousand for the quarter ended March 31, 2026, compared to $2.0 million for the fourth quarter of 2025, and $1.2 million for the first quarter of 2025. The Company’s effective tax rate was 9.4% for the quarter ended March 31, 2026, compared to 19.1% for the quarter ended December 31, 2025, and 23.1% for the quarter ended March 31, 2025. The fluctuations in the effective tax rate are largely driven by the timing and volume of certain stock-based compensation transactions resulting in tax benefits to the Company. Net income was $1.3 million for the first quarter of 2026, a decrease of $6.1 million from $7.4 million for the fourth quarter of 2025, and an increase of $3.2 million from $4.5 million during the first quarter of 2025. Diluted earnings per share were $0.09 for the first quarter of 2026, compared to $0.51 for the fourth quarter of 2025 and $0.31 for the first quarter of 2025. Balance Sheet Total assets were $1.4 billion as of both March 31, 2026 and December 31, 2025, an increase of 17.1% from $1.2 billion as of March 31, 2025. The increase in total assets from March 31, 2025 was primarily driven by increases in loans and other assets offset by a decrease in cash and cash equivalents. Total assets under management, including $1.1 billion of sold loans for which servicing is retained, totaled $2.5 billion as of March 31, 2026. The investment securities portfolio increased by $40.3 million during the first quarter of 2026 primarily due to the purchase of ten available for sale investment securities totaling $44.0 million. This increase was partially offset by principal paydowns. Total loans, net of deferred fees and costs, were $1.0 billion as of March 31, 2026, compared to $959.3 million as of December 31, 2025, and $843.4 million as of March 31, 2025. Loans, net of deferred fees and costs increased $65.9 million during the first quarter of 2026 primarily due to increases in commercial and industrial and commercial real estate loans. The increase in loans, net of deferred fees and costs, of $181.8 million from March 31, 2025, was primarily driven by an increase of $151.8 million in commercial real estate loans. Total government guaranteed loans as a percentage of loans(1) were 17.3% as of March 31, 2026, compared to 19.2% as of December 31, 2025, and 24.2% as of March 31, 2025. The Company’s allowance for credit losses totaled $10.8 million as of March 31, 2026, compared to $9.9 million as of December 31, 2025, and $9.0 million as of March 31, 2025. The allowance for credit losses as a percentage of total loans was 1.05% as of March 31, 2026, compared to 1.03% as of December 31, 2025 and 1.07% as of March 31, 2025. The allowance for credit losses as a percentage of total loans, excluding government guaranteed portions(1), was 1.27% as of March 31, 2026, compared to 1.28% as of December 31, 2025, and 1.41% as of March 31, 2025. Deposits totaled $1.2 billion as of March 31, 2026, an increase of $28.3 million from $1.1 billion as of December 31, 2025, and an increase of $175.0 million from $995.9 million as of March 31, 2025. By deposit type, the increase from the prior quarter was driven by an increase of $26.7 million in certificates of deposit, a decrease of $7.6 million in savings and money market accounts, and an $8.2 million increase in interest bearing demand deposits. Noninterest-bearing deposits totaled $215.1 million as of March 31, 2026, an increase of $936 thousand from $214.1 million as of December 31, 2025, and a decrease of $27.6 million from $242.7 million as of March 31, 2025. The Company’s ratio of loans to deposits was 87.5% as of March 31, 2026, compared to 83.9% as of December 31, 2025, and 84.7% as of March 31, 2025. The Company had no short-term borrowings as of March 31, 2026 and March 31, 2025, compared to $371 thousand of short-term borrowings as of December 31, 2025. As of March 31, 2026, the Company had approximately $480.5 million in available borrowing capacity from the Federal Reserve Bank of San Francisco, the Federal Home Loan Bank of San Francisco, and through its various fed funds lines of credit with its correspondent banks. Subordinated notes outstanding totaled $30.3 million as of March 31, 2026 compared to $26.2 million as of December 31, 2025 and $26.1 million as of March 31, 2025. The increase reflects the issuance of $11.0 million of subordinated debt issued in January 2026 which matures on January 15, 2036. This increase was partially offset by the redemption of $6.5 million of subordinated debt originally issued in 2020. Stockholders’ equity was $167.6 million as of March 31, 2026, compared to $165.8 million as of December 31, 2025, and $146.6 million as of March 31, 2025. The increase in stockholders’ equity when compared to both the prior quarter and the prior year is attributable to increases in retained earnings resulting from net income earned during each respective period. The Company’s ratio of common equity to total assets was 12.03% as of March 31, 2026 compared to 12.19% as of December 31, 2025 and 12.32% as of March 31, 2025. The Bank’s Tier 1 leverage ratio was 13.4% as of March 31, 2026 and December 31, 2025, and 14.2% as of March 31, 2025. The Company’s book value per share was $11.58 as of March 31, 2026, an increase of 0.5% from $11.52 as of December 31, 2025, and an increase of 12.8% from $10.27 as of March 31, 2025. (1) See Reconciliation of Non-GAAP Financial Measures Asset Quality The Company recorded a provision for credit loss expense for loans of $2.3 million for the first quarter of 2026, compared to a reversal (benefit) of the provision for credit losses for loans of $130 thousand recorded during the fourth quarter of 2025 and $710 thousand of provision expense recorded during the first quarter of 2025. Net loan charge-offs in the first quarter of 2026 totaled $1.5 million, or 0.57% of average net loans (annualized), compared to net loan charge-offs of $557 thousand, or 0.21% of average net loans (annualized) in the fourth quarter of 2025 and $828 thousand of net loan charge-offs, or 0.39% of average net loans (annualized) during the first quarter of 2025. Net loan charge-offs in the first quarter of 2026 were largely attributable to credit card balances. Non-performing assets totaled $44.1 million as of March 31, 2026, an increase of $6.7 million from $37.4 million as of December 31, 2025, and an increase of $23.8 million from $20.4 million as of March 31, 2025. The ratio of total non-performing assets to total assets was 3.17% as of March 31, 2026, compared to 2.75% as of December 31, 2025, and 1.71% as of March 31, 2025. Our non-performing assets to total assets ratio was 3.17% as of March 31, 2026, however, this ratio includes government guaranteed balances of $30.9 million in the balance of non-performing assets (numerator). Excluding the government guaranteed portion of non-performing assets(1), total at-risk non-performing assets were $13.2 million as of March 31, 2026 and the ratio of non-performing assets excluding the government guaranteed portion(1) reflects a very manageable 0.95% of total assets. The Company continuously monitors its non-performing asset portfolio and believes the financial risk related to these assets is well contained. In making this assessment, it is important to consider the process we undertake when a collateralized SBA non-performing asset requires collection efforts. We repurchase the sold portion of the government guaranteed loan to affect the foreclosure and resale of the property. This process immediately increases the non-performing asset balance on our balance sheet to include the government guaranteed portion – thus the importance of always adjusting for the government guaranteed portion of the non-performing assets as well as considering our “off balance sheet” assets consisting of the sold portion of USDA and SBA guaranteed loans of $1.1 billion that increase our total assets under management to $2.5 billion. Other Financial and Operational Highlights SBA Lending and Commercial Banking SBA lending and commercial loan originations totaled $208.1 million during the first quarter of 2026, compared to $126.4 million for the fourth quarter of 2025 and $133.0 million for the first quarter of 2025. SBA loan originations favorably rebounded as originations during the fourth quarter of 2025 were limited by the federal government shut down in effect from October 1, 2025 to November 15, 2025. We continue to see improvement in our pretax gain on sale of loans margin as the average pretax gain on sale of loans margin was 4.79% for the first quarter of 2026, compared to 3.93% for the fourth quarter of 2025. This improvement in pricing quarter-over-quarter more than offset the volume decrease in loan sales, resulting in a 4.6% increase in gain on sale of loans when compared to the fourth quarter of 2025. We expect very strong gain on loan sales revenues in the second quarter of 2026 as available for sale loans were $74.5 million at March 31, 2026 compared to $46.0 million as December 31, 2025. Gaming/Fintech Our gaming and financial technology operations have demonstrated exceptional resilience and execution this quarter. By rapidly adapting to industry shifts and deploying innovative product solutions, we have not only mitigated market headwinds but continued to capture significant growth and solidify our technological infrastructure. We are transitioning from building and controlling to scaling our robust platform. BoltBetz Version 2 GBank's strategic partner, BoltBetz, went live during the first quarter of 2026 with a limited Distill Tavern launch to evaluate system functionality, train staff, test marketing and promotional campaigns, spur adoption, and increase player engagement. Concurrently, BoltBetz Version 2 (V2) was developed and licensed with the Nevada Gaming Control Board (GCB). V2 greatly simplifies player sign-up process and enables onboarding of multiple gaming operators. This GCB license is specifically conditioned upon all player funds being held by GBank rather than held by the gaming operator or BoltBetz. This condition speaks directly to the foundational role GBank plays within the gaming ecosystem and reinforces the structural integrity of our platform. (1) See Reconciliation of Non-GAAP Financial Measures The V2 app is now available for download on both Apple iOS and Android devices and is fully functional across all Distill Tavern locations. BoltBetz is working toward the upcoming Terrible Herbst, Inc. gaming launch, which is expected to begin in the third quarter of 2026. Bankroll BoltBetz and BankCard Services Inc. (BCS) have signed a binding terms sheet establishing Bankroll as a 50/50 joint venture. Bankroll will provide a white-labeled, end-to-end digital payments solution for gaming fintech companies and wallet providers, enabling the efficient onboarding of digital wallet solutions and delivering real-time funds movement through utilization of BCS's proprietary Pooled Player Account (PPA™) Program, GBank's banking infrastructure, and BoltBetz’s wallet technology. BoltBetz and Bankroll have active and developing pipelines, with ongoing negotiations across gaming and payments operators. Credit Card Market Headwinds & Resilient Navigation Despite certain credit card restrictions by major sportsbooks, we grew our first quarter credit card transaction volume by $10 million through immediate strategic pivots including the creation of our credit card collateral accounts (“Assured Payment Accounts”). This solution facilitates higher player spend with significantly reduced risk through secure internal transfers. Customer acceptance has been exceptional, with these accounts comprising approximately 43% of our total transaction volume during the first quarter of 2026. We have developed a gaming prepaid debit card program designed for our gaming customers for loading all sports, iGaming, slots and payment apps across the United States. This product is on track to be launched during the third quarter of 2026. Financial Impact: Non-Interest Bearing Deposits, Fee Income and Profitability Growth Our gaming credit card has created an invaluable GBank customer base with thousands of high-quality/high limit gaming clients that actively participate in sports, iGaming (i.e. slots, poker, and table games), lotteries, and horse racing as well as sweepstakes (games of skill) and predictive markets apps. Further, we anticipate that this customer base shall substantively grow as BoltBetz/Bankroll apps are deployed across casino slot markets. Gaming apps use multiple funding deposit rails, including but not limited to ACH, debit cards, wire, credit cards, RTP and RFP. We have and are launching new GBank payments solutions for each deposit rail including: GBank, as an originating depository financial institution (ODFI) began processing all GBank credit card ACH transactions during the first quarter of 2026 and is developing technology to significantly scale for a pipeline of payments clients. Our new VISA debit card with rewards for gamers is anticipated to launch in the third quarter of 2026 In collaboration with BCS, BoltBetz, and BankRoll, we anticipate growth in PPA™ accounts in late 2026 As previously mentioned, the new credit card assured payment accounts program targets high net worth/high limit gaming customers Development of a Master card prepaid card for lotteries anticipated to launch in 3rd quarter with new BCS Agreement We believe the most significant financial impact of our strategy is deposit transformation. We are actively working as a goal to replace higher-cost deposits with non-interest-bearing deposits generated through our payments and gaming flows by year end. This transformation positively increases our net interest margin, drives fee income, earnings growth, and improves overall balance sheet efficiency. Our conviction in the total addressable market for our various products remains unchanged. The opportunity to embed sound banking solutions and customer protections across gaming payments is compelling, and we are strategically positioned to grow our market share. Earnings Call The Company will host its first quarter 2026 earnings call on Wednesday April 29, 2026 at 2:00 p.m. PST. Interested parties can participate remotely via Internet connectivity. There will be no physical location for attendance. Interested parties may register for the event using this link: https://gbank-financial-earnings-q126.open-exchange.net/ About GBank Financial Holdings Inc. GBank Financial Holdings Inc. is a bank holding company headquartered in Las Vegas, Nevada and is listed on the Nasdaq Capital Market under the symbol “GBFH.” Through our wholly owned bank subsidiary, GBank, we operate two full-service commercial branches in Las Vegas, Nevada to provide a broad range of business, commercial and retail banking products and services to small businesses, middle-market enterprises, public entities and affluent individuals in Nevada, California, Utah, and Arizona. Please visit www.gbankfinancialholdings.com for more information. Non-GAAP Financial Measures Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release. Available Information The Company routinely posts important information for investors on its web site (under www.gbankfinancialholdings.com and, more specifically, under the News & Media tab at www.gbankfinancialholdings.com/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect the Company’s current views with respect to future events and the Company’s financial performance. Any statements about the Company’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases, and include, but are not limited to, statements made by Mr. Nigro. The Company cautions that the forward-looking statements in this press release are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Factors that could cause such changes include, but are not limited to, (i) the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; (ii) potential recession in the United States and our market areas; (iii) the impacts related to or resulting from uncertainty in the banking industry as a whole; (iv) increased competition for deposits in our market areas and related changes in deposit customer behavior; (v) the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; (vi) the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; (vii) the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; (viii) changes in unemployment rates in the United States and our market areas; (ix) adverse changes in customer spending and savings habits; (x) declines in commercial real estate values and prices; (xi) a deterioration of the credit rating for U.S. long-term sovereign debt or uncertainty regarding United States fiscal debt, deficit and budget matters; (xii) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; (xiii) severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of the policies of the current U.S. presidential administration or Congress; (xiv) the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; (xv) competition and market expansion opportunities; (xvi) changes in non-interest expenditures or in the anticipated benefits of such expenditures; (xvii) the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; (xviii) current or future litigation, regulatory examinations or other legal and/or regulatory actions; and (xix) changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which the Company’s business and future financial performance are subject is contained in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2025 and other documents the Company files with the SEC from time to time. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which the Company is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. For Further Information, Contact: GBank Financial Holdings Inc. Edward Nigro Executive Chairman and CEO 702-851-4200 [email protected] GBank Financial Holdings Inc. Exhibit A (Unaudited) A photo accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/b087bc01-7a41-48c8-914e-9f8e51fe0a18

GBank recorded a $0.22 per share charge-off from third‑party credit‑card fraud tied to a discontinued retail card program, but management said a new “state‑of‑the‑art” system went live on November 17 and has contained further bot‑related activity. First‑quarter loan originations exceeded $208 million (up 56% YoY), pushing on‑balance sheet loans past $1 billion and total assets under management to $2.5 billion, though allowances and at‑risk nonperforming loans rose to reflect growth and adjusted collateral valuations. The bank is scaling its gaming payments strategy—launching Bold Bets V2, the Bankroll payments venture, live ACH processing, and a planned Visa prepaid gaming card expected in Q3—aiming to drive transaction volumes and new non‑interest deposits. Interested in GBank Financial Holdings Inc.? Here are five stocks we like better. GBank Financial (NASDAQ:GBFH) used its first-quarter 2026 earnings call to address a third-party credit card fraud charge-off that weighed on results, while also highlighting loan growth, SBA performance, and progress in its gaming payments technology initiatives. Management said the quarter included a $0.22 per share charge-off related to third-party credit card fraud within a retail card program that was launched last year and later canceled. The company described the offering as different from its core gaming-focused credit card efforts. → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? Ed Nigro, Executive Chairman and CEO, said two direct mail campaigns totaling 900,000 pre-qualified recipients increased exposure to what he characterized as “AI-generated bot fraud.” He said the fraud was tied to a legacy system and not to the company’s gaming card customers. In response, Nigro said the bank implemented a new system that went live November 17 that he described as “state-of-the-art,” adding that the company has “seen no additional substantive fraud issues prospectively.” On the call, he pointed investors to an exhibit filed with the company’s Form 8-K detailing application and monitoring enhancements, including behavioral analytics designed to detect non-human application activity. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank Asked whether there would be residual expenses next quarter, management said it did not expect extraordinary costs and that operations were back to “normal.” Nigro said the company had identified and removed bot-related accounts and that, under the new system, attempted bot attacks have been contained. Nigro said first-quarter loan originations exceeded $208 million, a 56% increase versus the first quarter of 2025 and a 65% increase compared to the fourth quarter of 2025. SBA originations totaled $190 million, which management noted came despite lingering effects from a government shutdown in the prior quarter. → Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report Management said that, for the first time, GBank surpassed $1 billion in on-balance sheet loans. Including off-balance sheet loans, the company reported total assets under management of $2.5 billion as of March 31, 2026. The company recorded an allowance for credit losses provision expense of $2.3 million for the quarter, which Nigro said included $860,000 related to loan growth and a $1.4 million increase in specific reserves tied to non-performing loans and updated collateral balances. Management also reported that the balance of at-risk non-performing loans increased to $13.2 million at March 31, 2026, from $12.5 million at December 31, 2025. In response to analyst questions, management said reserve increases reflected both growth in retained loan balances and higher reserves on existing non-performing assets where valuations were adjusted during liquidation efforts. Management said net interest income declined and net interest margin compressed compared with the fourth quarter of 2025. Nigro attributed the pressure to a 50 basis point decrease in market rates enacted in the fourth quarter that affected the loan portfolio beginning January 1, noting that roughly 65% of the loan portfolio reprices quarterly (about $686 million). Funding costs also remained elevated, with Nigro saying deposit market pricing “lags” Federal Reserve actions. He said the company did not adjust deposit pricing during the first quarter in order to remain competitive, but is implementing measures to lower deposit costs. Interest income was also affected by the sale of $52 million in investment securities during the fourth quarter of 2025. The company redeployed $44 million during the first quarter, though those purchases were spread across the quarter. Nigro said the full interest impact would be reflected in the second quarter. Despite the compression, management reported a bank-only net interest margin of 4.02%, which Nigro said remained “amongst the highest” of its peers. He also told analysts he expected net interest margin and net interest income to recover in the second quarter as reinvestment and loan growth flow through results. The company’s SBA business was a key positive discussion point. Nigro said changes made in the fourth quarter to restructure gain-on-sale pricing contributed to a gain-on-sale margin of 4.79% in the first quarter, above the company’s 4% budget expectation. GBank sold $79 million of government-guaranteed loans during the quarter, generating a net gain on sale of $3.8 million. Loans held for sale were $74 million as of March 31, 2026. Management said April sales volumes were already running ahead of expectations, citing $39.5 million sold month-to-date at a $2 million gain on sale. Nigro said the company saw gain-on-sale margins above 5% in April, attributing the improvement to wider spreads as interest rates declined. He said the bank expects gain-on-sale results to run above projections by roughly 0.75% to 1%. Management also discussed ongoing development of gaming-related payments products, including its credit card program, the Bold Bets app, and a newly announced Bankroll venture. Credit card trends: Nigro said restrictions by several major sportsbooks on credit card acceptance led to lower spending among lower-limit customers, though the company still grew the quarter by 10 million transactions over the prior quarter. He said the bank is focusing on a new gaming credit card program targeting high-limit customers through a secured card account system designed to enable large, frequent transfers with limited credit risk to the bank. He also cited $109 million in credit card transactions in the quarter and said April was tracking at roughly $40 million in transactions early in the month. ACH processing: Nigro said GBank is now live with its own ACH processing for its credit card, which he said provides deeper visibility into cash transactions. He added the company plans to expand as an originating depository financial institution (ODFI) and described a pipeline of customers for ACH processing. Visa prepaid debit card: Nigro announced plans to launch a new Visa prepaid debit card—its third prepaid card issuance overall—designed for gaming app customers and intended to provide access to wagering platforms that limit credit cards. He said the product includes “unique funding processes” and is expected to provide a new source of non-interest deposits. In Q&A, management said it expects to launch the prepaid card in the third quarter. Todd A. Nigro, Executive Vice-Chairman, said Bold Bets launched version two of its app this month and that it is now available on both Android and Apple devices. He said V2 was built over the past six months to onboard multiple gaming operators and to maximize payments and rewards functionality while maintaining compliance with gaming and banking regulatory frameworks. According to Todd Nigro, approval by the Nevada Gaming Control Board’s technology division should help speed licensure in other states. He said Distill Taverns received approval to use the V2 Bold Bets wallet technology provided GBank serves as the sponsor bank. He also discussed Bankroll, which he described as a product focused on the digital wallet or payments layer of the Bold Bets platform. Todd Nigro said Bankroll is intended to allow other gaming payments providers—including those that may compete with Bold Bets—to access proprietary systems to offer the payment solution to their clients. Both Bold Bets and Bankroll have active pipelines and ongoing negotiations, he said. In closing remarks, Ed Nigro characterized the fraud episode as “a hiccup, not a heart attack,” and reiterated management’s focus on both the core bank’s lending growth and the expansion of gaming payments and technology initiatives. GBank Financial Holdings Inc operates as a bank holding company for GBank which provides banking services to commercial and consumer customers principally in Nevada. The company offers business and personal checking and savings accounts. GBank Financial Holdings Inc is based in Las Vegas, Nevada. The article "GBank Financial Q1 Earnings Call Highlights" was originally published by MarketBeat.