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GBank Financial Holdings (GBFH)
NASDAQ:GBFH
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GBank Financial Holdings
(NASDAQ:GBFH)
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Rating:67Neutral
Price Target:
$36.00
▲(10.67% Upside)
The score is led by solid financial performance (strong margins, improved leverage, better ROE) and a mostly positive earnings outlook with tangible operational fixes underway. Offsetting factors include weak longer-term technical trend signals (below key moving averages with negative MACD) and a relatively high P/E with no dividend support, alongside lingering execution risk from prior payments/fraud disruptions.
Positive Factors
Robust balance sheet & lower leverage
Material deleveraging and a 13.25% ROE improve capital resilience and regulatory headroom. A stronger equity base reduces insolvency risk and supports lending, product rollouts and partnership capital needs over the next several quarters, enabling steadier growth and investment.
Above-peer net interest margin
Sustained NIM advantage provides a durable earnings cushion versus peers and can offset pressure from rate cuts. Higher core margin improves net interest income stability and funds reinvestment in payments and SBA channels, supporting multi-month profitability resilience.
Established SBA franchise with low losses
Scale in SBA originations, improving gain-on-sale economics and historically minimal charge-offs point to a risk‑managed lending franchise. Consistent SBA production generates repeatable fee income and transferable underwriting expertise that supports steady earnings over months.
Negative Factors
Credit-card fraud disrupted customer acquisition
A large fraud episode halted marketing and constrained card volume growth, interrupting a key noninterest income stream. Even with fixes, rebuilding safe acquisition channels and trust is a multi-month operational challenge, risking slower revenue recovery until controls prove durable.
Third-party platform & ACH dependencies
Reliance on external platforms and processors exposed acceptance channels and cash‑flow timing to regulatory and vendor shifts. Bringing ACH in‑house and replacing lost payment rails require time and investment, creating structural execution risk to payments volume and fee trends.
Rising operating expense and elevated funding cost
Higher staffing, tech and marketing expense increases operating leverage before scale benefits; coupled with relatively expensive subordinated capital, this can pressure earnings and ROE in the near term. Profit recovery depends on volume scaling and sustained margin delivery.
GBank Financial Holdings (GBFH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$467.65M
Dividend YieldN/A
Average Volume (3M)53.79K
Price to Earnings (P/E)22.6
Beta (1Y)0.95
Revenue Growth26.56%
EPS Growth0.85%
CountryUS
Employees175
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.52
Shares Outstanding14,376,113
10 Day Avg. Volume56,598
30 Day Avg. Volume53,786
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)4.10
Price to Sales (P/S)6.31
P/FCF Ratio21.93
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue4.89
Enterprise Value/Gross Profit8.15
Enterprise Value/Ebitda19.19
Forecast
1Y Price Target
$47.00Price Target Upside44.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
GBank Financial Holdings Business Overview & Revenue Model
Company DescriptionGBank Financial Holdings Inc. operates as a bank holding company for Bank of George that provides banking products and services in Nevada. The company offers business and personal checking accounts. It also provides personal saving services, including money market accounts, certificates of deposit, and personal savings accounts; and business savings, which includes business money market accounts, business certificates of deposit, and business savings accounts. In addition, it offers personal and small business administration loans; and business loans, including commercial real estate loans, business lines of credit, equipment loans, term loans, accounts receivable/inventory financing, and medical/professional loans. Further, the company provides online and mobile banking services, and other personal and business account services. GBank Financial Holdings Inc. was founded in 2007 and is based in Las Vegas, Nevada.
How the Company Makes MoneyGBank Financial Holdings generates revenue through multiple key streams. Primarily, the company earns money from net interest income, which is the difference between the interest it pays on deposits and the interest it earns on loans. This includes personal loans, mortgages, and business loans. Additionally, GBFH generates fee income from various banking services such as account maintenance fees, transaction fees, investment management fees, and financial advisory services. The company may also engage in wealth management, where it earns management fees from managing client portfolios. Strategic partnerships with technology providers enhance its digital banking capabilities, attracting a broader customer base and increasing transaction volumes, thereby contributing to its overall earnings.
GBank Financial Holdings Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong execution and clear remedy actions tied to material operational challenges. Positives include record quarterly earnings, above-peer net interest margin, improving SBA gain-on-sale economics, low historical SBA losses, licensing and early deployment of the BoltBetz PPA with a large addressable market, and meaningful improvements to fraud/KYC controls that have stopped fraud penetration in the recent relaunch period. Negatives center on the earlier credit-card fraud and application issues that forced a marketing pause and reduced transactions, ACH/vendor failures requiring in‑house remediation, regulatory/partner changes (DraftKings/FanDuel) that removed some acceptance channels, and near-term expense and capital costs tied to product and people investments. Overall, management has identified root causes and implemented technical, operational and incentive fixes; the company shows operational recovery signs and strong core financial metrics, but some execution and timing risks remain.Q4-2025 Updates
Positive Updates
Record Quarterly Earnings
Reported record Q4 earnings of $7.4M, or $0.52 diluted EPS, an increase of $3.1M versus the prior quarter ($4.3M). After adjusting for one-time items, FY2025 diluted EPS was $1.66 vs. $1.37 prior year (up ~21%).
Strong Multi-Year Growth
Company CAGR of 28.3% over the last 8 years, demonstrating sustained top-line expansion and growth momentum.
Net Interest Margin Outperformance
Reported NIM of 4.33% for 2025 versus an industry average of ~3.7%, indicating above-peer core margin performance.
Improving SBA Gain-on-Sale Economics
GAAP gain-on-sale increased from 3.24% to 3.98% in Q4; management expects GAAP gain-on-sale to trend above 4% in 2026. January sales: 12 loans (~$32M) with 8 loans at spread >=1.25%.
SBA Production and Low Historical Losses
Since program start through Q3 2025: 1,002 SBA loans originated (cumulative), $2.473B in hotel 7(a) originations to date, 592 active hotel loans (on/off balance $1.622B). Total historical charge-offs on hotel loans only $2.8M; current hotel loan loss reserve $10.5M.
BoltBetz / PPA Licensing and Market Opportunity
BoltBetz licensed (Nov 21, 2025) as an Associated Equipment Provider; second operator (Distill Taverns) approved to use BoltBetz and confirmed GBank will hold funds (no reserve required). Addressable bricks-and-mortar slot market cited: ~150,000 machines in Nevada and ~800,000 across U.S. potential pipeline.
Credit Card Fraud Controls & Operational Fixes
After relaunch, implemented KYC and fraud stack (Plaid, NeuroID, Precise ID), moved call handling in-house, introduced loyalty/host programs and AI call systems. Management reported ~10,000 fraudulent applications over a holiday weekend with only 6 approvals and claimed 'not one fraud has gotten through' in the last 60 days.
Interchange & Noninterest Income Growth
Interchange income increased by approximately $7M year-over-year, contributing to higher noninterest income while the credit card program is already contributing positively to the bottom line despite being early-stage.
Capital & Liability Management Action
Redeemed $6.5M of subordinated notes that would have repriced to a much higher rate; issued $11M subordinated debt (10-year life, fixed first 5 years at 7.25%) to fund repayment and reduce future interest cost risk.
Negative Updates
Credit Card Application Fraud and Program Disruption
Massive fraud and a problematic application vendor and an ill-targeted direct-mail campaign (700,000 recipients) forced a shutdown and redesign of the credit card application flow; marketing was paused, disrupting customer acquisition and volumes.
Transaction Volume Declines and Volatility
Management described volatile card transaction volumes: prior-year baseline ~$73M to a peak of ~ $400M (annualized growth), but Q4 activity 'settled in around $99M' (after pausing marketing and tightening controls). Recent quarters described as 'relatively flat' while fixes were implemented.
ACH Processing & Fraud Issues
ACH payments via third-party processor (i2c) exhibited delayed clearing and fraud exposure, prompting management to bring ACH processing in-house (ODFI) — a material operational undertaking that temporarily constrained card activity.
Third-Party Platform Headwinds
Major industry platforms (DraftKings, FanDuel) limited or stopped direct credit-card loads in some jurisdictions due to regulatory/fines, reducing available acceptance channels and contributing to near-term volume pressure.
Government Shutdown Impact on SBA Originations
Federal government shutdown materially depressed SBA originations in Q4 (originations fell from >$200M in Q3 to $118M in Q4) and compressed timing of loan sales; origination/sale timing skewed results for the quarter.
Rising Expense & Variable Cost Exposure
Investments in people, reorganization (new CTO, Payments Director, General Counsel), and transaction-linked variable costs (card processing, influencer/marketing) are expected to put upward pressure on noninterest expense as volumes scale.
Refinancing at Elevated Cost
New subordinated issuance at 7.25% (fixed first 5 years) provided capital and avoided a repricing to >8%, but still represents relatively high-cost capital compared with lower historical levels.
Company Guidance
Management guided that GAAP gain-on-sale income should trend above 4% in 2026 (up from 3.24% to 3.98% in Q4), and that net interest margin should remain roughly stable around 4.33% (2025 actual vs. ~3.7% industry) even with anticipated Fed cuts, driven by expected growth in noninterest-bearing deposits from the BoltBetz PPA. They plan to restart credit-card marketing and scale volumes (Q4 transactions settled ~$99M, peak activity this year near $400M vs. $73M prior year) with a potential pathway to roughly $40–60M/month (implying up to ~$800M annualized) if fraud controls hold (no fraud penetrations in the last 60 days after a 10,000-app attack weekend). Key operating metrics: average card balance ~$10M, interchange added ~+$7M to noninterest income in 2025, ACH risks being brought in-house to eliminate 3-business-day delays; SBA remains a core grower (January sales: 12 loans, ~$32M, 8 with ≥1.25% spread), with long‑run SBA stats of 1,002 loans since 2015, ~$2.47B hotel originations, 12 defaults and $2.8M cumulative charge-offs, $761.6M hotel principal on‑balance ($243M guaranteed), $860M off‑balance, and a $10.5M reserve.GBank Financial Holdings Financial Statement Overview
Summary
Strong underlying profitability and improved margins (net margin up to 31% in 2024) plus a robust balance sheet with materially lower leverage (debt-to-equity 0.19) and improved ROE (13.25%). Cash flow improved sharply (FCF growth), but the low operating cash flow to net income ratio (0.043) and the 2024 revenue growth decline (-8.39%) temper the score.Income Statement
GBank Financial Holdings has demonstrated strong profitability with a consistent gross profit margin of 100% over the years. The net profit margin has improved significantly to 31% in 2024 from 18.5% in 2023, indicating enhanced efficiency in converting revenue into profit. However, the revenue growth rate has declined by 8.39% in 2024, which is a concern. The EBIT and EBITDA margins have also shown improvement, reflecting better operational performance.75
Positive
Balance Sheet
The company's balance sheet is robust with a low debt-to-equity ratio of 0.19 in 2024, down from 0.62 in 2023, indicating reduced leverage and financial risk. The return on equity has improved to 13.25%, showcasing effective use of equity to generate profits. The equity ratio remains strong, reflecting a stable capital structure.80
Positive
Cash Flow
GBank Financial Holdings has shown a remarkable turnaround in cash flow with a significant free cash flow growth rate of 4288.65% in 2024. The operating cash flow to net income ratio is low at 0.043, suggesting potential issues in cash generation relative to net income. However, the free cash flow to net income ratio is healthy at 0.99, indicating efficient cash conversion.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 95.80M | 91.41M | 58.96M | 45.24M | 38.50M | 28.75M |
| Gross Profit | 57.48M | 60.14M | 44.68M | 40.47M | 35.95M | 25.23M |
| EBITDA | 24.41M | 24.98M | 15.18M | 15.34M | 14.44M | 9.33M |
| Net Income | 18.78M | 18.64M | 10.92M | 10.87M | 10.98M | 6.98M |
Balance Sheet | ||||||
| Total Assets | 1.30B | 1.13B | 918.38M | 678.70M | 620.30M | 470.64M |
| Cash, Cash Equivalents and Short-Term Investments | 4.99M | 0.00 | 100.59M | 139.41M | 240.12M | 153.23M |
| Total Debt | 5.94M | 30.93M | 61.51M | 28.92M | 27.80M | 11.31M |
| Total Liabilities | 1.14B | 984.87M | 819.95M | 591.91M | 544.51M | 406.02M |
| Stockholders Equity | 158.19M | 140.70M | 98.43M | 86.80M | 75.80M | 64.62M |
Cash Flow | ||||||
| Free Cash Flow | -17.03M | 26.29M | -37.91M | 9.45M | -12.25M | 27.34M |
| Operating Cash Flow | -17.03M | 26.48M | -37.59M | 9.77M | -12.15M | 27.59M |
| Investing Cash Flow | -161.58M | -179.13M | -221.19M | -155.73M | -36.73M | -97.32M |
| Financing Cash Flow | 157.87M | 178.84M | 220.27M | 46.00M | 134.89M | 118.61M |
GBank Financial Holdings Technical Analysis
Negative
32.53
Price Trends
33.99
Negative
36.35
Negative
37.66
Negative
Market Momentum
-0.36
Negative
45.38
Neutral
40.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GBFH, the sentiment is Negative. The current price of 32.53 is below the 20-day moving average (MA) of 32.55, below the 50-day MA of 33.99, and below the 200-day MA of 37.66, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 45.38 is Neutral, neither overbought nor oversold. The STOCH value of 40.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GBFH.
GBank Financial Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $561.20M | 13.02 | 12.03% | 0.73% | 7.81% | 26.91% | |
75 Outperform | $555.92M | 12.76 | 8.49% | 3.59% | 6.86% | 6.11% | |
74 Outperform | $565.91M | 14.68 | 7.45% | 3.92% | 4.26% | -16.52% | |
71 Outperform | $529.90M | 12.91 | 8.63% | ― | 13.96% | 25.74% | |
69 Neutral | $520.72M | 8.86 | 10.83% | 4.97% | 39.98% | 413.87% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $467.65M | 22.58 | 13.68% | ― | 26.56% | 0.85% |
* Financial Sector Average
GBFH
GBank Financial Holdings
32.53
-8.42
-20.56%
AROW
Arrow Financial
33.81
8.82
35.29%
BHB
Bar Harbor Bankshares
33.91
3.82
12.70%
PFIS
Peoples Financial Services
52.10
3.61
7.44%
BWB
Bridgewater Bancshares
19.21
5.43
39.40%
RRBI
Red River Bancshares
83.06
28.04
50.96%
GBank Financial Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
GBank Financial Completes Subordinated Notes Private Placement
Positive
Jan 15, 2026
On January 14, 2026, GBank Financial Holdings completed a $11.0 million private placement of 7.25% fixed-to-floating rate subordinated notes due 2036, issued at par to institutional accredited investors and qualified institutional buyers. The unsecured notes, structured to qualify as Tier 2 capital, carry a fixed 7.25% coupon until January 15, 2031, then reset quarterly at three-month Term SOFR plus 382 basis points until maturity, and are redeemable at the company’s option on or after January 15, 2031 at par plus accrued interest. Management said the transaction strengthens the group’s capital position by providing funds to redeem $6.5 million of subordinated debt issued in 2020 while increasing available capital to support balance sheet growth, underscoring GBank’s continued focus on maintaining high regulatory capital ratios and funding flexibility through capital markets access.
The most recent analyst rating on (GBFH) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on GBank Financial Holdings stock, see the GBFH Stock Forecast page.
Business Operations and StrategyProduct-Related Announcements
GBank’s Partner BoltBetz Gains Key Gaming Approvals
Positive
Dec 10, 2025
On December 10, 2025, GBank Financial Holdings Inc. announced that its strategic partner, BoltBetz, received two significant approvals from the Nevada Gaming Control Board. These approvals allow BoltBetz to integrate its software with Konami’s SYNKROS cashless wagering system and enable Distill and Remedy’s Taverns to use the BoltBetz product, enhancing the company’s position in the gaming industry by providing a novel slot machine funding solution.
The most recent analyst rating on (GBFH) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on GBank Financial Holdings stock, see the GBFH Stock Forecast page.
Executive/Board Changes
GBank Financial Holdings Announces Board Resignation and Appointment
Neutral
Nov 5, 2025
On October 28, 2025, Alan C. Sklar resigned from the Board of Directors of GBank Financial Holdings Inc. and GBank, a decision not related to any disagreements with the company’s operations. Sklar, a founding director, played a crucial role in the company’s growth from a community-focused bank to a national FinTech and gaming presence. On the same day, Timothy P. Herbst was appointed as a director of the company, having served on the bank’s board since 2007, with no special arrangements or related transactions influencing his appointment.
The most recent analyst rating on (GBFH) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on GBank Financial Holdings stock, see the GBFH Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.