The $1.5 million increase in non-interest income during the fourth quarter of 2025 when compared to the fourth quarter of 2024 was driven by favorable increases in (i) credit card net interchange fees of $859 thousand as credit card transaction volume increased from $51.7 million during the fourth quarter of 2024 to $99.3 million for the same period in 2025, (ii) net gains on sales of investment securities of $426 thousand recorded during the fourth quarter of 2025, and (iii) a $366 thousand increase in loan servicing income. 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) potential costs related to the impacts of climate change; (xix) current or future litigation, regulatory examinations or other legal and/or regulatory actions; and (xx) changes in applicable laws and regulations. 2024 Net Revenue(1) Net Interest Income $ 13,455 $ 12,998 $ 12,388 $ 11,894 $ 11,789 $ 50,735 $ 46,200 Non-Interest Income 7,263 7,177 5,384 5,463 5,764 25,286 16,238 Net Revenue $ 20,718 $ 20,175 $ 17,772 $ 17,357 $ 17,553 $ 76,021 $ 62,438 Adjusted Diluted Earnings Per Share Excluding Unusual Items(2) Net Income $ 7,396 $ 4,308 $ 4,755 $ 4,470 $ 5,244 $ 20,929 $ 18,636 Unusual Items: Form S-1 and Uplist Costs - 30 290 759 367 1,079 367 Severance Expenses 257 1,001 - - - 1,258 - Costs Incurred Related to Discontinued Credit Card Marketing Campaign 416 1,692 - - - 2,108 - Net Gain on Sales of Investment Securities (426 ) - - - - (426 ) - Tax Effect of Unusual Expenses (55 ) (605 ) (64 ) (169 ) (82 ) (893 ) (81 ) Net Income Excluding Unusual Items $ 7,588 $ 6,426 $ 4,981 $ 5,060 $ 5,529 $ 24,055 $ 18,922 Weighted average diluted shares outstanding 14,555 14,525 14,551 14,549 14,327 14,484 13,426 Diluted Earnings Per Share $ 0.51 $ 0.30 $ 0.33 $ 0.31 $ 0.37 $ 1.44 $ 1.39 Adjusted Diluted Earnings Per Share Excluding Unusual Expenses $ 0.52 $ 0.44 $ 0.34 $ 0.35 $ 0.39 $ 1.66 $ 1.41 Gain on Loan Sales Margin(1) Gain on Sale of Loans $ 3,625 $ 3,592 $ 2,593 $ 2,537 $ 3,998 $ 12,347 $ 12,082 Loans Sold 92,258 110,820 82,140 68,720 98,545 353,939 316,409 Gain on Loan Sales Margin 3.93 % 3.24 % 3.16 % 3.69 % 4.06 % 3.49 % 3.82 % Guaranteed Loans as a Percent of Loans(3) SBA and USDA Guaranteed Loans $ 183,739 $ 193,688 $ 192,324 $ 204,239 $ 201,267 $ 183,739 $ 201,267 Loans, Net of Deferred Fees and Costs 959,269 940,591 871,630 843,365 815,958 959,269 815,958 Guaranteed Loans as a % of Loans 19.2 % 20.6 % 22.1 % 24.2 % 24.7 % 19.2 % 24.7 % Non-performing assets, excluding guaranteed, to total assets(3) Non-performing assets $ 37,396 $ 37,476 $ 18,373 $ 20,373 $ 14,168 $ 37,396 $ 14,168 Less: SBA and USDA guaranteed portions of non-performing assets 24,849 27,112 13,792 14,687 9,321 24,849 9,321 Non-performing assets, excluding guaranteed portions 12,547 10,364 4,581 5,686 4,847 12,547 4,847 Total assets 1,359,491 1,301,378 1,232,424 1,190,012 1,122,364 1,359,491 1,122,364 Non-performing assets, excluding guaranteed, to total assets 0.92 % 0.80 % 0.37 % 0.48 % 0.43 % 0.92 % 0.43 % Allowance for credit losses (ACL) to nonaccrual loans, excluding guaranteed(3) Nonaccrual loans $ 32,141 $ 34,608 $ 18,227 $ 19,220 $ 14,128 $ 32,141 $ 14,128 Less: SBA and USDA guaranteed portions of nonaccrual loans 24,849 27,111 13,792 13,859 9,321 24,849 9,321 Nonaccrual loans, excluding guaranteed portions 7,292 7,497 4,435 5,361 4,807 7,292 4,807 ACL to nonaccrual loans, excluding guaranteed 136 % 141 % 208 % 168 % 190 % 136 % 190 % ACL to loans, excluding guaranteed(3) Loans, net of deferred fees and costs $ 959,269 $ 940,591 $ 871,630 $ 843,365 $ 815,958 $ 959,269 $ 815,958 Less: SBA and USDA guaranteed portions of loans 183,739 193,688 192,324 204,239 201,267 183,739 201,267 Loans, excluding guaranteed 775,530 746,903 679,306 639,126 614,691 775,530 614,691 ACL to loans, excluding guaranteed 1.28 % 1.42 % 1.36 % 1.41 % 1.48 % 1.28 % 1.48 % Non-GAAP Financial Measures Footnotes
Author: GBank Financial Holdings Inc.
Published at: 2026-01-28 21:29:00
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