The $3.3 million increase in non-interest income during the third quarter of 2025 when compared to the third quarter of 2024 was driven by favorable increases across all categories of other income, including (i) an increase in credit card net interchange fees of $2.1 million as credit card transaction volume increased from $22 million during the nine months ended September 30, 2024 to $321 million for the same period in 2025, (ii) an increase in gain on sale of loans of $754 thousand , and (iii) a $196 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 $ 12,998 $ 12,388 $ 11,894 $ 11,789 $ 12,259 $ 37,280 $ 34,410 Non-Interest Income 7,177 5,384 5,463 5,764 3,902 18,023 10,474 Net Revenue $ 20,175 $ 17,772 $ 17,357 $ 17,553 $ 16,161 $ 55,303 $ 44,884 Adjusted Diluted Earnings Per Share Excluding Unusual Expenses(2) Net Income $ 4,308 $ 4,755 $ 4,470 $ 5,244 $ 5,015 $ 13,533 $ 13,392 Unusual Expenses: Form S-1 and Uplist Costs 30 290 759 367 - 1,079 - CEO Resignation 900 - - - - 900 - Costs Incurred Related to Discontinued Credit Card Marketing Campaign 1,692 - - - - 1,692 - Tax Effect of Unusual Expenses (597 ) (66 ) (173 ) (83 ) - (835 ) - Net Income Excluding Unusual Expenses $ 6,333 $ 4,979 $ 5,056 $ 5,528 $ 5,015 $ 16,369 $ 13,392 Weighted average diluted shares outstanding 14,525 14,551 14,549 14,327 13,236 14,510 13,075 Diluted Earnings Per Share $ 0.30 $ 0.33 $ 0.31 $ 0.37 $ 0.38 $ 0.93 $ 1.02 Adjusted Diluted Earnings Per Share Excluding Unusual Expenses $ 0.44 $ 0.34 $ 0.35 $ 0.39 $ 0.38 $ 1.13 $ 1.02 Gain on Loan Sales Margin(1) Gain on Sale of Loans $ 3,592 $ 2,593 $ 2,537 $ 3,998 $ 2,838 $ 8,722 $ 8,084 Loans Sold 110,820 82,140 68,720 98,545 71,386 261,680 217,864 Gain on Loan Sales Margin 3.24 % 3.16 % 3.69 % 4.06 % 3.98 % 3.33 % 3.71 % Guaranteed Loans as a Percent of Loans(3) SBA and USDA Guaranteed Loans $ 193,688 $ 192,324 $ 204,239 $ 201,267 $ 203,027 $ 193,688 $ 203,027 Loans, Net of Deferred Fees and Costs 940,591 871,630 843,365 815,958 780,999 940,591 780,999 Guaranteed Loans as a % of Loans 20.6 % 22.1 % 24.2 % 24.7 % 26.0 % 20.6 % 26.0 % Non-performing assets, excluding guaranteed, to total assets(3) Non-performing assets $ 37,476 $ 18,373 $ 20,373 $ 14,168 $ 5,408 $ 37,476 $ 5,408 Less: SBA and USDA guaranteed portions of non-performing assets 27,112 13,792 14,687 9,321 3,838 27,112 3,838 Non-performing assets, excluding guaranteed portions 10,364 4,581 5,686 4,847 1,570 10,364 1,570 Total assets 1,301,378 1,232,424 1,190,012 1,122,364 1,048,002 1,301,378 1,048,002 Non-performing assets, excluding guaranteed, to total assets 0.80 % 0.37 % 0.48 % 0.43 % 0.15 % 0.80 % 0.15 % Allowance for credit losses (ACL) to nonaccrual loans, excluding guaranteed(3) Nonaccrual loans $ 34,608 $ 18,227 $ 19,220 $ 14,128 $ 5,381 $ 34,608 $ 5,381 Less: SBA and USDA guaranteed portions of nonaccrual loans 27,111 13,792 13,859 9,321 3,838 27,111 3,838 Nonaccrual loans, excluding guaranteed portions 7,497 4,435 5,361 4,807 1,543 7,497 1,543 ACL to nonaccrual loans, excluding guaranteed 141 % 208 % 168 % 190 % 514 % 141 % 514 % ACL to loans, excluding guaranteed(3) Loans, net of deferred fees and costs $ 940,591 $ 871,630 $ 843,365 $ 815,958 $ 780,999 $ 940,591 $ 780,999 Less: SBA and USDA guaranteed portions of loans 193,688 192,324 204,239 201,267 203,027 193,688 203,027 Loans, excluding guaranteed 746,903 679,306 639,126 614,691 577,972 746,903 577,972 ACL to loans, excluding guaranteed 1.42 % 1.36 % 1.41 % 1.48 % 1.37 % 1.42 % 1.37 % Non-GAAP Financial Measures Footnotes (1) We believe this non-GAAP measurement presents trends in income generation of the Company.
Author: GBank Financial Holdings Inc.
Published at: 2025-10-28 23:38:00
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