Gbank Financial Holdings Inc. · NASDAQ:GBFH
Gbank Financial — Investor Presentation (October 2024)
24 slides from Gbank Financial's investor presentation, Oct 22, 2024
Slide 1: Private Placement of Common Stock
S e p t e m b e r 2 0 2 4 Private Placement of Common Stock 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This confidential presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, some of which can be identified by the use of words such as “
Slide 3: GBank Financial Holdings Inc. Financial Highlights
GBank Financial Holdings Inc. Financial Highlights Industry-Leading Growth (3 months ended 6/30/24) (6/30/23 – 6/30/24) s $1.0B 77% ip SBA (2) h Lending ns io lat Total assets Total loans Re So lut ion 4.82% 52% s Gaming Commercial FinTech Banking Net interest margin Total deposits 1.98% 101% Core R
Slide 4: Key Differentiators
Key Consistent Profitability GBFH has consistently demonstrated best-in-class profitability with core return on average assets Differentiators between 1.53% and 2.04% since 2017 Leading National SBA Business & Regional Commercial Banking Franchise GBFH is a top originator of SBA 7a credits and the l
Slide 5: GBank Financial Holdings Inc. Directors
GBank Financial Holdings Inc. Directors A. Lee Finley Director Founder, BrandFX Body Company Charles W. Griege, Jr. Director Managing Partner, Blue Lion Capital William J. Hornbuckle IV Director CEO and President, MGM Resorts International Katie S. Lever Todd A. Nigro James K. Sims Director Director
Slide 6: GBank Directors
GBank Directors Dana A. Dwiggins Powell Timothy P. Herbst Shelli L. Lowe Director Director Director Managing Partner, Solomon, President, Terrible Herbst Inc. (Retired) Former Director of Dwiggins and Freer, Ltd. Client Services, Integra Realty Resources - Nevada Edward M. Nigro Executive Chairman T
Slide 7: Experienced and Invested Leadership Team
Experienced and Invested Leadership Team EDWARD M. NIGRO Executive Chairman T. RYAN SULLIVAN President / CEO JEFFERY E. WHICKER EVP / Chief Financial Officer TARA A. CAMPBELL NANCY M. DECOU DAVID J. FERSDAHL EVP / Chief Operating Officer EVP / Chief SBA Officer EVP / Cards and Payments KEITH F. JARV
Slide 8: Company and Financial Snapshot
Company and Financial Snapshot • CB Resource, Inc. recently recognized GBank as #20 out of 539 banks in its size peer group for its Q1 2024 financial performance • For the second consecutive year, OTCQX ranked GBFH in its 2024 OTCQX Best 50 based on prior year total return and average daily dollar v
Slide 9: Timeline and Notable Events
Timeline and Notable Events Total Assets Over Time ($M) March 2020 December 2021 December 2023 June 2024 $18.5M Private $20.0M Announced proposed $3.3M investment Placement of Subordinated Notes acquisition of Bankcard in BCS for 32.99% Common Stock Issuance Services, LLC non-controlling December 20
Slide 10: Compelling Balance Sheet Growth
Compelling Balance Sheet Growth TOTAL ASSETS ($M) TOTAL LOANS ($M) $1,009 $813 $918 $684 $679 $620 $471 $405 $356 $344 $305 $238 $230 $159 $208 $169 $122 $130 2016 2017 2018 2019 2020 2021 2022 2023 Q2'24 2016 2017 2018 2019 2020 2021 2022 2023 Q2'24 TOTAL DEPOSITS ($M) TOTAL EQUITY ($M) $111 $840 $
Slide 11: Financial Performance Trends
Financial Performance Trends NET INTEREST MARGIN – BANK CORE ROAA 5.69% 5.02% 5.21% 4.83% 4.94% 4.90% 2.04% 1.98% 1.88% 1.96% 1.88% 4.36% 4.26% 1.74% 1.77% 4.03% 1.58% 1.53% 1.58% 3.40% 2016 2017 2018 2019 2020 2021 2022 2023 Q1'24 Q2'24 2016 2017 2018 2019 2020 2021 2022 2023 Q1'24 Q2'24 TANGIBLE B
Slide 12: Gaming FinTech Overview
Gaming FinTech Overview ACTIVITY TRENDS (000S) DEPOSITS ($M) ACTIVE ACCOUNTS (000S) PPA CLIENTS $43.7 $45.4 535 14 14 $32.9 419 (1) 377 $27.8 (1) 8 255 $17.8 205 170 4 2 2 $2.2 $2.4 32 1 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 INTEGRAL
Slide 13: How GBank Manages Risk
How GBank Manages Risk Recent disruption amongst banks providing services to FinTech partners creates significant opportunities for growth Product Design Third-Party Risk Custody Bank Secrecy Act / • Prepaid Access Accounts Management • Bank has full custody of Anti- Money service customers that • C
Slide 14: SBA Lending Overview
SBA Lending Overview OVERVIEW GUARANTEED LOANS ($000’S AND % OF GROSS LOANS) • GBank offers SBA and USDA guaranteed loans nationwide $300,000 40.0% 33.4% • GBank is recognized as one of the most active SBA lenders in the country $250,000 30.0% 31.0% 35.0% $259,467 $252,152 30.0% − #22 SBA 7(a) – FYE
Slide 15: SBA Lending - Hotel Portfolio Summary
SBA Lending - Hotel Portfolio Summary DIVERSIFIED ACCOMMODATION PORTFOLIO • GBank has been a top national SBA 7(a) hotel / motel lender for each of the past four years. GBank maintains strong national relationships and has established itself as the premier government guaranteed lender within the ind
Slide 16: Loan Portfolio Summary
Loan Portfolio LOAN PORTFOLIO Summary 13% 0.07% 2% 6% Balance ~31% $813M government Q2 2024 yield 10% guaranteed on loans: OVERVIEW 8.33% • Top 10 relationships represent ~$117 million 68% or ~14.4% of total loans as of June 30, 2024 Hotel CRE ($556M) Other non-owner occupied CRE and multifamily ($8
Slide 17: Servicing Portfolio
Servicing Portfolio SBA Loan Servicing SBA LOANS SERVICED AND INCOME ($000) $2,136 • GBank services the guaranteed portion of SBA and USDA loans $790,000 $2,000 sold to others $740,000 $1,295 • $663.9 million in loans serviced for others $1,500 $690,000 $1,081 – 2.0% servicing fee for USDA loans $67
Slide 18: Asset Quality Trends
Asset Quality Trends OVERVIEW NCOs / AVERAGE LOANS • Prudent risk management philosophy with a disciplined approach 0.33% (1) to credit underwriting • Less than $1M in annual charge-offs every year since 2020 (2) 0.17% 0.17% • ACL / total loans net of government guarantees was 1.31% as of June 30, 2
Slide 19: Attractive Low-cost Core Deposit Base
Attractive Low-cost Core Deposit Base DEPOSIT COMPOSITION OVERVIEW 7.75% • Strong deposit base with “sticky” funding – core deposits of $703.4 million, which represents 84% of total deposits(1) 28.63% Interest bearing demand • Stable cost of funding of 3.33% YTD Non-interest bearing checking 26.23%
Slide 20: 2Q24 Operating Results & Outlook
2Q24 Operating Results & Outlook 2Q24 Highlights 2024 / 2025 Outlook • Net income: $4.7M (up 104% YoY) • Continued strong SBA origination growth, currently on pace for over $100 million per quarter • YTD net income: $8.4M (up 49% YoY) − Currently selling 80% to 90% of originations into the • Net int
Slide 21: Investment Highlights
Investment Highlights Outstanding profitability and financial performance Experienced and invested board and management (46% ownership) Commercial banking and national SBA lines High growth FinTech and payment opportunities Strong credit culture and pristine asset quality Robust capital and liquidit
Slide 22: Appendix
SECTION GBank Financial Holdings Inc. Appendix
Slide 23: Financial Highlights
Financial Highlights GBank Financial Holdings Inc. 2017 2018 2019 2020 2021 2022 2023 Q2 2024 YTD Total Assets ($M) 208.4 238.4 344.3 470.6 620.3 678.7 918.4 1,009.4 Gross Loans ($M) 130.2 168.7 229.9 305.3 356.2 405.4 683.7 813.3 Loan Loss Reserve ($M) 1.9 2.3 3.1 5.1 6.2 6.9 7.1 7.3 Balance Total
Slide 24: Thank You!
GBank Financial Holdings Inc.
GBank Financial Holdings — Investor Presentation (October 2024) on 6ix