GBank Financial Holdings Inc. (“GBank” or the “Company”) , the parent company for Bank of George (the “Bank”), reported year-to-date earnings of $11 million, or $0.85 per diluted share. This represents a year-over-year increase of 57% compared to $7 million or $0.56 per diluted share for the year-to-date period ending December 31, 2020. Earnings for the fourth quarter increased 50% to $4.0 million, or $0.31 per diluted share, compared to $2.6 million, or $0.21 per diluted share, for the third quarter of 2021. Earnings were highlighted by the record gains on loan sales for both the quarter and year-to-date periods. Year-to-date gain on sales income increased to $17.1 million from $9.9 million in 2020, representing a 73% year-over-year increase. Quarterly gain on sales income increased to $5.9 million in Q4 2021 from $3.9 million in Q3 2021.
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Fourth Quarter Financial Highlights (for the year-over-year and quarterly periods ending December 31, 2021)
Year-over-year comparisons:
- Year-to-date net income increased 57% to $11.0 million, compared to $7.0 million for the same period in 2020.
- Year-to-date earnings per diluted share were $0.85, compared to $0.56 for the same period in 2020.
- Allowance for loan losses was $6.2 million, compared to $5.1 million at year-end 2020.
- Year-to-date net revenues (net interest income plus noninterest income) increased 36% to $36.9 million, compared to $27.2 million for 2020.
- Noninterest income increased 60% to $19.3 million, compared to $12.0 million for 2020.
- Total assets increased 31% to $618.1 million, compared to $470.6 million as of year-end 2020.
- Total deposits increased 31% to $509.6 million, compared to $389.3 million as of year-end 2020.
- Book value was $6.19 per share, compared to $5.30 per share as of year-end 2020.
Linked quarter comparisons:
- Net income increased 50% to $4.0 million, compared to $2.6 million for Q3 2021.
- Earnings per diluted share were $0.31, compared to $0.21 for Q3 2021.
- Return on average assets was 2.72% compared to 1.91% for Q3 2021.
- Return on average equity was 21.46%, compared to 14.96% for Q3 2021.
- Allowance for loan losses was $6.2 million, compared to $5.9 million at September 30, 2021.
- Net interest margin was 3.59%, compared to 3.33% for Q3 2021.
- Total net revenues (net interest income plus noninterest income) increased 26% to $11.4 million, compared to $9.0 million for Q3 2021.
- Noninterest income increased 42% to $6.4 million, compared to $4.5 million for Q3 2021.
- Total assets increased 12% to $618.1 million, compared to $551.2 million at September 30, 2021.
- Total deposits increased 9% to $509.6 million, compared to $467.3 million at September 30, 2021.
- Book value was $6.19 per share, compared to $5.88 per share at September 30, 2021.
Edward M. Nigro, GBank Executive Chairman, stated, “Our 2021 performance reflects the strength of our strategic business plan that we embarked upon in 2015 – revenue and income growth with a balanced focus on Net Interest and Noninterest Income. With the advent of our SBA Division, and also our FinTech technology partnering with Sightline Interactive, LLC to enable banking solutions for cashless gaming, all areas of the Company are contributing to our earnings and balance sheet growth.”
Covid-19 Response
The Company continues to administer several pandemic programs to assist its clients with their financial needs and remains committed to helping its clients who have been affected by the declining economic activity or other challenges related to the pandemic.
Beginning in March 2020, and with 100% of loan portfolios performing as agreed, the Bank was able to implement the Bank of George Business Relief Plan. This bold initiative utilized the Company’s sizable financial strength to support all the Bank’s communities and clients. Under this plan, the Bank offered all its borrowers optional three and six-month payment deferrals for full principal and interest. As the payment deferral status ended, borrowers resumed making their scheduled payments and were no longer considered as being in an active deferral status. At December 31, 2021, the Bank had one loan relationship of approximately $774 thousand on deferral under this program.
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Paycheck Protection Program
As a U.S. Small Business Administration (“SBA”) PLP lender, the Bank has also been able to play a critical role in offering loans through the SBA Paycheck Protection Program (“PPP”). During the life of the program, the Bank funded approximately $85 million in PPP loans.These vital funds supported keeping nearly 7,000 employees on the payroll. PPP Loans at December 31, 2021 were approximately $11 million.
SBA
“The Company’s SBA Division continues to break all records and was a key growth driver for our incredible 2021 performance,” stated T. Ryan Sullivan, President/CEO.
For the SBA fiscal year ending September 30, 2021, the Bank secured a total of approximately $292 million in SBA 7(a) loan approvals, excluding Paycheck Protection Program (“PPP”) loans. This placed the Bank as 19th for all SBA 7(a) lenders in the nation.
During the 2021 year, the Bank’s SBA Division closed on approximately $274 million in total loans originated, excluding PPP loans. 2021 loan production increased 40.5% from the total loan originations of approximately $195 million during 2020.
A key provision of the CARES Act was the SBA Debt Relief Program, whereby the SBA made six months of principal and interest payments on qualifying existing and new SBA loans. This has been an incredibly powerful resource for SBA borrowers and, with all of the Bank’s SBA 7(a) loans in regular payment status at the onset of the program, most of the Bank’s SBA borrowers were able to benefit from this program. At December 31, 2021, one of the Bank’s loans of approximately $472 thousand was receiving support under this program. Additionally, under the Economic Aid Act, continuing SBA payment support of up to $9,000 per month has been provided for a significant portion of the Bank’s SBA 7(a) loan portfolio with approximately $16.9 million in loans receiving support under this program at December 31, 2021.
Gaming FinTech
Total Gaming FinTech accounts grew to approximately 570 thousand at December 31, 2021. This represents an increase of 36% from the 419 thousand accounts held at December 31, 2020. The Bank has experienced a corresponding increase in payment load volumes of 54% during 2021 to approximately $750 million, compared to $486 million during 2020. This has driven Gaming FinTech revenues up 39% to $440 thousand in 2021, compared to $316 thousand for the prior year.
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