# GBank Financial Holdings Inc. (GBFH)

Informational only - not investment advice.

CIK: 0001791145
SIC: 6022 State Commercial Banks
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/)
Latest 10-K filed: 2026-03-30
SEC page: https://www.sec.gov/edgar/browse/?CIK=1791145
Filing source: https://www.sec.gov/Archives/edgar/data/1791145/000119312526129567/gbfh-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-30 · accession 0001193125-26-129567 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001791145.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,235,000,000 USD | 2025 | verified |
| Net income | 20,929,000 USD | 2025 | verified |
| Assets | 1,359,491,000 USD | 2025 | verified |
| Free cash flow | 9,143,000 USD | 2025 | computed |
| Net margin | 1.69% | 2025 | computed |
| ROE | 12.63% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | GBFH | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 1.7% | 21.9% | 4 | 149 |
| FCF margin | 0.7% | 23.8% | 5 | 133 |
| ROE | 12.6% | 9.6% | 82 | 149 |
| ROA | 1.5% | 1.1% | 88 | 149 |
| Liabilities / equity | 7.20 | 8.04 | 30 | 149 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6022 State Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1235000000 | USD | 2025 | 2026-03-30 |
| Net income | 20929000 | USD | 2025 | 2026-03-30 |
| Assets | 1359491000 | USD | 2025 | 2026-03-30 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001791145.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: |
| Revenue |  |  | 1,235,000,000 |
| Net income |  | 18,636,000 | 20,929,000 |
| Diluted EPS |  | 1.39 | 1.44 |
| Operating cash flow |  | 26,482,000 | 9,639,000 |
| Capital expenditures |  | 194,000 | 496,000 |
| Assets |  | 1,122,364,000 | 1,359,491,000 |
| Liabilities |  | 981,664,000 | 1,193,736,000 |
| Stockholders' equity | 98,427,000 | 140,700,000 | 165,755,000 |
| Free cash flow |  | 26,288,000 | 9,143,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: |
| Net margin |  |  | 1.69% |
| Return on equity |  | 13.25% | 12.63% |
| Return on assets |  | 1.66% | 1.54% |
| Liabilities / equity |  | 6.98 | 7.20 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001791145.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2025-Q1 | 2025-03-31 | 19,409,000 | 4,470,000 | 0.31 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 20,555,000 | 4,755,000 | 0.33 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 21,622,000 | 4,308,000 | 0.30 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 22,740,000 | 7,396,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 21,594,000 | 1,315,000 | 0.09 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 22,729,000 | 5,462,000 | 0.38 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from GBFH's latest 10-K: [/company/GBFH/business/](/company/GBFH/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from GBFH's latest 10-K: [/company/GBFH/risk-factors/](/company/GBFH/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1791145/000119312526349269/gbfh-20260630.htm

Extracted from a substantive MD&A body after the formal Item 2 span was a TOC or reference stub.
Confidence: high
Filing date: 2026-08-13
Report date: 2026-06-30

Results of Operations

Net Interest Income and Net Interest Margin

Net interest income is calculated as the excess of interest earned from the Company’s interest-bearing assets, such as loans and investments, and the interest expense incurred on interest-bearing liabilities, like deposits and borrowed funds. Net interest income represents the core earnings of the Company’s primary activities of lending and investing, less the costs of obtaining funds.

Net interest margin is expressed as net interest income as a percentage of average earning assets and reflects the Company's ability to generate income from its interest-earning assets relative to the costs of funding those assets. Net interest income is affected by changes in interest rates, as well as composition and volume fluctuations in the average balances of interest-earning assets and interest-bearing liabilities.

29

Average balances, interest income or expense, and the interest yield or rate for the Company’s interest-sensitive assets and liabilities are presented in the tables below for the three-month periods presented. Average balances are calculated on a daily basis. The Company had no tax equivalent adjustments for the three and six months ended June 30, 2026 and 2025.

[[GREPCENT_TABLE]]
[["","","For the Three Months Ended"],["","","June 30, 2026","","","June 30, 2025"],["","","Average","","","","","","Yield/","","","Average","","","","","","Yield/"],["(Dollars in thousands)","","Balance","","","Interest","","","Rate(2)","","","Balance","","","Interest","","","Rate(2)"],["ASSETS:"],["Interest Bearing Deposits With Banks","","$","134,527","","","$","1,296","","","","3.86","%","","$","115,974","","","$","1,365","","","","4.72","%"],["Investment Securities:"],["Taxable","","","114,526","","","","1,326","","","","4.64","%","","","119,880","","","","1,414","","","","4.73","%"],["Loans, Net (1)","","","1,102,289","","","","20,093","","","","7.31","%","","","911,028","","","","17,659","","","","7.77","%"],["Federal Home Loan Bank Stock","","","5,750","","","","14","","","","0.98","%","","","5,362","","","","117","","","","8.75","%"],["Total Earning Assets","","","1,357,092","","","","22,729","","","","6.72","%","","","1,152,244","","","","20,555","","","","7.16","%"],["Cash and Due From Banks","","","6,804","","","","","","","","","","6,782"],["Other Assets","","","67,682","","","","","","","","","","41,894"],["Total Assets","","","1,431,578","","","","","","","","","","1,200,920"],["LIABILITIES & STOCKHOLDERS' EQUITY:"],["Deposits:"],["Interest-bearing Demand","","$","69,922","","","","498","","","","2.86","%","","$","60,320","","","","316","","","","2.10","%"],["Money Market and Savings","","","339,718","","","","3,113","","","","3.68","%","","","303,814","","","","2,929","","","","3.87","%"],["Certificates of Deposit","","","579,583","","","","5,898","","","","4.08","%","","","413,940","","","","4,660","","","","4.52","%"],["Total Interest-Bearing Deposits","","","989,223","","","","9,509","","","","3.86","%","","","778,074","","","","7,905","","","","4.08","%"],["Short-Term Borrowings","","","-","","","","-","","","","0.00","%","","","-","","","","-","","","","0.00","%"],["Subordinated Debt","","","30,319","","","","419","","","","5.54","%","","","26,113","","","","262","","","","4.02","%"],["Total Interest-Bearing Liabilities","","","1,019,542","","","","9,928","","","","3.91","%","","","804,187","","","","8,167","","","","4.07","%"],["Noninterest-bearing Deposits","","","212,756","","","","","","","","","","223,201"],["Other Liabilities","","","25,914","","","","","","","","","","22,404"],["Stockholders' Equity","","","173,366","","","","","","","","","","151,128"],["Total Liabilities & Shareholders' Equity","","$","1,431,578","","","","","","","","","$","1,200,920"],["Net Interest Income","","","","","$","12,801","","","","","","","","","$","12,388"],["Total Yield on Earning Assets","","","","","","","","","6.72","%","","","","","","","","","7.16","%"],["Cost on Interest-Bearing Liabilities","","","","","","","","","3.91","%","","","","","","","","","4.07","%"],["Average Interest Spread","","","","","","","","","2.81","%","","","","","","","","","3.08","%"],["Net Interest Margin","","","","","","","","","3.78","%","","","","","","","","","4.31","%"]]
[[/GREPCENT_TABLE]]

(1)
For the three months ended June 30, 2026 and 2025, the average balance of loans, net includes average non-accrual loan balances of $47.0 million and $20.5 million, respectively.

(2)
Annualized on an actual/actual basis.

30

[[GREPCENT_TABLE]]
[["","","For the Six Months Ended"],["","","June 30, 2026","","","June 30, 2025"],["","","Average","","","","","","Yield/","","","Average","","","","","","Yield/"],["(Dollars in thousands)","","Balance","","","Interest","","","Rate(2)","","","Balance","","","Interest","","","Rate(2)"],["ASSETS:"],["Interest Bearing Deposits With Banks","","$","133,262","","","$","2,553","","","","3.86","%","","$","109,338","","","$","2,557","","","","4.72","%"],["Investment Securities:"],["Taxable","","","108,161","","","","2,428","","","","4.53","%","","","112,591","","","","2,695","","","","4.83","%"],["Loans, Net(1)","","","1,072,227","","","","39,051","","","","7.34","%","","","888,982","","","","34,495","","","","7.82","%"],["Federal Home Loan Bank Stock","","","5,632","","","","291","","","","10.42","%","","","5,009","","","","217","","","","8.74","%"],["Total Earning Assets","","","1,319,282","","","","44,323","","","","6.77","%","","","1,115,920","","","","39,964","","","","7.22","%"],["Cash and Due From Banks","","","6,497","","","","","","","","","","6,501"],["Other Assets","","","68,328","","","","","","","","","","40,543"],["Total Assets","","","1,394,107","","","","","","","","","","1,162,964"],["LIABILITIES & STOCKHOLDERS' EQUITY:"],["Deposits:"],["Interest-bearing Demand","","$","71,539","","","","1,019","","","","2.87","%","","$","62,992","","","","672","","","","2.15","%"],["Money Market and Savings","","","307,974","","","","5,658","","","","3.70","%","","","284,060","","","","5,340","","","","3.79","%"],["Certificates of Deposit","","","574,556","","","","11,725","","","","4.12","%","","","399,899","","","","9,123","","","","4.60","%"],["Total Interest-Bearing Deposits","","","954,069","","","","18,402","","","","3.89","%","","","746,951","","","","15,135","","","","4.09","%"],["Short-Term Borrowings","","","7","","","","-","","","","0.00","%","","","-","","","","-","","","","0.00","%"],["Subordinated Debentures","","","29,667","","","","929","","","","6.32","%","","","26,104","","","","547","","","","4.23","%"],["Total Interest-Bearing Liabilities","","","983,743","","","","19,331","","","","3.96","%","","","773,055","","","","15,682","","","","4.09","%"],["Noninterest-bearing Deposits","","","212,720","","","","","","","","","","221,050"],["Other Liabilities","","","25,508","","","","","","","","","","21,278"],["Stockholders' Equity","","","172,136","","","","","","","","","","147,581"],["Total Liabilities & Shareholders' Equity","","$","1,394,107","","","","","","","","","$","1,162,964"],["Net Interest Income","","","","","$","24,992","","","","","","","","","$","24,282"],["Total Yield on Earning Assets","","","","","","","","","6.77","%","","","","","","","","","7.22","%"],["Cost on Interest-Bearing Liabilities","","","","","","","","","3.96","%","","","","","","","","","4.09","%"],["Average Interest Spread","","","","","","","","","2.81","%","","","","","","","","","3.13","%"],["Net Interest Margin","","","","","","","","","3.82","%","","","","","","","","","4.39","%"]]
[[/GREPCENT_TABLE]]

(1)
For the six months ended June 30, 2026 and 2025, the average balance of loans, net includes average non-accrual loan balances of $41.9 million and $19.2 million, respectively.

(2)
Annualized on an actual/actual basis.

31

The following table presents the effects of changing rates and volumes on net interest income for the three-month periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated to volume.

[[GREPCENT_TABLE]]
[["","","Three Months Ended","","","Six Months Ended"],["","","June 30, 2026 vs. June 30, 2025","","","June 30, 2026 vs. June 30, 2025"],["","","Increase (Decrease)","","","Increase (Decrease)"],["(Dollars in thousands)","","Volume","","","Rate","","","Net","","","Volume","","","Rate","","","Net"],["INTEREST INCOME:"],["Interest Bearing Deposits With Banks","","$","218","","","$","(287",")","","$","(69",")","","$","559","","","$","(563",")","","$","(4",")"],["Investment Securities:"],["Taxable","","","(63",")","","","(25",")","","","(88",")","","","(106",")","","","(161",")","","","(267",")"],["Loans, Net","","","3,707","","","","(1,273",")","","","2,434","","","","7,110","","","","(2,554",")","","","4,556"],["Federal Home Loan Bank Stock","","","8","","","","(111",")","","","(103",")","","","27","","","","47","","","","74"],["Total Interest Income","","","3,870","","","","(1,696",")","","","2,174","","","","7,590","","","","(3,231",")","","","4,359"],["INTEREST EXPENSE:"],["Interest Bearing Deposits:"],["Interest-bearing Demand","","","50","","","","132","","","","182","","","","91","","","","256","","","","347"],["Money Market and Savings","","","346","","","","(162",")","","","184","","","","450","","","","(132",")","","","318"],["Certificates of Deposit","","","1,865","","","","(627",")","","","1,238","","","","3,984","","","","(1,382",")","","","2,602"],["Total Interest-Bearing Deposits","","","2,261","","","","(657",")","","","1,604","","","","4,525","","","","(1,258",")","","","3,267"],["Short-Term Borrowings","","","-","","","","-","","","","-","","","","-","","","","-","","","","-"],["Subordinated Debt","","","42","","","","115","","","","157","","","","75","","","","309","","","","384"],["Total Interest Expense","","","2,303","","","","(542",")","","","1,761","","","","4,600","","","","(949",")","","","3,651"],["NET INTEREST INCOME","","$","1,567","","","$","(1,154",")","","$","413","","","$","2,990","","","$","(2,282",")","","$","708"]]
[[/GREPCENT_TABLE]]

For the six months ended June 30, 2026, interest income was $44.3 million, an increase of $4.4 million compared to $40.0 million for the six months ended June 30, 2025. For the three months ended June 30, 2026, interest income was $22.7 million, an increase of $2.2 million compared to $20.6 million for the three months ended June 30, 2025. The increases in interest income when comparing the three and six-month periods ended June 30, 2026 to the same periods in 2025 is primarily due to increases in average interest-earning assets, partially offset by yield reductions on adjustable-rate loans, securities, and other liquid assets as a result of the cumulative 75 basis point reduction in the target federal funds rate on the Company’s variable-rate loan portfolio over the preceding twelve months.

Interest expense was $19.3 million for the six months ended June 30, 2026, an increase of $3.6 million compared to $15.7 million for the six months ended June 30, 2025. Interest expense was $9.9 million for the three months ended June 30, 2026, an increase of $1.8 million when compared to $8.2 million for the three months ended June 30, 2025. The increase in interest expense when comparing the three and six months ended June 30, 2026 to the same periods in 2025 was driven by increases in average interest-bearing liabilities to fund asset growth.

For the six months ended June 30, 2026, the Company's net interest margin decreased to 3.82% compared to 4.39% for the same period in 2025. For the second quarter of 2026, the Company's net interest margin decreased to 3.78

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1791145/000119312526129567/gbfh-20251231.htm
Complete FY 2025 MD&A: /company/GBFH/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-30
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Introduction

The objective of this section is to provide an overview of our results of operations and financial condition by focusing on changes in certain key measures from year to year. It should be read in conjunction with our consolidated financial statements and the related Notes thereto (our “Consolidated Financial Statements”) and other financial data presented elsewhere in this Annual Report on Form 10-K, particularly the information regarding our business operations described in Item 1. A detailed discussion comparing 2024 and 2023 results is incorporated herein by reference to our Company’s Registration Statement on Form S-1/A filed with the SEC on April 1, 2025.

Executive Summary

We generate the majority of our revenue through net interest income, calculated as the difference between interest earned on loans and investments and interest paid on deposits and borrowings. Growth in net interest income is dependent upon balance sheet growth and maintaining or increasing our net interest margin, which is calculated as net interest income as a percentage of average interest-earning assets. We also generate non-interest income through fees earned on the various services and products offered to our customers, net interchange fees earned on credit card transaction volume, and through gains on sales of the guaranteed portion of SBA and USDA loans. Offsetting these revenue sources are provisions for credit losses, non-interest expenses, and income taxes.

The following table presents a summary of our earnings and selected performance ratios:

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["(Dollars in thousands, except per share data)","2025","","","2024"],["Net Income","$","20,929","","","$","18,636"],["Diluted Earnings Per Share","$","1.44","","","$","1.39"],["Return on Average Assets","","1.70","%","","","1.85","%"],["Return on Average Equity","","13.61","%","","","16.14","%"],["Net Interest Margin","","4.33","%","","","4.79","%"],["Non-Performing Assets to Total Assets","","2.75","%","","","1.26","%"],["Net Charge-Off (Recoveries) to Average Loans","","0.33","%","","","0.02","%"]]
[[/GREPCENT_TABLE]]

For the years ended December 31, 2025 and 2024, we experienced strong balance sheet growth, primarily driven by increases in loans, cash equivalents and interest-bearing deposits. We experienced favorable volume-driven increases in net interest income as well as a 56% increase in noninterest income driven by a significant increase in credit card net interchange fees.

Financial highlights for the year ended December 31, 2025 are presented below:

[[GREPCENT_TABLE]]
[["","\u00b7","Net income of $20.9 million and diluted earnings per share of $1.44"],["","\u00b7","Net interest margin of 4.33%"],["","\u00b7","Loan growth of $143.3 million, or 18% year over year"],["","\u00b7","Credit card transaction volume of $420.5 million and net interchange fees of $7.8 million, compared to $73.8 million and $1.4 million, respectively, for the year ended December 31, 2024"],["","\u00b7","Principal balances of loans sold of $353.9 million, an increase of $37.5 million, or 12%, compared to principal balances of loans sold of $316.4 million during the year ended December 31, 2024"],["","\u00b7","Gain on sale of loans of $12.3 million, an increase of $265 thousand, or 2%, compared to $12.1 million of gain on sale of loans for the year ended December 31, 2024"],["","\u00b7","Guaranteed loans, including loans held for sale and loans held for investment, totaled $229.7 million as of December 31, 2025, compared to $233.9 million as of December 31, 2024"],["","\u00b7","Non-performing assets of $37.4 million as of December 31, 2025, representing 2.75% of total assets, compared to $14.2 million of non-performing assets as of December 31, 2024"]]
[[/GREPCENT_TABLE]]

34

Business Strategy

Our primary business strategy is to be a forward-thinking provider of tailored financial solutions designed to create opportunities and meet the needs of our customers and communities while creating lasting value for our stockholders through the operation of a successful, people-focused institution. We believe that we are able to differentiate ourselves from our competitors by striving to provide a banking experience that focuses on personalized service, priority service, availability, and innovative solutions. Highlights of our current business strategy include:

[[GREPCENT_TABLE]]
[["","\u00b7","Continued focus on growth and enhancement of government guaranteed lending. Historically, our primary lending focus has been the origination of commercial real estate loans partially guaranteed by the U.S. Small Business Administration. We intend to continue to expand this portfolio of loans by hiring and developing experienced lending personnel to increase our presence not only within our market area, but also nation-wide, while maintaining a high level of asset quality through the utilization of conservative underwriting standards."],["","\u00b7","Targeted expansion of our Gaming FinTech relationships. The Bank, in partnership with BankCard Services, LLC (\u201cBCS\u201d), will continue to identify and develop tools and resources necessary to scale and innovate within the payments industry."],["","\u00b7","Maintaining a strong emphasis on the continued development of our Credit Card portfolio. The Bank will continue to market its GBank Visa Signature \u00ae card throughout the local market area and nationwide through marketing referral agreements and other strategic partnerships."],["","\u00b7","Increase core deposits with an emphasis on non-interest bearing deposits. As the main source of funding for lending and investment, we are committed to increasing low-cost deposits while minimizing reliance on higher-cost certificates of deposit to facilitate margin expansion. We are dedicated to growing core deposits by utilizing our business development officers and fostering our commercial lending and retail relationships."],["","\u00b7","Recruiting, retaining, and investing in top talent and personnel. During the periods presented, our Company has appointed a General Counsel to the Executive Management Team to support and facilitate our growth. Given our strong capital levels and expansion strategy, we believe that we have the ability to continue to opportunistically hire talented individuals and develop top performers to facilitate our future success."]]
[[/GREPCENT_TABLE]]

Critical Accounting Policies

In preparing our Consolidated Financial Statements, accounting policies are applied that require significant judgment and estimates, which can materially impact our results of operations and financial position. The following are the critical accounting policies that have the most significant impact on our financial statements because they require significant judgments and assumptions about highly complex and inherently uncertain matters. The use of reasonably different estimates and assumptions could have a material impact on our results of operations or financial condition.

For further information about our accounting policies, see “Note 2. Summary of Significant Accounting Policies” in the Notes to our Consolidated Financial Statements appearing elsewhere in this Annual Report on Form 10-K.

Allowance for Credit Losses

The allowance for credit losses reflects management’s best estimate of credit losses over the remaining life of the loan portfolio, and is presented as a valuation account deducted from the loan portfolio’s amortized cost basis to present the net amount expected to be collected on the loans.

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Bank has segregated its held-for-investment loan portfolio into segments based on federal call report codes which classify loans based on the primary collateral supporting the loan. The segments are reviewed by management at least annually to ensure instruments are properly segregated into groups having similar risk characteristics, and new segments may be required as the Bank offers new loan products.

The Bank’s loan portfolio includes certain loans which are partially guaranteed by the U.S. Small Business Administration. The Current Expected Credit Losses model does not require an entity to measure expected credit losses on an instrument, or pool of instruments, if historical information adjusted for current conditions and reasonable and supportable forecasts result in zero expected credit losses in all scenarios. The guaranteed portion of the loan pools range from 75% to 90%. For purposes of the assessment of credit losses, management has determined that the guaranteed portions of these loans have nearly zero repayment risk due to such portions being fully guaranteed by the U.S. government.

35

Methodology and Key Inputs

We estimate expected credit losses using the average charge-off method, which combines quantitative modeling with qualitative adjustments. The quantitative component incorporates historical loss experience, current asset-level characteristics, and reasonable and supportable forecasts of future economic conditions. Key model inputs include historical loss data, current portfolio characteristics, qualitative factors, forward-looking expectations, and reversion assumptions.

A critical input to the estimate is our forecast of macroeconomic variables, which may include, among others, national unemployment rates, gross domestic product changes, interest rates, and other relevant indicators. Assumptions related to these inputs are developed using a combination of internal analyses and external sources. We apply a reasonable and supportable forecast period, after which loss estimates revert to historical averages over a defined reversion period.

Forecast Assumptions

Forecast assumptions are updated periodically and reflect management’s view of the most likely economic scenario as of the reporting date. Given the inherent uncertainty in economic forecasting, actual results may differ from these estimates. We may also consider alternative scenarios and apply probability weightings when deemed appropriate. The sensitivity of the allowance to changes in economic forecasts is evaluated periodically.

Prepayment Speeds and Behavioral Assumptions

Expected credit losses are also influenced by assumptions regarding borrower prepayment behavior, which affects the estimated life of the assets. Prepayment speeds are estimated based on historical experience, current market conditions, interest rate expectations, and borrower characteristics. Faster prepayment speeds generally reduce the expected life of assets and, consequently, the exposure to credit losses, while slower prepayments extend the exposure period and may increase the allowance.

In addition to prepayment assumptions, we consider other behavioral factors, such as utilization rates for revolving products and curtailment activity, which can affect exposure at default.

Qualitative Adjustments

Management applies qualitative adjustments to the modeled results to account for factors not fully captured in the quantitative framework. These may include changes in underwriting standards, portfolio composition, concentrations of credit risk, regulatory or legal developments, and other environmental factors. The determination of qualitative adjustments requires significant judgment.

Uncertainty and Sensitivity

Due to the use of significant estimates and assumptions, the allowance for credit losses is sensitive to changes in economic conditions and other key inputs. A deterioration in forecasted economic conditions, slower prepayment speeds, or adverse changes in borrower performance could result in an increase in the allowance, while improvements in these factors could lead to a reduction. Management regularly reviews and updates its

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/GBFH/mda/fy2025/
All MD&A years: /company/GBFH/mda/






## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6022 State Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/GBFH.md · JSON record: /company/GBFH.json · verified financials: /company/GBFH/financials.json / /company/GBFH/financials.csv · machine TOC for the whole site: /llms.txt