GBank earnings fell in the third quarter of 2026 as lower interchange fees and fewer loan sales offset an increase in net interest income. The Las Vegas-based bank holding company reported net income of $3.9 million, or $0.27 per diluted share, for the quarter ended September 30, down from $4.3 million, or $0.30 per share, a year earlier.

Key Takeaways

  • Net revenue fell to $20.3 million from $22.0 million in the second quarter.
  • Gaming-related credit card transaction volume declined after several large sports betting operators stopped accepting credit cards as a funding source.
  • GBank expects the effect of its legacy retail credit card portfolio on provision expense to diminish as the portfolio runs off.

GBank earnings and quarterly revenue

The third-quarter result also fell from the $5.5 million, or $0.38 per diluted share, recorded in GBank’s second-quarter 2026 results. Adjusted net income, which excludes non-core items, was $4.3 million, or $0.30 per diluted share, in the latest quarter, compared with $5.5 million, or $0.38 per share, in the second quarter.

The company said third-quarter non-core items totaled $0.6 million before tax, including $0.5 million in severance expense and $0.1 million in fraud losses. For the first nine months of 2026, net income was $10.6 million, compared with $13.5 million in the same period of 2025.

Net interest income rose to $13.6 million from $12.8 million in the second quarter, and the net interest margin improved to 3.95% from 3.78%. GBank attributed the increase in net interest income primarily to higher average loans and investments.

Lower fees offset loan growth

Non-interest income fell to $6.7 million from $9.1 million in the second quarter. GBank attributed most of the decline to a $1.5 million drop in net interchange fees and a $0.8 million reduction in gains on loan sales.

Gaming-related credit card transaction volume fell to $19.5 million from $84.2 million in the preceding quarter. Net interchange fee income declined to $0.3 million after several large sports betting operators discontinued credit cards as a funding source.

SBA loan originations rose to $171.7 million from $131.4 million in the second quarter. However, GBank sold fewer loans: $84.5 million, compared with $110.1 million in the prior quarter. Gains on those sales fell despite an improvement in the gain-on-sale margin.

Credit costs and management’s outlook

The provision for credit losses on loans was $2.6 million, down from $2.8 million in the second quarter. It included $687,000 related to the legacy non-gaming retail credit card portfolio, where GBank reported elevated delinquencies.

Non-performing assets totaled $54.2 million at September 30, down from $58.2 million at June 30 but above $37.5 million a year earlier. The company said the quarterly decline reflected lower nonaccrual loans, partly offset by an increase in other real estate owned.

CEO Jeff Newgard said the legacy card portfolio would continue to affect provision expense in the near term, but he expected that effect to diminish as the portfolio runs off. GBank also said it did not expect its broader gaming payments strategy to contribute materially to financial results in the near term.

Next milestone

GBank said it expected the majority of guaranteed loans held for sale, along with new originations, to be sold during the fourth quarter of 2026.

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