Gbank Finl Hldgs Inc

The related Q3 earnings press release was filed with the U.S. Securities and Exchange Commission on Tuesday, October 28, 2025, and is available on the news and media section of our website, gbankfinancialholdings.com. Before we begin, I'd like to remind everyone that any forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated future results. Please see our safe harbor statements in our earnings press release. All comments expressed or implied made during today's call are subject to the safe harbor statements. Any forward-looking statements made during this call are made only as of today's date, and we do not undertake any duty to update such forward-looking statements except as required by law. Additionally, during today's call, we may discuss certain non-GAAP financial measures, which we believe are useful in evaluating our performance. A reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures can also be found in our earnings release. I'll now turn the call over to Edward M. Nigro, our Chairman and Chief Executive Officer.

Well, good morning. I'm Ed Nigro, Chairman and Chief Executive Officer of G-Bank Financial Holdings and G-Bank. And I'd like to welcome all of you, our shareholders, our employees, guests, to our quarterly third quarter earnings call for G-Bank Financial Holdings. And here today, Jeff is going to, Jeff Wicker, who is our Chief Financial Officer, and I will be giving you our verbal presentation. And I wanted to advise you that we changed the format quite a bit for this particular call. Jeff's going to go through some salient numbers how they were developed, why they occurred the way they did in a more brief assessment, rather than going through and repeating the earnings per share and everything that you've seen. But we will also have questions on Jeff's comments later. Then I will then take over from Jeff and talk about expenses that we have. But so right now, I'd like to turn it over to Jeff to discuss some of the more salient numbers that you have before you.

Jeff. Thank you, Ed. Welcome, everyone. The company reported quarterly earnings of $4.3 million or $0.30 per diluted share. That's a decrease of $500,000 compared to the prior quarter earnings of $4.8 million. Now included in these quarterly results are approximately 2 million or 14 cents per share in unusual operating expenses. There were four main items that are unusual in nature that explain the quarter-over-quarter increase in non-interest expense and would not be expected in core earnings going forward. These include $900,000 for the resolution of the contract related to the departure of the prior chief executive officer, $728,000 related to the spent on the direct mail marketing campaign that provides a cash back bonus for upfront spend on cards. $258,000 related to a DDOS The goal is to disrupt normal operations, stretch current resources, and create vulnerabilities. And finally, $707,000 related to an attempt to create revolving balance accounts through direct mail campaigns, which were targeted by bad actors who were able to bypass the current detection systems and create accounts that went directly to charge on. This type of marketing has been discontinued, and a more targeted marketing campaign has been developed In response to these findings, the bank has executed several new processes to identify fraud activity and help reduce any impact in the future. These include the following, adoption of the Experian bust-out score, which looks to identify, detect, and prevent bust-out cardholders, which is a form of first-party fraud where individuals build a strong credit profile and then intentionally default on multiple accounts. which is a comprehensive digital identity management platform, PreciseID, which is a comprehensive identity verification and fraud detection platform designed to help authenticate identities, detect fraud, and comply with regulations, and Plaid Identification Verification, which verifies the identity of the applicant by comparing the applicant's ID to a live picture taken by the applicant. Additionally, the bank has implemented a two to four-day hold on ACH payments to prevent customers from running up credit card balances and paying down with unavailable funds. The bank is also in the process of implementing two-way SMS, allowing for cardholders to verify potential fraudulent activities in real time. With the addition of the new application system and additional processes, we believe that the bank's fraud detection systems are now state-of-the-art and will act to ensure This quarter, the bank did experience some significant highlights on the financials, and I would like to point those out. The most important is net revenue growth. The bank delivered solid operating leverage this quarter, with net revenue growing 13.5% to $20.2 million. This high level of growth in revenue quarter over quarter demonstrates how impactful the digital banking programs can be to our earnings going forward. Interest income in the quarter. On balance sheet guaranteed loan balances increased $22.9 million for the quarter to $260.5 million. Net interchange income was up 56.7% over the prior quarter as credit card transaction volume started to rebound with total transaction volume hitting $131 million, which was a 57% increase over the prior quarter. The company has recently launched the new online credit card application drive up future volumes. The gain on sale revenue increased 38.5% over the linked quarter. SBA and commercial lending have continued their banner gear with record loan production in the quarter of 242 million, which is up 82 million over the prior quarter. The GAAP gain on sale pricing increased by 15 basis points in the quarter to 3.24% compared to 3.09% in the linked quarter, with an 84 basis point increase in the month of September as pricing started to rebound and the bank implemented some cost containment measures to improve profitability. In addition, the bank has restructured the current incentive payment structure. The prior structure was built to enhance volume. However, this did not promote originating loans that would lead to a strong net income for the bank. The structure is now in place to align the originators with the interest of the organization and ensure that the bank receives a minimum 4% gap gain on sale going forward. As these measures take effect, we anticipate this income will continue to increase. It's important to note that the government shutdown, if it continues to extend, has the potential to impact SBA's ability to approve loan origination and sales. The bank was able to secure PLP numbers for 19 loans prior has allowed the bank to produce $48 million in loans in October. But additional growth and sales are being delayed pending the opening of the federal government. Looking at the balance sheet, the company generated over $90 million in loan growth, while total assets increased by $69 million, or 5.6% during the quarter. Total assets ended the quarter at over $1.3 billion for the first time in the company history. while shareholders' equity grew 4.2% to $158 million. Average earning assets increased $34 million over the linked quarter as the bank continued to execute on its overall growth strategy. The bank has been funding the significant growth over the last few quarters, mainly with time deposits and interest-bearing money market accounts, which we have been able to successfully do and maintain an above-average net interest margin of well over 4%. The bank monitors both the deposit market and our funding levels very closely, ensuring that we continue to support loan growth appropriately while also adjusting pricing to support margin aspirations and profitability. The bank anticipates being able to quickly reprice these deposits as the Federal Reserve lowers interest rates as they are mostly short-term in nature. In addition, the bank plans to implement programs such as bold bets and significant levels of lower-cost funding and enhanced margins going forward. Non-performing assets increased by $5.8 million to $10.4 million net of the guaranteed balances and now represent a manageable 0.8% of total assets. Additionally, we charged off $836,000 in loans previously reserved for. While these increases can seem large by percent, and then we are moving into a more normal range. The bank's monitoring these credits very closely and is working them out as quickly as we can. The bulk of the increase in MPAs came from seven loans. Four of them are hotel loans and three of them are non-hospitality. All of these loans are diversified across the country and the bank has not recognized any significant trends that would imply additional risk to the portfolio at this time. The bank remains asset sensitive related to the net interest income with a 200 basis point change in short-term rates expected to impact net interest income by roughly 13 basis points. However, the earnings portfolio is almost neutral for the overall earnings at risk in wrapped up scenarios as SBA loan sales provide a natural hedge to the income in a rates down scenario. The bank purchased $7 million in securities during the quarter with an average yield of 4.9%. The overall yield on the securities portfolio remains above 4.69% and is in the top decile of our peer group. In addition, recent changes in rates have resulted in the bank achieving a positive AOCI for the first time in almost a year. Liquidity continues to remain healthy with on-ballot sheet liquidity of $253 million and borrowing capacity of $504 million. In total, the bank had replaced 70% of the on-ballot sheet deposits in under 24 hours. Capital levels remain strong with the Tier 1 capital ratio coming in at 13.37%, down from 13.82% last quarter due to balance sheet growth offset by current earnings. So while we've experienced some hiccups along the way, the overall strategic plan for the bank is continuing to develop. As we continue to move into the digital world, we will continue to see revenues and earnings grow, which will enhance shareholder value. With that, I'll turn it back over to you, Ed.

Thank you, Jeff. Well, Jeff focused on some of the anomalies, too, with respect to our numbers. very important because, as I have said on the last two quarters of reports that we've given you verbally, that our goal is to be a digital bank, increase our digital bank capabilities, that we are a digital bank and payments company. And the digital bank, really, I would define it as one that utilizes technology-driven infrastructure. It's built upon the cloud and API-based systems for the sole purpose of implementing our online operations. Now, we are still a bricks and mortar bank, and we will never stop being one. But with our payments industry, to you this morning. Because on the payment side, it's our goal and mission to deliver instant transfers and instant access 24-7 on payments. And to do that involves many technologies and many payments platforms and much subject matter expertise. But I also want to focus on the fact that, as Jeff mentioned, our SBA gap gain on sales was a very important measurement. And one of the first things that we did this particular, these last 60 days, is that we sat down with Jeff, with Nancy, and we redeveloped our entire payment system OUR COMMISSIONS, NOT OUR BROKER FEES. THOSE ARE PRETTY WELL SET. BUT THE CONCEPT IS THAT WE WERE HAVING SBA GAP GAIN ON SALES AS BELOW 3% LAST JULY. AND THIS GAP GAIN WAS DOWN TO 2.43% IN JULY. AND 3.09% IN AUGUST. But as Jeff mentioned, September was 3.93% because of some adjustments that were made to our development officer's income, which while was important for the last So all our incentives were based upon increasing volume. But as we matured, those incentives were very successful at increasing volume, but we started to see our gap gain decline, not necessarily because of the pricing, but because of our costs. So as we looked at the process, we developed a system And then developing the system of payments to our staff and our rewards payments, our bonuses, our commissions on the available funds following that gap gain. But the available funds can be managed very interestingly if you look at how you sell, and you look at what you sell, and you look at the spreads of what you sell, and you look at the relationship with the borrower, and you look at the down payment. We looked at the entire structure we bought, credit into the picture we brought. but also continue to develop a gap gain for the bank that is going to be sustained. Because when you look at, just look at the results of this last month, we saw of getting together, reorganizing it, restructuring it, simplifying it, even I can understand it now, then it really works. And Nancy took a very big leadership role in that, and so did Jeff, and I appreciate their hard work. And going on with our bank, because our CRA loan, qualified loans within our influence area, which is Clark County, had dropped way down and to a level that was not acceptable. And we agreed with the FDIC. It was not acceptable. Now, we do a lot of CRA qualified loans across the country, but they're not in our specific area that we're required to, which is Clark County. So in the last six and our chief credit officer. And I'm proud to say we've already quadrupled our loans in the last 60 days. We've already enhanced our service hours in our service area 10 times. And a matter of fact, our success CRA rating, it's not because we're in areas that could be slowed because of a bad rating, i.e. acquisitions and others. It's the fact that we will not have or it's a reputational matter. We will not be very good in a lot of other areas of regulatory performance and accept one bad area. Cannot do that. Further, we've had a major transformation in terms of how we're looking at payments in our digital bank. Now, we know that we have had this full player experience And we even remember, for those of you who have been with us long ago, how we solved major issues for the state of Oregon with their sports betting app. But the important thing that's happening right now is that that process, which, you know, the patents were developed for that custodial process and that prepaid access program is by BCS. And don't forget that the holding company owns 32.99% of BCS. That we are now putting in that process for the first time, as we released both bits and both bits is an application process for. transactions with directly with slot machines on and off their application. utilizing. And you also saw that Bolpet signed Terribles Gaming, which has a significant number of slot machines. And they have an interesting pipeline because the application is being identified as one of the most unique and it's had to go through with the Nevada Gaming Control Board. The interesting thing is Bold Bets doesn't touch the money. Money comes to the bank, but Bold Bets touches the casino management system. And if you touch the casino management system, the regulators want to know about it. And so the regulators have awarded a license to Bold Bets that is a prepaid, it's called a prepaid access program license. They don't handle the money. The bank holds the funds. Beds could be held in our PPA settlement accounts. So here's what is interesting to the state. The state now sees for the first time that here's a process, a gaming process in which the funds, the cash is actually held in the player's name, in a bank, in a guaranteed FDIC account, and not at the casino. And that was interesting for gaming to try to put their hands around and understand because they had never seen this before. But now the state of Nevada Gaming Control Board has applied a process license and approved it. Where it is right now is in what they call product testing that it has to go through. And product testing the observation and regulatory oversight of the state of Nevada, TLI testing approval, and a system that will work anywhere in the country. And it will work with any gaming operator. But we're very excited about it because it puts together our patented process for the consumer and what it does that we're really enthusiastic about it and believe that these programs will start monetizing in the second half of 26 we believe for sure because the players really like the program the gaming operator really likes the idea of not having to deal with cash And we like it because we're going to obviously deal with some significant deposits. Because when you take about 2,500 slot machines, and these numbers you can look And these are going to have the potential to put stress on our operational $30, $40 million. And the transactions every month would be about $200 million. So you can see that we're going to get very busy. And we are now upgrading significantly our internal technology capabilities to handle extremely large amounts of payments. Our credit card ops. Jeff mentioned, and I'm very proud to say that we now have operating our new application process. And the final steps of that are going to be able to identify each influencer we have to make sure that their card members that are signing up as a result of their influencing are credited to them. This was really important because once again, we had to shut down our application process during this quarter. So consequently, our credit card growth, we had to slow again. We went from 82 million to 131 million in the third quarter. The fourth quarter, we had anticipated significant growth to the 131 million. That may be delayed a quarter, but we also had to be sure and certain that we could identify fraudulent application because it went viral with this other program. We were getting 10,000 applications a day of which most of them were fraud. That's why we shut down the program of applications. But we didn't shut down and we have not shut down our credit card program and we're very an influencer in Mike Tyson. And we're going to be launching a campaign around Mike and all his social media sites in a couple of weeks. It'll be a video campaign. So we're very enthusiastic about that. We know you will understand the hiccups along the way in the revenue process. But at the same time, we believe the future is really bright for us. Now there's several other things that we're working on and we've been really developing these last 60 days and it is around payments. And that is two other areas which we formed task force on. We've had meetings on, we have engaged consultants on and that's our acquiring as an acquiring bank. We're an issuing bank on credit card. We want to be an acquiring bank on credit card. meaning that we can do all of the merchant transactions for the end user, the merchant. And we hope to gain ground in the gaming area where we can take some substantial and others gaming clients and be their merchant acquiring bank and handle all of their transactions, all of their credit card transactions and payment transactions. our consultants, but we are and fully intend to become an acquiring bank because it finishes off, if you will, the financial loop in credit cards for us as an institution to be able to be the issuing bank and the acquiring bank. There aren't many out there that do that. It's very important that we as a payments bank understand, know, and if appropriate, participate in stablecoin. And we're also measuring the strategies that we might have. We're in a steep learning curve on it, but we wanted you to know that we are investigating stablecoin seriously for the future. So now all of these payments processing the credit card, the influencers, our pool player accounts, acquiring stablecoin, being able to do and launch RTP and RFP, and being able to do tens upon tens of millions of dollars in ACH transactions a day is our objective. To get there, sitting in the room with us today is Hillary. And Hillary Sledge Sarnoah is our new chief legal officer. Now, Hillary, and I could give the analogy, I chased her to get her, but I've known Hillary for a couple of years. She came from Greenberg Drug, where she was the shareholder in the finance regulatory and compliance practice groups. One of the most important practice groups of Greenberg Traub. She advised domestic and foreign banks. She advised fintech and payments companies and digital asset firms on complex regulatory matters. So imagine that involved in all these compliance regulatory issues involved in fintech involved in payments and having been involved uh with bcs and developing our pool player account she knows a great deal about us already too much but she is going to be an amazing asset with us and she's sitting in the room with us today and i'm saying welcome to hillary she's a dynamo the other very important acquisition that we just recently Olga Benzini is a subject matter expert in payments. She's certified by the Payment Card Industry Professional Certification. She has a PCIP rating, which was issued by the Payment Card Industry Security Standards Council. It's a very high rating, difficult to obtain. She's also a certified anti-money laundering specialist, ACAMS. and fraud prevention at a company called Jack Entertainment in Cleveland. Now, Jack not only has a very significant casino operation in Cleveland, but she developed for them and with them their online sportsbook program, which she's just finished, for Jack. So think of it. And she has her master's degree in IT engineering and economics. and she's joined us as a consultant and will be ultimately joining us as a technology officer now. Our mission with her is to improve our overall effectiveness by designing and implementing strategic technology-driven enhancements to every part of our operations, payments, ACH, credit card, credit writing, underwriting. We're going to bring AI and technology in to assist our team. I heard an interesting comment by a top-level AI CEO who said, people aren't going to lose their job to robots or AI. They're going to lose their job to people who use AI. So I'm telling our team, our capacities to do business with the team we have using AI. And we fully intend to welcome Olga and to welcome Hillary. So you can see we're building a payments system And we're also in development and soon to be in development of many programs and API programs that will allow us to move massive amounts of funds in very short order, very securely, very safely. And that is our important objective. So even our staff and our EVPs, we've been sitting together and we are developing new and appropriate authority lines. We have subject matter experts. We are gonna let them make their key decisions. I'm not gonna make every decision in this institution, you can't. We're 1.3 billion on balance sheet, and if you really look at us, we're a $2.2 billion bank. We have a billion dollars off balance sheet now. As a matter of fact, I wanted to point out that our management of our loan portfolios now is over $2 billion because of the off-balance sheet portion. So we are looking and reorganizing and arming and equipping all of our team with the tools they need, not only the responsibility, but the authority to execute. We now have a new credit card manager in place, and I am overseeing that directly with him for the time being. But we are in a period of change, but we really believe that the change we're making is going to help us become a digital bank and payments company. Now, I've talked about... Our influencers, our application tech, our organization, our payments. Jeff is focused on some of the issues going forward. We feel we've cleaned up our assets quite a bit. We look forward to a good fourth quarter. As I said, our credit card may be a little weak, but not weak, weak. I have to learn how to do my forward-looking statements a little more appropriately, but Suffice it to say that we anticipate that current expectations will be met. So with that, I would like to turn it over to questions if we have any, Shauna.

As a reminder, to ask a question, please use the raise hand feature and I'll unmute your line when it's your turn to speak. We'll take our next question from Tim Coffey. Tim, please go ahead.

Thanks. Morning, Ed. Morning, Jeff. How are you guys doing?

Hey, Tim. Nice to hear you.

Thank you. So I guess my first question has to do with the fraud and the credit card side. How long has that been taking place and when did you detect it?

Well, this is a fraud that's been in place since the inception of the card. But this big fraud started in July. where we started to see application fraud, and we were trying to patchwork, as I said in one of my last calls, our existing platform. So what we did is we had to – and I reported, I think, last time that we had shut down the applications as well. But when this large – there was a large marketing agreement executed back in early 24 – by credit card, which was to grow credit balances. There was a belief, and actually the belief was contrary to our mission statement for the credit card, but there was a belief that we could grow the credit side of the credit card and make additional income, where the focus we have in gaming is on the payment side and the interchange side, not credit. So when this program was launched, it did a mailing to 700,000 people, a direct mail piece. And that direct mail piece had created a lot of noise. And we started to see these apps come in because there was a $200 reward for your first $1,000 spend. And there were those that were starting to try to have a heyday with that and acquire through AI identification quickly run up the $1,000 spend, grab the $200, and do it with another card. So we detected that, started to detect that, and started to set limits on spend, started to do all of the manual things we could do, because we're not that big a credit card company. So when we saw this kind of swamping of applications coming in, we knew that there was an issue with it, and we knew they weren't coming from our influencers, We had slowed down because we couldn't track their customers. And of course, if we can't track their customers, they can't get paid their fee from the interchange, their portion of the interchange fee. So to answer your question, we started detecting it last summer. This has been going on for a while. We've opened and shut it down. We put up various barriers. They circumvented those barriers. We did spend shutdowns. And finally, we did a shutdown where if the merchant code wasn't immediately gaming, because think of the fraudsters. The fraudsters weren't our gaming customers. The fraudsters don't want to load money onto a gaming app. They want to get money out of an ATM or merchandise. So we started tracking immediately the spend was not the gaming codes. So we were able to control it that way, but not the way we should be able to control it, which Jeff mentioned, now we are, in which, you know, Nicholas built through Royal Media, we built, developed our own application now that is pretty, it is very strong. So I hope I answered your question. So it's not, it's something that's been going on for a while. And then we shoot down that whole program, everything.

But still have good credit card volume this quarter still.

What's that?

Oh, but the volume of the credit card was still, you know, the transaction volume is still strong this quarter. And they shut it down.

Yes, we still. Yeah, because our existing users, we know we have and they're still using the card very well. It's the growth. not that it's used by our gaming users?

Yeah, it was the direct mail campaign that we issued that really exasperated the problem. Our gaming customers are still strong, and it's the same customers we've had for quite a while now.

Okay, okay. And then if we switch to the new non-accruals in the quarter, were these relatively recently funded loans, or were they a bit older?

None of them are recently funded, so they're older loans. Nothing less than 18 months.

OK. And Jeff, I appreciate the color you gave on the SBA issues, right? I mean, that pipeline is essentially shut down right now, correct?

SBA? Well, with the government, yes. We've funded all the loans that we can fund, and we won't be able to do any more.

We've written about, I think, 48 million in loans this month originated, but we can't issue them because we have to have approval of the SBA. The other thing that's a challenge for us, we can't sell any loans right now. So it's stressing our cash a little bit, but nothing we can't deal with. So we have the whole quarter in which to sell the loans. We don't lose anything in terms of the sales, but at the same time, this government's gotta reopen because none of these loans are issued to these borrowers. They can't close their deals. And we have, as I said, we're building a significant inventory like Nancy, When I talked to her when the government was threatening to shut down a month ago, we went and got as many PLP numbers as we could. We got about 19 that we were able to process loans on right now. But as I said, the final execution of those loans and the sale of loans depends on the government being open.

Right, because it's not just the funding of the loans, it's also the secondary market.

Exactly.

We are continuing to... to approve loans internally and get them lined up so when the government opens, we will have a pipeline ready to go to the government.

Okay. Great. That's helpful. And then on the new incentive structure, are you seeing any turnover in employees?

No. Okay. We have only the ones that are design turnovers that I've had to make some changes in. We'll be announcing the full scope of those, but as I said, where we have made changes in technology and in the credit card. And, of course, our CEO.

All the key producers have committed to this change. Yeah. And are on board with us.

No, we have had no, as a matter of fact. I am really pleased with. Our senior management team at all levels, EVPs, SVPs, AVPs, staff, they're incredible.

Good. That's positive. And then I've got one last check the box question for you, Ed. How is the CEO succession search going?

There is no search going on right now.

All right. Those are my questions. Thank you.

Okay. We'll take our next question from Matthew Erdner. Please go ahead.

Hey, guys. How's it going? Thanks for taking the question. Could you talk a little bit more about the partnerships with the influencers and kind of how that transaction structure works? You know, for example, with Mike Tyson, are we going to need to kind of bake in any more expenses there?

Mike is... Amazing. And there was a big press release you may have seen or not. But Mike is a partner in Bolbets as well with the Bolbets company. And he invested in Bolbets. And Mike is going to be one of our influencers. And I executed an agreement with him about two weeks ago. Now here's how our influencers work, and they all work the same, including mine, is they receive for each card that is identified as their player, they receive a piece of the interchange fee. Now, I don't want to reveal all of our internal operations and what we pay them because it's a competitive issue. So what they do is that we have an interchange that comes in from these transactions, and we have their participation. We pay nothing up front. We pay no fees. We pay no promotion fees. We have a couple of influencers we do give a monthly fee to. There's a couple of very big ones we just signed that have a big history of success, but they're short term so that we can see if indeed they're worth the initial payment. But in no case do we pay any influencers anything that would be considered a substantial fee. You know, like you see some of them that are paid by some of the big sports betting companies that pay them five, six, seven million a year. We don't do any of that.

Yeah, we anticipate that the marketing costs related to the influencers actually you know, once we change that strategy. So overall.

That's helpful. And then, you know, based off of those influencers, and I guess, you know, since you guys have kind of reopened, have you seen that acceleration in the transaction numbers? And then, you know, just to kind of frame it, do you guys have any expectation of, you know, what these influencers can bring on and how many people they can direct to your card?

Well, let me tell you right now, Three influencers right now amount to 14, six is 20, 25 million a month in transactions, just three. And then we've stopped them. They have not been expanding much at all in the last 60 days. So we're releasing them now to expand. So do we feel that we can increase the number of cards out there relatively Significantly, yes, because our volume is pretty small still, and we've seen the results on the influencers and what they do. In other words, when I talk about three influencers, when we're doing 30 million or 40 million a month in transactions, and you can see three of them are 20 million of it, you get the picture of how important they can be and they can grow.

That's very helpful there. Then in terms of expenses, and you mentioned the subject matter hires, should we expect those non-interest expenses to run a little bit higher going forward in line similar to this quarter, or would they be more in the 10-11 million range similar to the first and second quarter?

No, I would expect them to back up from this quarter to more of a normal range. Most of that was one time related or not one time, but unusual expenses that we've experienced during the quarter.

Got it. And then last one for me, just kind of, you know, looking at the second quarter of next year with the gaming deposit expectations and kind of the growth that's going to come for that. Is there anything, you know, that you guys are going to need to do in terms of back end work, you know, to prepare for that? And then, you know, I guess what is the expectation of, you know, slot machines and I guess other partners to come on board to drive that growth and profitability there?

Well, I think I was trying to answer that question with respect to preparation and back end with the technology. The technology experts and the subject matter experts we're bringing on board because yes, and what we are tend to do. is API development that will give us instant connectivity to our various clients, right to our digital online payment system for the pool player accounts. So yes, we're preparing to do many, many very high-value transactions. And we've been bringing the staff on board to do that. And particularly the development staff. That's the interesting part of technology is that you need a few very smart people in order to accomplish it. And we're very excited about the enhancements we're making. And what was the second part of your question?

Just kind of the growth and influx that you're expecting as a part of the profitability drive.

Let me explain something here that I think is important to understand. When we say that these slot companies have come on board, Bolt Betts has brought in Distill and Terribles. And yes, there are some other very important clients I know of in the pipeline. But it's a pipeline. The first important thing is to get both bits live, and they're waiting on GLI to finish the product testing, which I'm told is going very well. And then to be live with the program. Now, once it's live, then they've got to bring their customers in and get them on board the app. So there's a process here of them marketing, of their marketing to their customers to get this app on their phones and to use them. So that process takes some time to develop. So when we talk about the deposits we expect and the transactions we expect, We take a market share, you know, and we'll say that when it's mature, when it's fully mature, we'll say at 50% of their customers. And that's what we've used right now. And then, so our bill period is from 0 to 50%. So that we don't try to anticipate deposits. you know, at the highest level instantly. So it takes time. We think it takes three to six months, you know, just for market penetration, you know, for their customers. And so that's why I'm talking about our deposits to really start being significant in the second, you know, quarter of next year.

Got it. That's very helpful. Thank you for the comments and the time today, Ed.

No, you're welcome, Matt.

Again, if you have any questions, please feel free to raise your hand. Ed, it looks like we have no further questions from the participants at this time.

Melissa, I want to thank everybody for your support. You're the best bunch of shareholders and employees that one could ask for. I've met so many of you one-on-one through all the conferences and all of the investment times. And you know of some of the challenges we've had, but you also have seen our resiliency in exercising our business plan. And we think that it's more exciting than ever. So thank you.

This concludes the Q3 2025 Earnings Conference Call for G-Bank Financial Holdings, Inc. Thank you for your attendance.