Net interest income increased to $63.1 million
Net interest margin increased to 3.19%
Total loans grew to $6.1 billion
Total deposits rose to $7.3 billion
Credit trends remained favorable
CHEVY CHASE, Md.--(BUSINESS WIRE)--July 30, 2026--
Forbright, Inc. (Nasdaq FRBT):
Fellow Shareholders,
Forbright, Inc. (Nasdaq FRBT) ("Forbright," the "Company," "we," "our," or "us") wants to begin by welcoming our new shareholders. Because this is our first letter, we will spend more time discussing our strategy, the market opportunity, and our plan to create long-term shareholder value. We think it is important to set the table clearly: how the market is evolving, why we are positioned to capitalize on those changes, and the decisions we are making to compound value over time.
Alongside the numbers, we will tell you plainly how we see the business and the opportunity ahead. We will write to you the way we would want someone to write to us if our positions were reversed. Like us, you are owners, and owners deserve the same candor and clarity we would demand ourselves. We believe candid communication builds trust and strengthens companies.
We will begin, where we should, with the numbers:
Forbright, Inc. is the parent company of wholly-owned subsidiary Forbright Bank (the "Bank"), and we are reporting today financial results for the second quarter ended June 30, 2026. The Company reported net income of $4.1 million, or $0.10 of basic earnings per outstanding voting and non-voting common share and $0.09 of diluted earnings per outstanding voting and non-voting common share for the three months ended June 30, 2026, compared to net income of $11.6 million, or $0.29 of basic earnings per outstanding voting and non-voting common share and $0.27 of diluted earnings per outstanding voting and non-voting common share for the three months ended March 31, 2026.
These results are consistent with our expectations and include one-time costs for a $5.6 million write-down of compensation related deferred tax assets, due to tax rules that now apply since we are a public company, and other IPO expenses of $0.9 million and $3.1 million, respectively, for the three and six months ended June 30, 2026.
Quarter-over-Quarter Year-over-Year
-- Net interest income was $63.1 -- Net interest income was $122.7
million for the three months million for the six months ended
ended June 30, 2026, an increase June 30, 2026, a decrease of $0.1
of $3.6 million from the three million from the six months ended
months ended March 31, 2026. June 30, 2025.
-- Provision for credit losses was -- Provision for credit losses was
$5.9 million for the three months $9.4 million for the six months
ended June 30, 2026, compared to ended June 30, 2026, compared to
$3.5 million for the three months $12.5 million for the six months
ended March 31, 2026. Ratio of ended June 30, 2025. Ratio of net
net charge-offs to average total charge-offs to average total
loans at amortized cost was 0.20% loans at amortized cost was 0.26%
for the three months ended June for the six months ended June 30,
30, 2026, compared to 0.32% for 2026, compared to 0.27% for the
the three months ended March 31, six months ended June 30, 2025.
2026.
-- Net interest margin was 3.19% for -- Net interest margin was 3.14% for
the three months ended June 30, the six months ended June 30,
2026, an increase of 9 basis 2026, a decrease of 58 basis
points from the three months points from the six months ended
ended March 31, 2026. June 30, 2025.
-- Efficiency ratio was 77.39% for -- Efficiency ratio was 77.58% for
the three months ended June 30, the six months ended June 30,
2026, compared to 77.80% for the 2026, compared to 67.48% for the
three months ended March 31, six months ended June 30, 2025.
2026.
-- Return on average stockholders' -- Return on average stockholders'
equity was 1.89% for the three equity was 3.71% for the six
months ended June 30, 2026, months ended June 30, 2026,
compared to 5.62% for the three compared to 7.07% for the six
months ended March 31, 2026. months ended June 30, 2025.
-- Return on average tangible common -- Return on average tangible common
equity(1) was 2.19% for the three equity(1) was 4.02% for the six
months ended June 30, 2026, months ended June 30, 2026,
compared to 5.95% for the three compared to 7.54% for the six
months ended March 31, 2026. months ended June 30, 2025.
-- Non-interest income was $21.8 -- Non-interest income was $37.4
million for the three months million for the six months ended
ended June 30, 2026, compared to June 30, 2026, compared to $25.3
$15.6 million for the three million for the six months ended
months ended March 31, 2026. June 30, 2025.
-- Core non-interest income(1) was -- Core non-interest income(1) was
$21.7 million for the three $39.7 million for the six months
months ended June 30, 2026, ended June 30, 2026, compared to
compared to $18.0 million for the $21.5 million for the six months
three months ended March 31, ended June 30, 2025.
2026.
__________________ (1) Non-GAAP financial measure. See "Non-GAAP Financial
Measures" section of this press release for a reconciliation to the most
directly comparable GAAP measure.
BALANCE SHEET SUMMARY
Total assets increased $272.4 million to $8.5 billion as of June 30, 2026, from $8.2 billion as of March 31, 2026. The increase in assets was due primarily to loan growth.
Loans
Total loans were $6.1 billion as of June 30, 2026, an increase of $276.1 million from $5.8 billion as of March 31, 2026. The increase in loans was due primarily to new originations and balance increases in Lender Finance within Commercial and Industrial and Real Estate Finance within Commercial Real Estate held for investment loans, as well as new originations of Corporate Finance within Commercial and Industrial loans held-for-sale.
Investment Securities
Total carrying amount of investment securities was $1.3 billion as of June 30, 2026, compared to $1.3 billion as of March 31, 2026. Investment securities remained flat with maturities of U.S. Treasury securities replaced with purchases of Residential and Commercial Agency Mortgage-backed securities.
Deposits
Total deposits were $7.3 billion as of June 30, 2026, compared to $7.1 billion as of March 31, 2026. The increase in deposits was due primarily to an increase in Digital Banking deposits offset partially by maturing wholesale certificates of deposit.
Borrowed Funds
Total borrowed funds were $151.2 million as of June 30, 2026, compared to $151.1 million as of March 31, 2026.
Stockholders' Equity
Total stockholders' equity was $967.2 million as of June 30, 2026, compared to $831.2 million as of March 31, 2026. The increase was primarily driven by the issuance of 7.9 million shares of common stock resulting in proceeds, net of issuance costs, of $131.0 million in connection with the Company's initial public offering.
OUR VIEW
Loan growth for the quarter was strong and generally balanced across our lending strategies with Healthcare Finance and Lender Finance having the largest shares of our nearly $1.2 billion in new and upsized loan commitments for the quarter. We continue to see a competitive market environment for loans, with spreads and structures stable compared with recent quarters. Our sector-focused lending strategies are finding attractive opportunities and we benefit from a strong, high-quality pipeline across all our strategies. We were also pleased that our newly launched Asset Finance strategy closed its first equipment financing transaction in June, a few months ahead of plan.
In our fee businesses, closings in our FHA/HUD business were behind plan, as several transactions moved into the third quarter due to processing backlogs at the FHA. Alliance Partners was behind plan, but we are hopeful that additional loan types in the pipeline can support continued growth.
Deposit growth was on track during the quarter, and our new deposit promotion capability launched mid-June. This initial promotion in our digital bank has exceeded expectations, and is helping drive deposit growth well ahead of plan thus far in the third quarter.
The credit metrics we track most closely remained favorable during the second quarter. Our national lending strategies continue to perform very well from a credit perspective, with our limited stressed loans concentrated in our discontinued and shrinking legacy community bank portfolio.
We remained focused on expense management and are on track to meet our 2027 expense targets. This quarter showed good progress towards those goals.
We view the broader economy as benefiting from significant AI-related capital spending and inflation likely remaining elevated, driven mostly by geopolitical conflicts. We have very little credit exposure to the AI economy, which we view as an unattractive credit opportunity, or to software businesses that could be disrupted by new technologies. In general, broader economic conditions, while a consideration, are not central to our credit decisions, which rely on rigorous and disciplined bottom-up underwriting of asset values and cash flows.
FORBRIGHT: PURPOSE BUILT FOR THE FUTURE
Forbright sits at the intersection of two structural shifts reshaping U.S. banking. Each is durable and accelerating, and together they provide long-lasting momentum to our business model: a technology-enabled national deposit platform funding nationally sourced, sector-focused commercial lending. We pair this with a disciplined approach to maximizing returns on capital through prudent balance sheet allocation, risk-based pricing, and robust risk management. The result is the potential for long-duration growth in an exceptionally large addressable market, with stronger risk-adjusted return potential than legacy banks.
Deposits Moving from Branch-Based to Digital
The deposit market is moving out of bank branches and into digital banks. Deposits held by direct banks increased from less than 1% in 2000 to approximately 10% as of December 31, 2025, according to the FFIEC and the Federal Reserve. Consistent with this increase, approximately 75% of American consumers in October 2025 preferred managing their bank accounts digitally, according to a survey by the American Bankers Association.
Forbright embodies this evolution. We gather deposits nationally without the fixed costs of real estate and branch staff, allowing us to return more to depositors in rate and service while running at an attractive all-in cost of funds. Our platform is built on a modern, API-driven technology stack rather than legacy core infrastructure, so it scales at low marginal cost and integrates new technologies quickly.
We believe AI will accelerate this shift by lowering the cost and raising the quality of deposit-gathering and the disruption is about to intensify as AI agents that maximize deposit yields for consumers gain widespread adoption. JPMorgan's "Smart Cash," for instance, automatically sweeps idle balances into higher-yielding accounts. As these agents proliferate, they strip away the inertia that lets branch banks hold large balances in low- or no-interest accounts. Money will move fluidly to whoever offers a fair rate through the cleanest digital rails - a clear advantage for digitally native banks like Forbright.
The Increasing Sophistication of Commercial Lending
The U.S. economy has grown far more complex, and a more sophisticated economy generates more heterogeneous risk - risk that cannot be underwritten by a generalist credit box or a "one size fits all" credit underwriting criteria. Knowing whether a business will repay now requires genuine domain expertise: a client's revenue durability, competitive moat, regulatory exposure, and what its collateral is worth in a downturn. And because commercial businesses are increasingly national in scope, geography matters far less in how they choose banking partners.
As a result, we see bank lending as bifurcating. Commoditized credit will flow to whoever has scale and automation; commercial credit will flow to whoever has the deepest expertise and most attractive funding. Specialization earns premium spreads precisely because fewer do it, and produces better outcomes because the lender understands the risk. Forbright's six national, specialized lending strategies - led by deeply experienced teams with centralized risk and credit management - let us find, structure, and fund only the strongest deals while diversifying away single-region and industry concentration.
A Better Deal for Consumers Means a Higher Bar for Banks
For consumers, this shift is unambiguously beneficial. Digital competition and yield-seeking agents make it effortless to capture a fair rate, ending the era when banks benefited from idle, underpaid balances. We believe more than $50 billion a year in additional interest would flow to consumers if this shift were complete. As switching costs fall toward zero, banks can no longer rely on inertia for cheap funding -- a profoundly healthy correction and a threat to business models built on not delivering fair value to depositors.
Fairly priced funding raises the bar on the other side of the balance sheet. To prosper, a bank must earn more on its assets through well-underwritten, higher-yielding loans; generate fee income that does not depend on a deposit subsidy; and operate free of expensive legacy infrastructure. This is the model Forbright was built to execute: lending nationally through multiple strategies competing for capital on risk-adjusted returns, complemented by capital-light fee income from syndication, advisory, and asset management, all on a branch-light, technology-enabled platform designed for efficiency.
The Road Ahead
The road ahead is straightforward. Our digital banking platform has significant capacity to grow, and each of our national lending businesses can scale meaningfully. Because our operating infrastructure is already built, every incremental loan and deposit carries only marginal cost - so growth drives dramatic improvement in operating efficiency, and AI could lower costs further still. None of this is accidental. It is the product of deliberate design, disciplined execution, and a long-term commitment to building an enduring franchise.
2026 FOCUS
For the remainder of the year, our priorities are clear: drive prudent loan and fee growth across our six lending strategies and fee businesses; lower our cost of funds through the new promotion capability; successfully stand up our digital checking and payments product; and advance additional expense initiatives to improve operating efficiency.
At the same time, we are actively exploring adjacent opportunities where our deposit technology platform could provide a distinct advantage as AI reshapes the deposit market. We will evaluate these opportunities with discipline, but once the path is clear, we plan to pursue them with ambition.
COMPARISONS
Quarter-over-Quarter
Net Interest Income
Net interest income was $63.1 million for the three months ended June 30, 2026, compared to $59.6 million for the three months ended March 31, 2026, an increase of $3.6 million. The change reflects an increase in interest income of $5.3 million compared to an increase in interest expense of $1.7 million.
Total interest income increased $5.3 million to $129.1 million for the three months ended June 30, 2026, from $123.8 million for the three months ended March 31, 2026. The increase was due primarily to growth in average loans which increased 3.9% compared to the prior quarter. The remaining increase was largely due to a three basis point increase in loan yields and the benefit of one additional day in the quarter.
Total interest expense increased $1.7 million to $65.9 million for the three months ended June 30, 2026, from $64.2 million for the three months ended March 31, 2026. The increase in interest expense was due primarily to an increase in Digital Banking and third party sweeps balances, and an additional day in the quarter, offset partially by lower wholesale certificates of deposit balances and a two basis point decline in the cost of interest-bearing liabilities.
Net interest margin was 3.19% for the three months ended June 30, 2026, compared to 3.10% for the three months ended March 31, 2026, due primarily to an eight basis point increase in the yield on earning-assets, reflecting favorable asset mix and higher loan yields, and a four basis point decrease in cost of funds, reflecting higher non-interest-bearing deposit balances and a two basis point decline in the cost of interest-bearing liabilities.
Provision for Credit Losses
The Company recorded a provision for credit losses of $5.9 million for the three months ended June 30, 2026 compared to a provision of $3.5 million for the three months ended March 31, 2026. The provision for credit losses for the three months ended June 30, 2026 was driven by an increase in the allowance for credit losses on loans ("ACL -- Loans") of $1.8 million, net charge-offs of $2.7 million, and an increase in the allowance for credit losses on unfunded commitments ("ACL -- Unfunded") of $1.4 million. The provision for credit losses for the three months ended March 31, 2026 was driven by a decrease in the ACL -- Loans of $0.2 million, net charge-offs of $4.1 million, and a reduction in the ACL -- Unfunded of $0.4 million. Net charge-offs for the quarterly periods that relate to legacy Consumer and Commercial and Industrial forward flow loans were $1.7 million and $3.1 million, respectively for the three months ended June 30, 2026 and March 31, 2026.
Non-interest Income
Total non-interest income was $21.8 million for the three months ended June 30, 2026, compared to $15.6 million for the three months ended March 31, 2026. The increase of $6.3 million was due primarily to solar loan administration fees related to the solar servicing business, an increase in FHA/HUD originations, rental income from other tenants in our headquarters building, following our acquisition in April 2026, and realized and unrealized gains on loans and other real estate owned assets.
Core non-interest income(1) was $21.7 million for the three months ended June 30, 2026, compared to $18.0 million for the three months ended March 31, 2026. The increase of $3.8 million was primarily due to the items noted for total non-interest income related to FHA/HUD fees and solar servicing income.
Non-interest Expense
Total non-interest expense was $65.8 million for the three months ended June 30, 2026 compared to $58.5 million for the three months ended March 31, 2026. The increase of $7.3 million was due primarily to the combination of (i) the personnel retention compensation program implemented in connection with our initial public offering, (ii) legal fees and sub-servicer fees related to the Solar Servicing business, which are largely reimbursed by counterparties to the loans and recognized in other non-interest income, and (iii) expenses related to the ownership of the Company's headquarters following the building acquisition in April 2026.
Income Taxes
Income tax expense was $9.2 million for the three months ended June 30, 2026, resulting in an effective tax rate of 69.0%, compared to income tax expense of $1.6 million and an effective tax rate of 12.0% for the three months ended March 31, 2026. Income tax expense for the three months ended June 30, 2026 includes (i) a $5.6 million write-down of deferred tax assets as of December 31, 2025 for stock compensation in connection with the initial public offering, which is due to tax rules that limit executive compensation deductions for companies with publicly traded securities, and (ii) a $1.1 million benefit for accretion of the deferred credit, compared to a benefit of $1.7 million for the three months ended March 31, 2026.
The effective tax rate for the three months ended June 30, 2026 was 69.0%, compared to 12.0% for the three months ended March 31, 2026. For the three months ended June 30, 2026, the effective tax rate was increased by 42.3% related to the one-time deferred tax asset adjustment for stock compensation, offset by a reduction of 8.6% related to accretion of the deferred credit. The effective tax rate for the three months ended March 31, 2026 was reduced by 13.0% related to accretion of the deferred credit during that period.
__________________ (1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most directly comparable GAAP measure.
Year-over-Year
Net Interest Income
Net interest income was $122.7 million for the six months ended June 30, 2026, compared to $122.8 million for the six months ended June 30, 2025. The slight decrease of $0.1 million was primarily due to an increase in interest expense of $8.7 million slightly exceeding an increase in interest income of $8.6 million.
Total interest income increased $8.6 million to $252.8 million for the six months ended June 30, 2026, from $244.2 million for the six months ended June 30, 2025. The increase was primarily due to increases in average loan balances and interest-earning deposits with banks, offset largely by a 137 basis point decrease in yield earned on loans, as well as lower average balances and yields on investment securities. The 137 basis point decrease in yield earned on loans was primarily driven by a 69 basis point decrease in average SOFR, lower average spreads reflecting changes in market pricing, and a mix shift in the loan portfolio towards lower yielding categories, and higher relative levels of amortization of deferred fees during the six months ended June 30, 2025, which included $4.1 million for restructured loans.
Total interest expense increased $8.7 million to $130.1 million for the six months ended June 30, 2026, from $121.4 million for the six months ended June 30, 2025. The increase in interest expense was primarily due to an increase in average balances in third-party sweep deposits and Digital Banking deposits offset largely by a 35 basis point decrease in the average rate paid on interest-bearing deposits.
Net interest margin was 3.14% for the six months ended June 30, 2026, compared to 3.72% for the six months ended June 30, 2025, primarily due to a 137 basis point decrease in the yield on loans offset partially by a positive change in asset mix with loan growth exceeding growth in other earning asset categories, and a 40 basis point decrease in cost of funds.
Provision for Credit Losses
The Company recorded a provision for credit losses of $9.4 million for the six months ended June 30, 2026 compared to $12.5 million for the six months ended June 30, 2025. The provision for credit losses for the six months ended June 30, 2026 was driven by an increase in the ACL -- Loans of $1.6 million, net charge-offs of $6.8 million, and an increase of $1.0 million in the ACL -- Unfunded. The provision for credit losses for the six months ended June 30, 2025 was driven by an increase in the ACL -- Loans of $6.0 million, $5.6 million in net charge-offs, and an increase of $0.9 million in the ACL -- Unfunded. Net charge-offs for the year-to-date periods that relate to legacy Consumer and Commercial and Industrial forward flow loans were $4.8 million and $5.5 million, respectively for the six months ended June 30, 2026 and June 30, 2025.
Non-interest Income
Total non-interest income was $37.4 million for the six months ended June 30, 2026, compared to $25.3 million for the six months ended June 30, 2025. The increase of $12.1 million was primarily due to servicing fees and trust administration income related to the solar servicing business. The increase was offset by a decrease in income related to lower volume of FHA/HUD originations, less loan sales and fair value marks related to Corporate Finance loans, and lower investment advisory fees.
Core non-interest income(1) was $39.7 million for the six months ended June 30, 2026, compared to $21.5 million for the six months ended June 30, 2025. The increase of $18.2 million was primarily due to the items noted for total non-interest income related to solar servicing income, offset partially by lower FHA/HUD originations, and lower investment advisory fees.
Non-interest Expense
Total non-interest expense was $124.2 million for the six months ended June 30, 2026, compared to $99.9 million for the six months ended June 30, 2025. The increase of $24.3 million resulted primarily due to (i) the acquisition of the Solar Servicing business, (ii) the personnel retention compensation program implemented in connection with our initial public offering, (iii) professional fees associated with the initial public offering, and (iv) expenses related to the ownership of the company's headquarters following the building acquisition in April 2026.
Income Taxes
Income tax expense was $10.8 million for the six months ended June 30, 2026, resulting in an effective tax rate of 40.6%, compared to income tax expense of $9.4 million and an effective tax rate of 26.3% for the six months ended June 30, 2025. Income tax expense for the six months ended June 30, 2026 includes (i) a $5.6 million write-down of deferred tax assets as of December 31, 2025 for stock compensation in connection with the initial public offering, which is due to tax rules that limit executive compensation deductions for companies with publicly traded securities, and (ii) a $2.9 million benefit for accretion of the deferred credit.
The effective tax rate for the six months ended June 30, 2026 was 40.6%, compared to 26.3% for the six months ended June 30, 2025. For the six months ended June 30, 2026, the effective tax rate was increased by 21.2% related to the one-time deferred tax asset adjustment for stock compensation, offset by a reduction of 10.8% related to accretion of the deferred credit.
__________________ (1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most directly comparable GAAP measure. ASSET QUALITY -------------
The Company's ACL -- Loans held for investment at amortized cost was $54.6 million, or 0.98% of total loans held for investment at amortized cost, as of June 30, 2026, compared to $52.8 million, or 0.98%, as of March 31, 2026. The increase in the allowance for June 30, 2026 compared to March 31, 2026 was primarily due to increases in the ACL -- Loans for forward flow consumer loans driven by recent portfolio performance and was offset partially by a favorable mix shift within the portfolio toward portfolios with lower ACL -- Loans to loans held for investment at amortized cost ratios.
Net charge-offs were $2.7 million, or 0.20% of average loans held for investment at amortized cost, for the three months ended June 30, 2026, compared to $4.1 million, or 0.32%, for the three months ended March 31, 2026. Of the net charge-offs for the three months ended June 30, 2026 and March 31, 2026 $1.7 million and $3.1 million were related to legacy Consumer and Commercial and Industrial forward flow loans.
Net charge-offs were $6.8 million, or 0.26% of average loans held for investment at amortized cost, for the six months ended June 30, 2026, compared to $5.6 million, or 0.27%, for the six months ended June 30, 2025. Of the net charge-offs for the six months ended June 30, 2026 and June 30, 2025 $4.8 million and $5.5 million were related to legacy Consumer and Commercial and Industrial forward flow loans.
Non-performing assets were $92.9 million as of June 30, 2026, compared to $93.3 million as of March 31, 2026. Non-performing assets as a percentage of total assets were 1.09% as of June 30, 2026, compared to 1.13% as of March 31, 2026. Both in total, and as a percentage of total assets, non-performing assets remained relatively flat during the periods presented.
Non-performing loans held for investment at amortized cost were $72.5 million as of June 30, 2026, compared to $74.3 million as of March 31, 2026. Non-performing loans as a percentage of total loans held for investment at amortized cost was 1.30% as of June 30, 2026, compared to 1.38% as of March 31, 2026. Non-performing loans held for investment at amortized cost remained relatively flat both in total and as a percentage of held for investment loans at amortized cost for the periods presented.
CAPITAL -------
As of June 30, 2026, the Company's and Bank's Tier 1 leverage ratio was 10.38% and 11.24%, respectively, compared to 8.92% and 10.19%, respectively, as of March 31, 2026.
As of June 30, 2026, the Company's and Bank's Common Equity Tier 1 ratio was 12.97% and 14.08%, respectively, compared to 11.47% and 13.11%, respectively, as of March 31, 2026.
Total stockholders' equity was $967.2 million as of June 30, 2026, compared to $831.2 million as of March 31, 2026. The increase was primarily driven by the issuance of 7.9 million shares of common stock resulting in proceeds, net of issuance costs, of $131.0 million in connection with the Company's initial public offering.
As of June 30, 2026, the Company had:
-- available borrowing capacity of $423.4 million with the Federal Home
Loan Bank of Atlanta;
-- available borrowing capacity of $1.9 billion with the Federal Reserve
Bank;
-- available borrowing capacity of $90.0 million from Fed Funds facilities
with three other financial institutions; and
-- available-for-sale investment securities with a fair value of $1.2
billion.
CONFERENCE CALL AND WEBCAST
---------------------------
The Company will host a conference call to discuss its second quarter 2026 financial results on July 30, 2026, at 8:00 a.m. Eastern Time. The live webcast will be available in the Events & Presentations section of the Company's Investor Relations website at ir.forbrightbank.com.
To join, please pre-register here at least 15 minutes before the call begins.
A replay and transcript will be available in the Events & Presentations section of the Company's Investor Relations website at ir.forbrightbank.com approximately two hours after the conclusion of the call.
ABOUT FORBRIGHT, INC. ---------------------
Forbright, Inc. (Nasdaq: FRBT) is a bank holding company and the parent of FDIC-insured Forbright Bank, a modern financial services platform spanning nationwide middle-market lending, digital consumer banking, strategic advisory, and asset management services. Headquartered in Chevy Chase, Maryland, the Company operates at the intersection of two powerful, structural forces reshaping the U.S. banking sector: the rapidly evolving needs of the $10 trillion national middle market and the broadly accelerating shift toward digital-first banking. For more information, please visit forbrightbank.com. The information contained in, or that can be accessed through, our website is not incorporated by reference in, and is not part of, this press release. The inclusion of our website address in this press release is only as an inactive textual reference.
FORWARD-LOOKING STATEMENTS --------------------------
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include discussion of plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as "see," "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan" or words or phrases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. Such forward-looking statements are based on various assumptions (some of which may be beyond our control) and are subject to risks and uncertainties, which change over time, and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to: economic conditions that impact the financial services industry and/or our business; our ability to manage our credit risk effectively and the potential deterioration of the business and economic conditions in our primary market areas; the composition of our loan portfolio; our ability to achieve organic loan and deposit growth and the composition of such growth; our ability to maintain our bank's reputation; our ability to attract and retain skilled employees and manage changes in our management personnel; risks associated with unauthorized access, cyber-crime and other threats to data security; our ability to effectively compete with other financial services companies and the effects of competition in the financial services industry on our business; our ability to successfully develop and commercialize new or enhanced products and services; changes in the demand for our products and services; the sufficiency of our capital, including sources of capital and the extent to which we may be required to raise additional capital to meet our goals; the effectiveness of our risk management and internal disclosure controls and procedures; our access to sources of liquidity and capital to address our liquidity needs; the effects of the failure of any component of our business infrastructure provided by a third-party; any failure or interruption of our information and communications systems; the impact of, and changes in applicable laws, regulations and accounting standards and policies; the effects of geopolitical instability, including war, terrorist attacks, and man-made and natural disasters; our ability to keep pace with technological changes; the effects of problems encountered by other financial institutions; and other risks and uncertainties described under "Risk Factors" of our Registration Statement on Form S-1 and subsequent filings with the U.S. Securities and Exchange Commission.
All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made except as required by the federal securities laws.
If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. You should specifically consider the factors identified in this presentation that could cause actual results to differ before making an investment decision to purchase our Class A common stock. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us.
FINANCIAL TABLES
----------------
FORBRIGHT, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
For the Three Months Ended
--------------------------
(dollars in thousands,
except per share June 30, March 31,
amounts) 2026 2026 Change
----------------------- ------------ ------------ -------------
INTEREST INCOME
Loans held for
investment $ 98,522 $ 93,164 $ 5,358
Loans held-for-sale 8,484 8,194 290
Deposits with banks 7,252 7,582 (330)
Interest on
investment
securities 14,158 14,099 59
Interest and
dividends on other
earning assets 648 716 (68)
---------- ---------- ---------
Total interest
income 129,064 123,755 5,309
INTEREST EXPENSE
Deposits 64,024 62,295 1,729
Subordinated debt,
net 1,895 1,902 (7)
---------- ---------- ---------
Total interest
expense 65,919 64,197 1,722
---------- ---------- ---------
Net interest
income 63,145 59,558 3,587
Provision for credit
losses 5,899 3,473 2,426
---------- ---------- ---------
Net interest
income after
provision for
credit losses 57,246 56,085 1,161
NON-INTEREST INCOME
Servicing income 6,876 7,087 (211)
Investment advisory
fees 3,090 3,193 (103)
Fee income on loans 2,252 2,003 249
Gains/(losses) on
sales of loans and
investment
securities, net 252 (34) 286
Unrealized losses on
loans and financing
receivables, net (963) (1,335) 372
Other non-interest
income 10,339 4,670 5,669
---------- ---------- ---------
Total non-interest
income 21,846 15,584 6,262
NON-INTEREST EXPENSE
Compensation and
benefits 33,407 31,642 1,765
Information
technology 7,581 7,540 41
Professional fees 9,777 7,823 1,954
Loan administration
and servicing 5,500 4,125 1,375
Advertising and
marketing 2,720 2,304 416
FDIC insurance 1,111 902 209
Occupancy expense 1,466 1,122 344
Other non-interest
expense 4,214 2,999 1,215
---------- ---------- ---------
Total non-interest
expense 65,776 58,457 7,319
---------- ---------- ---------
Income before
income taxes 13,316 13,212 104
Income tax expense 9,194 1,580 7,614
---------- ---------- ---------
Net income $ 4,122 $ 11,632 $ (7,510)
========== ========== =========
Basic earnings per
voting and non-voting
common share $ 0.10 $ 0.29 $ (0.19)
Diluted earnings per
voting and non-voting
common share $ 0.09 $ 0.27 $ (0.18)
Weighted-average shares
used to compute
earnings per voting
common share:
Basic 21,175,037 19,063,817 2,111,220
Diluted 23,498,322 21,188,692 2,309,630
Weighted-average shares
used to compute
earnings per non-voting
common share, basic and
diluted 21,014,378 21,242,551 (228,173)
FORBRIGHT, INC. AND
SUBSIDIARIES
Consolidated Statements
of Income (Unaudited)
For the Six Months Ended
-------------------------
(dollars in thousands,
except per share June 30, June 30,
amounts) 2026 2025 Change
----------------------- ------------ ----------- -------------
INTEREST INCOME
Loans held for
investment $ 191,686 $ 175,759 $ 15,927
Loans held-for-sale 16,678 19,822 (3,144)
Deposits with banks 14,834 14,576 258
Interest on
investment
securities 28,257 32,261 (4,004)
Interest and
dividends on other
earning assets 1,364 1,776 (412)
---------- ---------- ---------
Total interest
income 252,819 244,194 8,625
INTEREST EXPENSE
Deposits 126,319 115,205 11,114
Subordinated debt,
net 3,797 4,942 (1,145)
Other borrowings -- 1,266 (1,266)
---------- ---------- ---------
Total interest
expense 130,116 121,413 8,703
---------- ---------- ---------
Net interest
income 122,703 122,781 (78)
Provision for credit
losses 9,372 12,549 (3,177)
---------- ---------- ---------
Net interest
income after
provision for
credit losses 113,331 110,232 3,099
NON-INTEREST INCOME
Servicing income 13,963 -- 13,963
Investment advisory
fees 6,283 8,498 (2,215)
Fee income on loans 4,255 3,831 424
Gains on sales of
loans and investment
securities, net 218 2,170 (1,952)
Unrealized
(losses)/gains on
loans and financing
receivables, net (2,298) 2,746 (5,044)
Other non-interest
income 15,009 8,047 6,962
---------- ---------- ---------
Total non-interest
income 37,430 25,292 12,138
NON-INTEREST EXPENSE
Compensation and
benefits 65,049 60,440 4,609
Information
technology 15,121 12,896 2,225
Professional fees 17,600 6,542 11,058
Loan administration
and servicing 9,625 2,756 6,869
Advertising and
marketing 5,024 4,539 485
FDIC insurance 2,013 3,349 (1,336)
Occupancy expense 2,588 2,497 91
Other non-interest
expense 7,213 6,896 317
---------- ---------- ---------
Total non-interest
expense 124,233 99,915 24,318
---------- ---------- ---------
Income before
income taxes 26,528 35,609 (9,081)
Income tax expense 10,774 9,373 1,401
---------- ---------- ---------
Net income $ 15,754 $ 26,236 $ (10,482)
========== ========== =========
Basic earnings per
voting common share $ 0.38 $ 0.65 $ (0.27)
Basic earnings per
non-voting common
share $ 0.39 $ 0.65 $ (0.26)
Diluted earnings per
voting common share $ 0.36 $ 0.63 $ (0.27)
Diluted earnings per
non-voting common
share $ 0.37 $ 0.63 $ (0.26)
Weighted-average shares
used to compute
earnings per voting
common share:
Basic 20,120,097 18,993,327 1,126,770
Diluted 22,344,262 20,157,743 2,186,519
Weighted-average shares
used to compute
earnings per non-voting
common share, basic and
diluted 21,127,834 21,242,551 (114,717)
FORBRIGHT, INC. AND
SUBSIDIARIES
Consolidated Balance
Sheets (Unaudited)
(dollars in thousands,
except per share June 30, March 31, December 31,
amounts) 2026 2026 2025
------------------------ ----------- ----------- -------------
ASSETS
Cash, due from banks
and restricted cash $ 26,524 $ 25,280 $ 18,241
Interest-bearing
deposits with banks 808,192 840,856 630,474
--------- --------- ---------
Cash, cash
equivalents and
restricted cash 834,716 866,136 648,715
Investment securities
available-for-sale,
at fair value 1,210,665 1,235,599 1,254,887
Investment securities
held-to-maturity, at
amortized cost, net
of allowance for
credit losses -
investment securities
of $110,
respectively 48,634 48,834 48,834
Loans held-for-sale 465,474 407,594 379,662
Loans held for
investment, at fair
value 3,481 4,555 4,645
Loans held for
investment, at
amortized cost 5,595,872 5,376,537 5,222,234
Allowance for credit
losses - loans (54,621) (52,794) (52,986)
--------- --------- ---------
Net loans held for
investment, at
amortized cost 5,541,251 5,323,743 5,169,248
Other earning assets,
net 50,479 50,690 55,928
Deferred tax asset,
net 145,269 152,963 153,314
Accrued interest
receivable 46,445 45,369 55,155
Premises and
equipment, net 47,877 29,763 30,763
Goodwill and other
intangible assets,
net 35,964 31,402 31,685
Other assets 75,249 36,412 56,470
--------- --------- ---------
Total assets $8,505,504 $8,233,060 $7,889,306
========= ========= =========
LIABILITIES
Non-interest-bearing
deposits $ 435,065 $ 473,153 $ 372,444
Interest-bearing
deposits 6,830,770 6,665,055 6,405,471
--------- --------- ---------
Total deposits 7,265,835 7,138,208 6,777,915
Subordinated debt, net 151,181 151,092 151,003
Other liabilities 121,325 112,565 137,945
--------- --------- ---------
Total liabilities 7,538,341 7,401,865 7,066,863
--------- --------- ---------
Off-balance sheet
commitments
STOCKHOLDERS' EQUITY
Preferred stock,
$0.001 par value per
share; 5,000,000
shares authorized; no
shares issued and
outstanding -- -- --
Common stock, $0.001
par value per share;
103,200,000 shares
authorized:
Voting common
stock, 28,949,031,
19,605,006, and
19,438,060 shares
issued and
outstanding,
respectively 29 20 20
Non-voting common
stock, 20,748,177,
21,242,551, and
21,242,551 shares
issued and
outstanding,
respectively 21 21 21
Additional paid-in
capital 628,499 493,074 490,550
Retained earnings 344,582 340,460 328,828
Accumulated other
comprehensive
(loss)/income (5,968) (2,380) 3,024
--------- --------- ---------
Total stockholders'
equity 967,163 831,195 822,443
--------- --------- ---------
Total
liabilities and
stockholders'
equity $8,505,504 $8,233,060 $7,889,306
========= ========= =========
FORBRIGHT, INC. AND SUBSIDIARIES
Performance Ratios
(Unaudited)
For the Three Months
Ended For the Six Months Ended
----------------------- -------------------------
June 30, March 31, June 30, June 30,
2026 2026 2026 2025
----------------- ---------- ----------- ----------- ------------
Return on average
total assets(2) 0.20 % 0.59 % 0.39 % 0.77 %
Return on average
stockholders'
equity(2) 1.89 % 5.62 % 3.71 % 7.07 %
Return on average
tangible common
equity(1) 2.19 % 5.95 % 4.02 % 7.54 %
Yield on earning
assets(2) 6.52 % 6.44 % 6.48 % 7.39 %
Yield on
interest-bearing
liabilities(2) 3.87 % 3.89 % 3.88 % 4.25 %
Spread(3) 2.65 % 2.55 % 2.60 % 3.14 %
Net interest
margin(4) 3.19 % 3.10 % 3.14 % 3.72 %
Efficiency
ratio(5) 77.39 % 77.80 % 77.58 % 67.48 %
__________________
(1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of
this press release for a reconciliation to the most directly comparable GAAP
measure.
(2) Annualized.
(3) Spread represents the difference between the annualized weighted average
yield on interest-earning assets and the annualized weighted average rate paid
on interest-bearing liabilities.
(4) Net interest margin is computed by dividing annualized net interest income
by total average assets
(5) Efficiency ratio is calculated by dividing non-interest expense by total
revenue, which equals the sum of net interest income and non-interest income.
FORBRIGHT, INC. AND SUBSIDIARIES
Average Balance Sheets
(Unaudited)
For the Three Months Ended
--------------------------------------------------------------------
June 30, 2026 March 31, 2026
--------------------------------- ---------------------------------
Average Average
Yields Yields
Interest Earned/ Interest Earned/
Average Income/ Rates Average Income/ Rates
(dollars in thousands) Balance Expense Paid(1) Balance Expense Paid(1)
------------------------ ----------- -------- ---------- ----------- -------- ----------
Assets:
Total loans held for
investment $5,409,608 $ 98,522 7.30% $5,214,460 $ 93,164 7.25%
Total loans
held-for-sale 427,940 8,484 7.95% 401,269 8,194 8.28%
--------- ------- --------- -------
Total loans 5,837,548 107,006 7.35% 5,615,729 101,358 7.32%
Total investment
securities 1,263,848 14,158 4.49% 1,291,428 14,099 4.43%
Interest-bearing
deposits with banks 787,320 7,252 3.69% 836,173 7,582 3.68%
Other earnings assets 50,661 648 5.13% 55,017 716 5.28%
--------- ------- --------- -------
Total
interest-earning
assets 7,939,377 129,064 6.52% 7,798,347 123,755 6.44%
Allowance for credit
losses (53,328) (52,686)
Other assets 336,948 276,876
--------- ---------
Total assets $8,222,997 $8,022,537
========= =========
Liabilities and
stockholders' equity
Interest-bearing
demand deposits $ 283,305 $ 2,442 3.46% $ 280,987 $ 2,433 3.51%
Money market deposits 1,403,392 13,138 3.75% 1,322,061 12,189 3.74%
Savings deposits 3,680,352 34,725 3.78% 3,538,759 33,108 3.79%
Time deposits 1,310,156 13,719 4.20% 1,398,063 14,565 4.23%
--------- ------- --------- -------
Total
interest-bearing
deposits 6,677,205 64,024 3.85% 6,539,870 62,295 3.86%
Subordinated debt, net 151,123 1,895 5.03% 151,034 1,902 5.11%
--------- ------- --------- -------
Total
interest-bearing
liabilities 6,828,328 65,919 3.87% 6,690,904 64,197 3.89%
Non-interest-bearing
demand deposits 408,649 372,965
Other liabilities 113,261 119,506
--------- ---------
Total liabilities 7,350,238 7,183,375
Stockholders' equity 872,759 839,162
--------- ---------
Total liabilities
and stockholders'
equity $8,222,997 $8,022,537
========= =========
Net interest income and
spread(2) $ 63,145 2.65% $ 59,558 2.55%
======= =======
Net interest margin(3) 3.19% 3.10%
__________________
(1) Annualized.
(2) Spread represents the difference between the annualized weighted average
yield on interest-earning assets and the annualized weighted average rate paid
on interest-bearing liabilities.
(3) Net interest margin is computed by dividing annualized net interest income
by total average assets.
FORBRIGHT, INC. AND SUBSIDIARIES
Average Balance Sheets
(Unaudited)
For the Six Months Ended
---------------------------------------------------------------------
June 30, 2026 June 30, 2025
--------------------------------- ----------------------------------
Average Average
Yields Yields
Interest Earned/ Interest Earned/
Average Income/ Rates Average Income/ Rates
(dollars in thousands) Balance Expense Paid(1) Balance Expense Paid(1)
------------------------ ----------- -------- ---------- ----------- -------- -----------
Assets:
Total loans held for
investment $5,312,573 $191,686 7.28% $4,208,175 $175,759 8.42%
Total loans
held-for-sale 414,679 16,678 8.11% 322,443 19,822 12.40%
--------- ------- --------- -------
Total loans 5,727,252 208,364 7.34% 4,530,618 195,581 8.71%
Total investment
securities 1,277,562 28,257 4.46% 1,404,102 32,261 4.63%
Interest-bearing
deposits with banks 811,610 14,834 3.69% 666,536 14,576 4.41%
Other earnings assets 52,827 1,364 5.21% 58,364 1,776 6.14%
--------- ------- --------- -------
Total
interest-earning
assets 7,869,251 252,819 6.48% 6,659,620 244,194 7.39%
Allowance for credit
losses (53,009) (43,706)
Other assets 307,033 218,093
--------- ---------
Total assets $8,123,275 $6,834,007
========= =========
Liabilities and
stockholders' equity
Interest-bearing
demand deposits $ 282,152 $ 4,875 3.48% $ 291,569 $ 5,378 3.72%
Money market deposits 1,362,951 25,327 3.75% 803,375 14,552 3.65%
Savings deposits 3,609,947 67,833 3.79% 2,586,584 53,819 4.20%
Time deposits 1,353,867 28,284 4.21% 1,847,148 41,456 4.53%
--------- ------- --------- -------
Total
interest-bearing
deposits 6,608,917 126,319 3.85% 5,528,676 115,205 4.20%
Subordinated debt, net 151,078 3,797 5.07% 174,488 4,942 5.71%
Other borrowings -- -- --% 56,389 1,266 4.53%
--------- ------- --------- -------
Total
interest-bearing
liabilities 6,759,995 130,116 3.88% 5,759,553 121,413 4.25%
Non-interest-bearing
demand deposits 390,906 252,346
Other liabilities 116,416 73,932
--------- ---------
Total liabilities 7,267,317 6,085,831
Stockholders' equity 855,958 748,175
--------- ---------
Total liabilities
and stockholders'
equity $8,123,275 $6,834,006
========= =========
Net interest income and
spread(2) $122,703 2.60% $122,781 3.14%
======= =======
Net interest margin(3) 3.14% 3.72%
__________________
(1) Annualized.
(2) Spread represents the difference between the annualized weighted average
yield on interest-earning assets and the annualized weighted average rate paid
on interest-bearing liabilities.
(3) Net interest margin is computed by dividing annualized net interest income
by total average assets.
FORBRIGHT, INC. AND SUBSIDIARIES
Loans Held for Investment at Amortized Cost
(Unaudited)
June 30, 2026 March 31, 2026 December 31, 2025
--------------------- --------------------- ---------------------
% of % of % of
total total total
(dollars in thousands) Amount loans Amount loans Amount loans
----------------------- ---------- --------- ---------- --------- ---------- ---------
Commercial Real Estate $2,849,478 50.9% $2,679,872 49.9% $2,528,996 48.4%
Commercial and
Industrial 2,541,275 45.4% 2,485,418 46.2% 2,475,549 47.4%
Consumer 205,119 3.7% 211,247 3.9% 217,689 4.2%
--------- --------- ---------
Total loans held for
investment at
amortized cost $5,595,872 100.0% $5,376,537 100.0% $5,222,234 100.0%
========= ========= =========
FORBRIGHT, INC. AND SUBSIDIARIES
Allowance for Credit Losses - Loans Held for Investment at Amortized Cost
(Unaudited)
As of and As of and
For the Three Months Ended For the Six Months Ended
------------------------------ ------------------------------
June 30, March 31, June 30, June 30,
(dollars in thousands) 2026 2026 2026 2025
----------------------- -------------- -------------- -------------- --------------
Average loans held for
investment outstanding,
at amortized cost $5,405,685 $5,209,705 $5,308,237 $4,200,938
Total loans held for
investment outstanding,
at amortized cost at
end of period $5,595,872 $5,376,537 $5,595,872 $4,476,367
ACL - Loans:
Beginning of period $ 52,794 $ 52,986 $ 52,986 $ 42,294
Provision for credit
losses on loans 4,521 3,867 8,388 11,519
Provision for credit
losses on loan
transfers from loans
held-for-sale -- 17 17 97
Loan charge-offs:
Commercial Real
Estate -- -- -- --
Commercial and
Industrial (1,736) (2,830) (4,566) (3,580)
Consumer (1,353) (2,057) (3,410) (3,446)
--------- --------- --------- ---------
Total
charge-offs (3,089) (4,887) (7,976) (7,026)
Loan recoveries:
Commercial Real
Estate -- -- -- --
Commercial and
Industrial 131 542 673 948
Consumer 264 269 533 476
--------- --------- --------- ---------
Total
recoveries 395 811 1,206 1,424
--------- --------- --------- ---------
Net charge-offs (2,694) (4,076) (6,770) (5,602)
--------- --------- --------- ---------
End of period $ 54,621 $ 52,794 $ 54,621 $ 48,308
========= ========= ========= =========
Ratio of ACL - Loans to
total loans at
amortized cost at
period end 0.98% 0.98% 0.98% 1.08%
Ratio of net charge-offs
to average total loans
at amortized cost (0.20)% (0.32)% (0.26)% (0.27)%
FORBRIGHT, INC. AND
SUBSIDIARIES Asset
Quality (Unaudited)
June 30, March 31, December 31,
(dollars in thousands) 2026 2026 2025
----------------------- ----------- ----------- ----------------
NON-PERFORMING ASSETS
Total non-accrual
loans:
Commercial Real
Estate $67,312 $66,804 $ 60,360
Commercial and
Industrial 19,498 15,984 11,798
Consumer 1,407 1,670 1,857
------ ------ --------
Total non-accrual
loans 88,217 84,458 74,015
Accruing loans 90 days
or more past due -- 1,762 --
Non-performing
financing receivables -- -- --
Other real estate owned 4,642 7,109 8,729
------ ------ --------
Total non-performing
assets $92,859 $93,329 $ 82,744
====== ====== ========
Total non-accrual loans
as a percentage of
total loans 1.45% 1.46% 1.32%
Total non-performing
financing receivables
as a percentage of
total financing
receivables --% --% --%
Total non-performing
assets as a percentage
of total assets 1.09% 1.13% 1.05%
NON-PERFORMING LOANS
HELD FOR INVESTMENT AT
AMORTIZED COST
Total non-accrual loans
held for investment at
amortized cost:
Commercial Real
Estate $67,312 $66,804 $ 60,361
Commercial and
Industrial 3,752 4,112 5,484
Consumer 1,407 1,670 1,857
------ ------ --------
Total non-accrual
loans 72,471 72,586 67,702
Accruing loans 90 days
or more past due -- 1,762 --
------ ------ --------
Total non-performing
loans held for
investment at
amortized cost $72,471 $74,348 $ 67,702
====== ====== ========
Total non-accrual loans
held for investment at
amortized cost to total
loans held for
investment at amortized
cost 1.30% 1.35% 1.30%
Total ACL - Loans to
total non-accrual loans
held for investment at
amortized cost 75.37% 72.73% 78.26%
Non-performing loans
held for investment at
amortized cost to total
loans held for
investment at amortized
cost 1.30% 1.38% 1.30%
FORBRIGHT, INC. AND SUBSIDIARIES
Investment Securities
(Unaudited)
June 30, 2026 March 31, 2026 December 31, 2025
------------------------ ------------------------ ------------------------
% of total % of total % of total
(dollars in thousands) Amount(1) securities Amount(1) securities Amount(1) securities
----------------------- ---------- ------------ ---------- ------------ ---------- ------------
Available-for-sale
securities:
U.S. Treasury and
government agencies $ 695,844 55.3% $ 776,453 60.4% $ 958,347 73.4%
Residential agency
mortgage-backed 312,973 24.8% 264,101 20.6% 139,077 10.7%
Commercial agency
mortgage-backed 182,856 14.5% 176,221 13.7% 136,070 10.4%
Municipal bonds 8,635 0.7% 8,498 0.7% 8,635 0.7%
Other 10,357 0.8% 10,326 0.8% 12,758 1.0%
--------- --------- ---------
Total investment
securities
available-for-sale $1,210,665 96.1% $1,235,599 96.2% $1,254,887 96.2%
Held-to-maturity
securities:
Municipal bonds $ 31,000 2.5% $ 31,200 2.4% $ 31,200 2.4%
Other 17,744 1.4% 17,744 1.4% 17,744 1.4%
--------- --------- ---------
Total investment
securities
held-to-maturity $ 48,744 3.9% $ 48,944 3.8% $ 48,944 3.8%
--------- --------- ---------
Total
investment
securities $1,259,409 100.0% $1,284,543 100.0% $1,303,831 100.0%
========= ========= =========
__________________
(1) Available-for-sale investment securities are reported at fair value and
held-to-maturity investment securities are reported at amortized cost.
FORBRIGHT, INC. AND SUBSIDIARIES
Deposits
(Unaudited)
June 30, 2026 March 31, 2026 December 31, 2025
--------------------- --------------------- ---------------------
% of % of % of
(dollars in thousands) Amount total Amount total Amount total
----------------------- ---------- --------- ---------- --------- ---------- ---------
Non-interest-bearing
deposits $ 435,065 6.0% $ 473,153 6.6% $ 372,444 5.5%
Interest-bearing
deposits:
Demand 284,748 3.9% 287,356 4.0% 275,259 4.1%
Money market 1,394,865 19.2% 1,424,548 20.0% 1,206,544 17.8%
Savings 3,878,206 53.4% 3,607,617 50.6% 3,500,532 51.6%
Time deposits 1,272,951 17.5% 1,345,534 18.8% 1,423,136 21.0%
--------- --------- ---------
Total
interest-bearing
deposits 6,830,770 94.0% 6,665,055 93.4% 6,405,471 94.5%
--------- --------- ---------
Total deposits $7,265,835 100.0% $7,138,208 100.0% $6,777,915 100.0%
========= ========= =========
FORBRIGHT, INC. AND SUBSIDIARIES
Capital Ratios
(Unaudited)
June 30, March 31, December 31,
2026(1) 2026 2025
------------------------------------ -------- --------- ------------
Company:
Tier 1 leverage ratio 10.38 % 8.92 % 9.79 %
Total capital to risk-weighted
assets ratio 16.05 % 14.68 % 15.89 %
Tier 1 capital to risk-weighted
assets ratio 12.97 % 11.47 % 12.72 %
Common Equity Tier 1 to risk
weighted-assets ratio 12.97 % 11.47 % 12.72 %
Bank:
Tier 1 leverage ratio 11.24 % 10.19 % 11.11 %
Total capital to risk-weighted
assets ratio 14.98 % 14.01 % 15.14 %
Tier 1 capital to risk-weighted
assets ratio 14.08 % 13.11 % 14.37 %
Common Equity Tier 1 to risk
weighted-assets ratio 14.08 % 13.11 % 14.37 %
__________________
(1) Regulatory capital ratios as of June 30, 2026 are preliminary pending
filing of regulatory reports.
FORBRIGHT, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(Unaudited)
This earnings release contains "non-GAAP financial measures" within the
meaning of Item 10(e) of Regulation S-K. Non-GAAP financial measures are
financial measures that are not presented in accordance with GAAP. We use
these non-GAAP financial measures in the internal evaluation of our
performance and management of our business as well as to explain our results
of operations to stockholders and the wider investment community. The
following non-GAAP financial measures appear in this earnings release:
Tangible common equity - We calculate tangible common equity by deducting
goodwill and other intangible assets from stockholder's equity. Tangible
common equity per common share - We calculate tangible common equity per
common share by dividing tangible common equity, as defined above, by our
average common shares outstanding for the period, excluding the dilutive
effect of outstanding stock options, and including the effect of outstanding
shares from restricted stock awards. Return on average tangible common equity
- We calculate return on average tangible common equity by dividing net income
for the period plus intangible asset amortization on an after-tax basis, by
average tangible common equity over the same period. Adjusted net income, used
for the calculation of return on average tangible common equity, is calculated
by deducting the tax effected amount of intangible asset amortization from net
income. Non-core gains/(losses) on sales of loans and investment securities,
net - We calculate non-core gains/(losses) on sales of loans and investment
securities, net by deducting gains from sales of loans to Alliance Partners
from gains/(losses) on sales of loans and investment securities, net, as
reported on the Consolidated Statements of Income. Core and non-core
non-interest income - Core non-interest income equals total non-interest
income less (a) non-core gains/(losses) on sales of loan and investment
securities, net, (b) unrealized gains on loans and financing receivables, net,
(c) rental income and (d) other income. Non-core non-interest income equals
total non-interest income less core non-interest income. Adjusted total
revenue - We calculate adjusted total revenue by deducting non-core
non-interest income from total revenue. Pre Provision Net Revenue - We
calculate pre provision net revenue by adding provision for credit losses to
income before income taxes.
Our management believes that these non-GAAP financial measures and the
information they provide are useful to investors because these measures allow
investors to view our performance in the same manner our management evaluates
performance. Although we believe these non-GAAP financial measures are useful
in evaluating our performance, these non-GAAP financial measures should not be
considered in isolation or as a substitution for the most directly comparable
or other financial measures presented in this earnings release under GAAP.
Additionally, the manner in which we calculate these non-GAAP financial
measures may be different from how other companies calculate financial
measures with similar names.
FORBRIGHT, INC. AND
SUBSIDIARIES Non-GAAP
Financial Measures -
(continued)
(Unaudited)
As of and As of and
For the Three Months Ended For the Six Months Ended
-------------------------------- --------------------------------
(dollars in thousands, June 30, March 31, June 30, June 30,
except per share data) 2026 2026 2026 2025
----------------------- --------------- --------------- --------------- ---------------
Tangible common equity
Stockholders' equity
(GAAP) $ 967,163 $ 831,195 $ 967,163 $ 752,296
Less:
Goodwill 18,519 18,519 18,519 18,519
Other intangible
assets 17,445 12,883 17,445 13,847
---------- ---------- ---------- ----------
Tangible common
equity
(non-GAAP) $ 931,199 $ 799,793 $ 931,199 $ 719,930
---------- ---------- ---------- ----------
Total common shares
outstanding 49,697,208 40,847,557 49,697,208 40,658,442
Stockholders'
equity per total
common share
outstanding
(GAAP) $ 19.46 $ 20.35 $ 19.46 $ 18.50
Tangible common
equity per total
common share
outstanding
(non-GAAP) $ 18.74 $ 19.58 $ 18.74 $ 17.71
Return on average
tangible common equity
Average stockholders
equity (GAAP) $ 872,759 $ 839,162 $ 855,958 $ 748,175
Less:
Average goodwill 18,519 18,519 18,519 18,519
Average other
intangible
assets 12,839 13,069 12,953 14,239
---------- ---------- ---------- ----------
Average tangible
common equity
(non-GAAP) $ 841,401 $ 807,574 $ 824,486 $ 715,417
---------- ---------- ---------- ----------
Net income (GAAP) $ 4,122 $ 11,632 $ 15,754 $ 26,236
Add:
Intangible asset
amortization, net
of tax 476 210 686 505
---------- ---------- ---------- ----------
Adjusted net
income
(non-GAAP) $ 4,598 $ 11,842 $ 16,440 $ 26,741
---------- ---------- ---------- ----------
Return on average
stockholders'
equity (GAAP) 1.89% 5.62% 3.71% 7.07%
Return on average
tangible common
equity
(non-GAAP) 2.19% 5.95% 4.02% 7.54%
Non-core (losses)/gains
on sales of loans and
investment securities,
net (non-GAAP)
Gains/(losses) on
sales of loans and
investment
securities, net
(GAAP) $ 252 $ (34) $ 218 $ 2,170
Less:
Gains on sales of
loans by Alliance
Partners 252 253 505 1,024
---------- ---------- ---------- ----------
Non-core
(losses)/gains on
sales of loans
and investment
securities, net
(non-GAAP) $ -- $ (287) $ (287) $ 1,146
========== ========== ========== ==========
FORBRIGHT, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures - (continued)
(Unaudited)
As of and For the Three As of and
Months Ended For the Six Months Ended
-------------------------- ---------------------------
(dollars in thousands, June 30, March 31, June 30, June 30,
except per share data) 2026 2026 2026 2025
------------------------- ------------ ------------ ------------- ------------
Core and non-core
non-interest income
Non-interest income
(GAAP) $21,846 $15,584 $ 37,430 $ 25,292
Less:
Non-core
(losses)/gains on
sales of loans and
investment
securities, net
(non-GAAP) -- (287) (287) 1,146
Unrealized
(losses)/gains on
loans and financing
receivables, net (963) (1,335) (2,298) 2,746
Rental income 1,225 -- 1,225 --
Other (included in
other non-interest
income) (137) (756) (893) (91)
------ ------ ------- -------
Core non-interest
income
(non-GAAP) $21,721 $17,962 $ 39,683 $ 21,491
------ --- ------ --- ------- --- -------
Non-core
non-interest
income
(non-GAAP) $ 125 $(2,378) $ (2,253) $ 3,801
------ --- ------ ------- -------
Adjusted total revenue
Net interest income $63,145 $59,558 $122,703 $122,781
Non-interest income 21,846 15,584 37,430 25,292
------ --- ------ --- ------- --- -------
Total Revenue (GAAP) $84,991 $75,142 $160,133 $148,073
------ --- ------ --- ------- --- -------
Less:
Non-core
non-interest
income
(non-GAAP) 125 (2,378) (2,253) 3,801
------ --- ------ ------- -------
Adjusted total
revenue
(non-GAAP) $84,866 $77,520 $162,386 $144,272
------ --- ------ --- ------- --- -------
Non-interest
income to total
revenue (GAAP) 25.7% 20.7% 23.4% 17.1%
Core non-interest
income to
adjusted total
revenue
(non-GAAP) 25.6% 23.2% 24.4% 14.9%
Pre Provision Net Revenue
(non-GAAP)
Income before income
taxes (GAAP) $13,316 $13,212 $ 26,528 $ 35,609
Add:
Provision for
credit losses 5,899 3,473 9,372 12,549
------ --- ------ --- ------- --- -------
Pre Provision
Net Revenue
(non-GAAP) $19,215 $16,685 $ 35,900 $ 48,158
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CONTACT:
INVESTOR & MEDIA CONTACT: Ben Wakana, Chief Public Affairs and Investor Relations Officer | 207-551-7415 | bwakana@forbrightbank.com