Forbright (FRBT) investor relations material

Executive summary

• Net interest income rose to $63.1M in Q2 2026, with net interest margin expanding to 3.19% and total loans reaching $6.1B, driven by healthcare and lender finance verticals and strong digital deposit growth.

• Net income for Q2 was $4.1M ($0.09–$0.10 per diluted share), down from Q1 due to a $5.6M deferred tax asset write-down and IPO-related expenses.

• Digital deposit platform surpassed 100,000 accounts, with 9% quarter-over-quarter growth and 90% FDIC insured; digital deposit promotion outperformed expectations.

• Completed IPO in June 2026, raising $131M in net proceeds, with an additional $17–$18M from the over-allotment option in July.

• Credit trends remained favorable, with core net charge-offs at 0.08% and non-performing assets stable.

Financial highlights

• Net interest income for H1 2026 was $122.7M, nearly flat year-over-year; non-interest income for Q2 was $21.8M, up 40.2% sequentially, driven by solar servicing fees and FHA/HUD originations.

• Efficiency ratio was 77.4%–77.6% in Q2, up from prior year, with a medium-term target of 50% or below.

• Return on average tangible common equity was 2.19% in Q2 and 4.02% for H1 2026, both down from prior periods.

• Non-interest expense increased due to personnel retention, IPO, and headquarters-related costs.

• Total assets reached $8.5B at June 30, 2026, up $272M sequentially.

Outlook and guidance

• Management expects second half loan growth to exceed first half, with strong pipelines in all lending verticals and continued investment in digital banking and technology.

• Digital checking product on track for national launch in Q1 2027, with gradual balance build expected.

• Efficiency ratio targeted to move from 77% in Q2 to 50% or below in the medium term; expense management initiatives on track for 2027 targets.

• Tax rate estimated at 20% for H2 2026 and 17.5% for FY 2027, net of deferred credit accretion.

• Deposit growth expected to remain primary liquidity source, but future growth may require increased wholesale funding if trends change.