Forbright (NASDAQ:FRBT) Announces Earnings Results

Forbright (NASDAQ:FRBT) issued its earnings results on Thursday. The company reported $0.09 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.04), Zacks reports.

Here are the key takeaways from Forbright’s conference call:

• Positive Sentiment: Loan growth accelerated, with total loans increasing by approximately $275 million and $1.2 billion in new or upsized commitments. Management expects growth to accelerate further in the second half of 2026, supported by strong pipelines across healthcare, lender finance, commercial real estate, and the newly launched asset-finance business.
• Positive Sentiment: Credit performance remained strong, with core net charge-offs at 8 basis points and total net charge-offs declining to $2.7 million from $4.1 million in Q1. Management said national lending portfolios are performing well, though remaining credit issues are concentrated in shrinking legacy portfolios.
• Positive Sentiment: Digital deposits grew 9% quarter over quarter, surpassing 100,000 accounts, with roughly 90% FDIC insured. The new promotional deposit capability exceeded expectations, potentially allowing Forbright to grow deposits ahead of plan and reduce funding costs sooner than anticipated.
• Positive Sentiment: Net interest income increased 6% to $63.1 million, while net interest margin expanded 9 basis points as loan yields improved modestly and funding costs declined. Management also expects additional funding-cost benefits after Q3 as stronger deposit growth reduces reliance on higher-cost funding.
• Negative Sentiment: Reported net income was affected by higher expenses and taxes, including a $3.9 million employee-retention charge, $3.2 million of solar-servicing pass-through expenses, $900,000 of headquarters-related costs, and a 69% quarterly tax rate. Management expects the tax rate to fall to approximately 20% in the second half of 2026 and continues targeting a medium-term efficiency ratio of 50% or below.

Forbright Trading Up 0.6%

NASDAQ FRBT traded up $0.12 on Thursday, reaching $19.75. 73,007 shares of the company’s stock traded hands, compared to its average volume of 134,274. Forbright has a 12 month low of $17.48 and a 12 month high of $22.00.

Wall Street Analysts Forecast Growth

FRBT has been the subject of several recent research reports. The Goldman Sachs Group started coverage on Forbright in a research report on Monday, July 6th. They issued a “buy” rating and a $23.50 price target for the company. Piper Sandler assumed coverage on Forbright in a research note on Monday, July 6th. They issued a “neutral” rating and a $21.50 target price for the company. Barclays started coverage on Forbright in a report on Monday, July 6th. They set an “overweight” rating and a $23.00 target price for the company. JPMorgan Chase & Co. began coverage on shares of Forbright in a report on Monday, July 6th. They set a “neutral” rating and a $21.00 target price on the stock. Finally, TD Cowen assumed coverage on shares of Forbright in a research report on Monday, July 6th. They set a “buy” rating for the company. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Forbright has a consensus rating of “Moderate Buy” and a consensus price target of $22.00.