Forbright (FRBT) investor relations material

Executive summary

• Net income was $20.6 million, or $0.41 per diluted share; net interest income rose 13.9% QoQ to $72.0 million, while NIM was 3.18%, down 1 bp QoQ.

• Loans grew 9.5% QoQ and 24% YoY to $6.6 billion, supported by more than $1 billion in quarterly originations; digital deposits grew 24.5% QoQ.

• Credit indicators improved, with core net charge-offs at 3 bps; management cited disciplined growth, digital funding and efficiency progress as strengths.

Financial highlights

• Total revenue was $101.1 million, up 18.9% QoQ; non-interest income was $29.1 million, including $17.1 million of adjusted core non-interest income and $12.0 million of non-core income.

• Adjusted PPNR increased 59.6% QoQ to $30.7 million; provision for credit losses fell $4.4 million to $1.5 million.

• Non-interest expense rose 7.0% QoQ to $70.4 million, primarily from performance-related compensation; the efficiency ratio improved to 69.65% from 77.39%.

• Total assets were $9.6 billion, with $7.6 billion in deposits, $6.6 billion in loans and $1.1 billion in investment securities at quarter-end.

Outlook and guidance

• Strong loan growth is expected in Q4 and into Q1 2027, likely below Q3’s pace; longer-term loan growth planning centers on ~15% annually.

• Q4 NIM is expected to expand; gradual longer-term improvement is anticipated from better funding spreads and a higher loan-to-deposit ratio.

• 2027 expenses are expected to remain largely flat excluding reimbursable Solar Servicing costs; efficiency targets remain on track, with savings redeployed to digital banking.

• Estimated tax rates are ~20% in Q4 2026 and ~19% in FY 2027, each net of ~9% deferred-credit amortization; core annualized charge-off forecast remains 25 bps.