Forbright (FRBT) investor relations material

Executive summary

• Achieved strong loan growth, with total loans reaching $6.1B and a 4.8% sequential increase, led by healthcare and lender finance verticals and supported by diversified lending strategies.

• Net interest income rose to $63.1M in Q2 2026, with net interest margin expanding to 3.19% from 3.10%, driven by improved asset mix and lower cost of funds.

• Digital deposit platform surpassed 100,000 accounts, with digital deposit balances growing 9.1% quarter-over-quarter and 90% FDIC insured.

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

• Completed IPO, raising $131M in net proceeds and increasing capital ratios; additional $18M overallotment proceeds to be reflected in Q3.

Financial highlights

• Net income for Q2 was $4.1M ($0.09 per diluted share), down 64.6% sequentially due to a $5.6M deferred tax asset write-down and IPO-related expenses.

• Net interest income rose 6% to $63.1M, with total revenue up 13.1% to $85.0M and non-interest income up 40.2% to $21.8M.

• Pre-provision net revenue increased 15% from Q1 to $19.2M.

• Efficiency ratio improved to 77.39% in Q2 2026, with a medium-term target of 50% or below.

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

Outlook and guidance

• Expect second half loan growth to exceed first half, with strong pipelines in all lending verticals and a focus on prudent loan and fee growth.

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

• Medium-term targets include annual loan growth of 15%, efficiency ratio below 50%, and run-rate ROATCE of 15%.

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

• Expense management initiatives are on track to meet 2027 targets, with cost of funds improvement expected to accelerate post-Q3.