Forbright (NASDAQ:FRBT) Releases Earnings Results, Misses Expectations By $0.04 EPS

Key Points

• Forbright reported quarterly EPS of $0.09, missing the $0.13 consensus estimate by $0.04.
• Loan growth accelerated by approximately $275 million, while digital deposits rose 9% quarter over quarter to more than 100,000 accounts. Credit quality remained strong, with core net charge-offs at just 8 basis points.
• Higher expenses—including a $3.9 million employee-retention charge—and a 69% quarterly tax rate pressured earnings, though management expects the tax rate to decline to about 20% in the second half of 2026.

Forbright (NASDAQ:FRBT - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.09 earnings per share for the quarter, missing the consensus estimate 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 Stock Performance

Shares of FRBT remained flat at $19.63 during trading hours on Thursday. The company had a trading volume of 61,411 shares, compared to its average volume of 134,066. Forbright has a 12 month low of $17.48 and a 12 month high of $22.00.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on FRBT. JPMorgan Chase & Co. initiated coverage on Forbright in a research note on Monday, July 6th. They issued a "neutral" rating and a $21.00 price objective on the stock. TD Cowen began coverage on shares of Forbright in a research note on Monday, July 6th. They set a "buy" rating on the stock. The Goldman Sachs Group assumed coverage on shares of Forbright in a report on Monday, July 6th. They issued a "buy" rating and a $23.50 price target for the company. Wells Fargo & Company assumed coverage on shares of Forbright in a research note on Monday, July 6th. They issued an "overweight" rating and a $21.00 price target for the company. Finally, Zacks Research upgraded shares of Forbright to a "hold" rating in a report on Tuesday, July 7th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $22.00.

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