Forbright, Inc. Reports Second Quarter 2026 Results

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

net charge-offs financial

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

deferred tax assets financial

An item on a company’s balance sheet showing tax benefits it can use later to reduce future tax bills — think of it as an IOU from the tax system for past losses or timing differences. It matters to investors because it can boost future cash flow and apparent value if the company expects profits ahead, but those benefits vanish if the company cannot generate taxable income and the asset must be reduced.

non-gaap financial measure financial

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

api-driven technology stack technical

An API-driven technology stack is a set of software layers and services designed so each component talks to others through well-defined application programming interfaces (APIs). Think of it like modular appliances in a kitchen that connect with standard plugs—individual pieces can be swapped, updated, or combined without rebuilding the whole system. Investors pay attention because such stacks tend to enable faster product changes, easier partnerships and integrations, and clearer operational scalability and cost visibility.

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Net interest income increased to $63.1 million

Net interest margin increased to 3.19%

Total loans grew to $6.1 billion

Total deposits rose to $7.3 billion

Credit trends remained favorable

CHEVY CHASE, Md.--(BUSINESS WIRE)-- Forbright, Inc. (Nasdaq FRBT):

Fellow Shareholders,

Forbright, Inc. (Nasdaq FRBT) ("Forbright," the "Company," "we," "our," or "us") wants to begin by welcoming our new shareholders. Because this is our first letter, we will spend more time discussing our strategy, the market opportunity, and our plan to create long-term shareholder value. We think it is important to set the table clearly: how the market is evolving, why we are positioned to capitalize on those changes, and the decisions we are making to compound value over time.

Alongside the numbers, we will tell you plainly how we see the business and the opportunity ahead. We will write to you the way we would want someone to write to us if our positions were reversed. Like us, you are owners, and owners deserve the same candor and clarity we would demand ourselves. We believe candid communication builds trust and strengthens companies.

We will begin, where we should, with the numbers:

Forbright, Inc. is the parent company of wholly-owned subsidiary Forbright Bank (the "Bank"), and we are reporting today financial results for the second quarter ended June 30, 2026. The Company reported net income of $4.1 million, or $0.10 of basic earnings per outstanding voting and non-voting common share and $0.09 of diluted earnings per outstanding voting and non-voting common share for the three months ended June 30, 2026, compared to net income of $11.6 million, or $0.29 of basic earnings per outstanding voting and non-voting common share and $0.27 of diluted earnings per outstanding voting and non-voting common share for the three months ended March 31, 2026.

These results are consistent with our expectations and include one-time costs for a $5.6 million write-down of compensation related deferred tax assets, due to tax rules that now apply since we are a public company, and other IPO expenses of $0.9 million and $3.1 million, respectively, for the three and six months ended June 30, 2026.

Quarter-over-Quarter			Year-over-Year
■	Net interest income was $63.1 million for the three months ended June 30, 2026, an increase of $3.6 million from the three months ended March 31, 2026.		■	Net interest income was $122.7 million for the six months ended June 30, 2026, a decrease of $0.1 million from the six months ended June 30, 2025.
■	Provision for credit losses was $5.9 million for the three months ended June 30, 2026, compared to $3.5 million for the three months ended March 31, 2026. Ratio of net charge-offs to average total loans at amortized cost was 0.20% for the three months ended June 30, 2026, compared to 0.32% for the three months ended March 31, 2026.		■	Provision for credit losses was $9.4 million for the six months ended June 30, 2026, compared to $12.5 million for the six months ended June 30, 2025. Ratio of net charge-offs to average total loans at amortized cost was 0.26% for the six months ended June 30, 2026, compared to 0.27% for the six months ended June 30, 2025.
■	Net interest margin was 3.19% for the three months ended June 30, 2026, an increase of 9 basis points from the three months ended March 31, 2026.		■	Net interest margin was 3.14% for the six months ended June 30, 2026, a decrease of 58 basis points from the six months ended June 30, 2025.
■	Efficiency ratio was 77.39% for the three months ended June 30, 2026, compared to 77.80% for the three months ended March 31, 2026.		■	Efficiency ratio was 77.58% for the six months ended June 30, 2026, compared to 67.48% for the six months ended June 30, 2025.
■	Return on average stockholders' equity was 1.89% for the three months ended June 30, 2026, compared to 5.62% for the three months ended March 31, 2026.		■	Return on average stockholders' equity was 3.71% for the six months ended June 30, 2026, compared to 7.07% for the six months ended June 30, 2025.
■	Return on average tangible common equity(1) was 2.19% for the three months ended June 30, 2026, compared to 5.95% for the three months ended March 31, 2026.		■	Return on average tangible common equity(1) was 4.02% for the six months ended June 30, 2026, compared to 7.54% for the six months ended June 30, 2025.
■	Non-interest income was $21.8 million for the three months ended June 30, 2026, compared to $15.6 million for the three months ended March 31, 2026.		■	Non-interest income was $37.4 million for the six months ended June 30, 2026, compared to $25.3 million for the six months ended June 30, 2025.
■	Core non-interest income(1) was $21.7 million for the three months ended June 30, 2026, compared to $18.0 million for the three months ended March 31, 2026.		■	Core non-interest income(1) was $39.7 million for the six months ended June 30, 2026, compared to $21.5 million for the six months ended June 30, 2025.

__________________ (1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most directly comparable GAAP measure.

BALANCE SHEET SUMMARY

Total assets increased $272.4 million to $8.5 billion as of June 30, 2026, from $8.2 billion as of March 31, 2026. The increase in assets was due primarily to loan growth.

Loans

Total loans were $6.1 billion as of June 30, 2026, an increase of $276.1 million from $5.8 billion as of March 31, 2026. The increase in loans was due primarily to new originations and balance increases in Lender Finance within Commercial and Industrial and Real Estate Finance within Commercial Real Estate held for investment loans, as well as new originations of Corporate Finance within Commercial and Industrial loans held-for-sale.

Investment Securities

Total carrying amount of investment securities was $1.3 billion as of June 30, 2026, compared to $1.3 billion as of March 31, 2026. Investment securities remained flat with maturities of U.S. Treasury securities replaced with purchases of Residential and Commercial Agency Mortgage-backed securities.

Deposits

Total deposits were $7.3 billion as of June 30, 2026, compared to $7.1 billion as of March 31, 2026. The increase in deposits was due primarily to an increase in Digital Banking deposits offset partially by maturing wholesale certificates of deposit.

Borrowed Funds

Total borrowed funds were $151.2 million as of June 30, 2026, compared to $151.1 million as of March 31, 2026.

Stockholders' Equity

Total stockholders' equity was $967.2 million as of June 30, 2026, compared to $831.2 million as of March 31, 2026. The increase was primarily driven by the issuance of 7.9 million shares of common stock resulting in proceeds, net of issuance costs, of $131.0 million in connection with the Company's initial public offering.

OUR VIEW

Loan growth for the quarter was strong and generally balanced across our lending strategies with Healthcare Finance and Lender Finance having the largest shares of our nearly $1.2 billion in new and upsized loan commitments for the quarter. We continue to see a competitive market environment for loans, with spreads and structures stable compared with recent quarters. Our sector-focused lending strategies are finding attractive opportunities and we benefit from a strong, high-quality pipeline across all our strategies. We were also pleased that our newly launched Asset Finance strategy closed its first equipment financing transaction in June, a few months ahead of plan.

In our fee businesses, closings in our FHA/HUD business were behind plan, as several transactions moved into the third quarter due to processing backlogs at the FHA. Alliance Partners was behind plan, but we are hopeful that additional loan types in the pipeline can support continued growth.

Deposit growth was on track during the quarter, and our new deposit promotion capability launched mid-June. This initial promotion in our digital bank has exceeded expectations, and is helping drive deposit growth well ahead of plan thus far in the third quarter.

The credit metrics we track most closely remained favorable during the second quarter. Our national lending strategies continue to perform very well from a credit perspective, with our limited stressed loans concentrated in our discontinued and shrinking legacy community bank portfolio.

We remained focused on expense management and are on track to meet our 2027 expense targets. This quarter showed good progress towards those goals.

We view the broader economy as benefiting from significant AI-related capital spending and inflation likely remaining elevated, driven mostly by geopolitical conflicts. We have very little credit exposure to the AI economy, which we view as an unattractive credit opportunity, or to software businesses that could be disrupted by new technologies. In general, broader economic conditions, while a consideration, are not central to our credit decisions, which rely on rigorous and disciplined bottom-up underwriting of asset values and cash flows.

FORBRIGHT: PURPOSE BUILT FOR THE FUTURE

Forbright sits at the intersection of two structural shifts reshaping U.S. banking. Each is durable and accelerating, and together they provide long-lasting momentum to our business model: a technology-enabled national deposit platform funding nationally sourced, sector-focused commercial lending. We pair this with a disciplined approach to maximizing returns on capital through prudent balance sheet allocation, risk-based pricing, and robust risk management. The result is the potential for long-duration growth in an exceptionally large addressable market, with stronger risk-adjusted return potential than legacy banks.

Deposits Moving from Branch-Based to Digital

The deposit market is moving out of bank branches and into digital banks. Deposits held by direct banks increased from less than 1% in 2000 to approximately 10% as of December 31, 2025, according to the FFIEC and the Federal Reserve. Consistent with this increase, approximately 75% of American consumers in October 2025 preferred managing their bank accounts digitally, according to a survey by the American Bankers Association.

Forbright embodies this evolution. We gather deposits nationally without the fixed costs of real estate and branch staff, allowing us to return more to depositors in rate and service while running at an attractive all-in cost of funds. Our platform is built on a modern, API-driven technology stack rather than legacy core infrastructure, so it scales at low marginal cost and integrates new technologies quickly.

We believe AI will accelerate this shift by lowering the cost and raising the quality of deposit-gathering and the disruption is about to intensify as AI agents that maximize deposit yields for consumers gain widespread adoption. JPMorgan's "Smart Cash," for instance, automatically sweeps idle balances into higher-yielding accounts. As these agents proliferate, they strip away the inertia that lets branch banks hold large balances in low- or no-interest accounts. Money will move fluidly to whoever offers a fair rate through the cleanest digital rails - a clear advantage for digitally native banks like Forbright.

The Increasing Sophistication of Commercial Lending

The U.S. economy has grown far more complex, and a more sophisticated economy generates more heterogeneous risk - risk that cannot be underwritten by a generalist credit box or a "one size fits all" credit underwriting criteria. Knowing whether a business will repay now requires genuine domain expertise: a client's revenue durability, competitive moat, regulatory exposure, and what its collateral is worth in a downturn. And because commercial businesses are increasingly national in scope, geography matters far less in how they choose banking partners.

As a result, we see bank lending as bifurcating. Commoditized credit will flow to whoever has scale and automation; commercial credit will flow to whoever has the deepest expertise and most attractive funding. Specialization earns premium spreads precisely because fewer do it, and produces better outcomes because the lender understands the risk. Forbright's six national, specialized lending strategies - led by deeply experienced teams with centralized risk and credit management - let us find, structure, and fund only the strongest deals while diversifying away single-region and industry concentration.

A Better Deal for Consumers Means a Higher Bar for Banks

For consumers, this shift is unambiguously beneficial. Digital competition and yield-seeking agents make it effortless to capture a fair rate, ending the era when banks benefited from idle, underpaid balances. We believe more than $50 billion a year in additional interest would flow to consumers if this shift were complete. As switching costs fall toward zero, banks can no longer rely on inertia for cheap funding — a profoundly healthy correction and a threat to business models built on not delivering fair value to depositors.

Fairly priced funding raises the bar on the other side of the balance sheet. To prosper, a bank must earn more on its assets through well-underwritten, higher-yielding loans; generate fee income that does not depend on a deposit subsidy; and operate free of expensive legacy infrastructure. This is the model Forbright was built to execute: lending nationally through multiple strategies competing for capital on risk-adjusted returns, complemented by capital-light fee income from syndication, advisory, and asset management, all on a branch-light, technology-enabled platform designed for efficiency.

The Road Ahead

The road ahead is straightforward. Our digital banking platform has significant capacity to grow, and each of our national lending businesses can scale meaningfully. Because our operating infrastructure is already built, every incremental loan and deposit carries only marginal cost - so growth drives dramatic improvement in operating efficiency, and AI could lower costs further still. None of this is accidental. It is the product of deliberate design, disciplined execution, and a long-term commitment to building an enduring franchise.

2026 FOCUS

For the remainder of the year, our priorities are clear: drive prudent loan and fee growth across our six lending strategies and fee businesses; lower our cost of funds through the new promotion capability; successfully stand up our digital checking and payments product; and advance additional expense initiatives to improve operating efficiency.

At the same time, we are actively exploring adjacent opportunities where our deposit technology platform could provide a distinct advantage as AI reshapes the deposit market. We will evaluate these opportunities with discipline, but once the path is clear, we plan to pursue them with ambition.

COMPARISONS

Quarter-over-Quarter

Net Interest Income

Net interest income was $63.1 million for the three months ended June 30, 2026, compared to $59.6 million for the three months ended March 31, 2026, an increase of $3.6 million. The change reflects an increase in interest income of $5.3 million compared to an increase in interest expense of $1.7 million.

Total interest income increased $5.3 million to $129.1 million for the three months ended June 30, 2026, from $123.8 million for the three months ended March 31, 2026. The increase was due primarily to growth in average loans which increased 3.9% compared to the prior quarter. The remaining increase was largely due to a three basis point increase in loan yields and the benefit of one additional day in the quarter.

Total interest expense increased $1.7 million to $65.9 million for the three months ended June 30, 2026, from $64.2 million for the three months ended March 31, 2026. The increase in interest expense was due primarily to an increase in Digital Banking and third party sweeps balances, and an additional day in the quarter, offset partially by lower wholesale certificates of deposit balances and a two basis point decline in the cost of interest-bearing liabilities.

Net interest margin was 3.19% for the three months ended June 30, 2026, compared to 3.10% for the three months ended March 31, 2026, due primarily to an eight basis point increase in the yield on earning-assets, reflecting favorable asset mix and higher loan yields, and a four basis point decrease in cost of funds, reflecting higher non-interest-bearing deposit balances and a two basis point decline in the cost of interest-bearing liabilities.

Provision for Credit Losses

The Company recorded a provision for credit losses of $5.9 million for the three months ended June 30, 2026 compared to a provision of $3.5 million for the three months ended March 31, 2026. The provision for credit losses for the three months ended June 30, 2026 was driven by an increase in the allowance for credit losses on loans ("ACL – Loans") of $1.8 million, net charge-offs of $2.7 million, and an increase in the allowance for credit losses on unfunded commitments ("ACL – Unfunded") of $1.4 million. The provision for credit losses for the three months ended March 31, 2026 was driven by a decrease in the ACL – Loans of $0.2 million, net charge-offs of $4.1 million, and a reduction in the ACL – Unfunded of $0.4 million. Net charge-offs for the quarterly periods that relate to legacy Consumer and Commercial and Industrial forward flow loans were $1.7 million and $3.1 million, respectively for the three months ended June 30, 2026 and March 31, 2026.

Non-interest Income

Total non-interest income was $21.8 million for the three months ended June 30, 2026, compared to $15.6 million for the three months ended March 31, 2026. The increase of $6.3 million was due primarily to solar loan administration fees related to the solar servicing business, an increase in FHA/HUD originations, rental income from other tenants in our headquarters building, following our acquisition in April 2026, and realized and unrealized gains on loans and other real estate owned assets.

Core non-interest income⁽¹⁾ was $21.7 million for the three months ended June 30, 2026, compared to $18.0 million for the three months ended March 31, 2026. The increase of $3.8 million was primarily due to the items noted for total non-interest income related to FHA/HUD fees and solar servicing income.

Non-interest Expense

Total non-interest expense was $65.8 million for the three months ended June 30, 2026 compared to $58.5 million for the three months ended March 31, 2026. The increase of $7.3 million was due primarily to the combination of (i) the personnel retention compensation program implemented in connection with our initial public offering, (ii) legal fees and sub-servicer fees related to the Solar Servicing business, which are largely reimbursed by counterparties to the loans and recognized in other non-interest income, and (iii) expenses related to the ownership of the Company’s headquarters following the building acquisition in April 2026.

Income Taxes

Income tax expense was $9.2 million for the three months ended June 30, 2026, resulting in an effective tax rate of 69.0%, compared to income tax expense of $1.6 million and an effective tax rate of 12.0% for the three months ended March 31, 2026. Income tax expense for the three months ended June 30, 2026 includes (i) a $5.6 million write-down of deferred tax assets as of December 31, 2025 for stock compensation in connection with the initial public offering, which is due to tax rules that limit executive compensation deductions for companies with publicly traded securities, and (ii) a $1.1 million benefit for accretion of the deferred credit, compared to a benefit of $1.7 million for the three months ended March 31, 2026.

The effective tax rate for the three months ended June 30, 2026 was 69.0%, compared to 12.0% for the three months ended March 31, 2026. For the three months ended June 30, 2026, the effective tax rate was increased by 42.3% related to the one-time deferred tax asset adjustment for stock compensation, offset by a reduction of 8.6% related to accretion of the deferred credit. The effective tax rate for the three months ended March 31, 2026 was reduced by 13.0% related to accretion of the deferred credit during that period.

__________________ (1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most directly comparable GAAP measure.

Year-over-Year

Net Interest Income

Net interest income was $122.7 million for the six months ended June 30, 2026, compared to $122.8 million for the six months ended June 30, 2025. The slight decrease of $0.1 million was primarily due to an increase in interest expense of $8.7 million slightly exceeding an increase in interest income of $8.6 million.

Total interest income increased $8.6 million to $252.8 million for the six months ended June 30, 2026, from $244.2 million for the six months ended June 30, 2025. The increase was primarily due to increases in average loan balances and interest-earning deposits with banks, offset largely by a 137 basis point decrease in yield earned on loans, as well as lower average balances and yields on investment securities. The 137 basis point decrease in yield earned on loans was primarily driven by a 69 basis point decrease in average SOFR, lower average spreads reflecting changes in market pricing, and a mix shift in the loan portfolio towards lower yielding categories, and higher relative levels of amortization of deferred fees during the six months ended June 30, 2025, which included $4.1 million for restructured loans.

Total interest expense increased $8.7 million to $130.1 million for the six months ended June 30, 2026, from $121.4 million for the six months ended June 30, 2025. The increase in interest expense was primarily due to an increase in average balances in third-party sweep deposits and Digital Banking deposits offset largely by a 35 basis point decrease in the average rate paid on interest-bearing deposits.

Net interest margin was 3.14% for the six months ended June 30, 2026, compared to 3.72% for the six months ended June 30, 2025, primarily due to a 137 basis point decrease in the yield on loans offset partially by a positive change in asset mix with loan growth exceeding growth in other earning asset categories, and a 40 basis point decrease in cost of funds.

Provision for Credit Losses

The Company recorded a provision for credit losses of $9.4 million for the six months ended June 30, 2026 compared to $12.5 million for the six months ended June 30, 2025. The provision for credit losses for the six months ended June 30, 2026 was driven by an increase in the ACL – Loans of $1.6 million, net charge-offs of $6.8 million, and an increase of $1.0 million in the ACL – Unfunded. The provision for credit losses for the six months ended June 30, 2025 was driven by an increase in the ACL – Loans of $6.0 million, $5.6 million in net charge-offs, and an increase of $0.9 million in the ACL – Unfunded. Net charge-offs for the year-to-date periods that relate to legacy Consumer and Commercial and Industrial forward flow loans were $4.8 million and $5.5 million, respectively for the six months ended June 30, 2026 and June 30, 2025.

Non-interest Income

Total non-interest income was $37.4 million for the six months ended June 30, 2026, compared to $25.3 million for the six months ended June 30, 2025. The increase of $12.1 million was primarily due to servicing fees and trust administration income related to the solar servicing business. The increase was offset by a decrease in income related to lower volume of FHA/HUD originations, less loan sales and fair value marks related to Corporate Finance loans, and lower investment advisory fees.

Core non-interest income⁽¹⁾ was $39.7 million for the six months ended June 30, 2026, compared to $21.5 million for the six months ended June 30, 2025. The increase of $18.2 million was primarily due to the items noted for total non-interest income related to solar servicing income, offset partially by lower FHA/HUD originations, and lower investment advisory fees.

Non-interest Expense

Total non-interest expense was $124.2 million for the six months ended June 30, 2026, compared to $99.9 million for the six months ended June 30, 2025. The increase of $24.3 million resulted primarily due to (i) the acquisition of the Solar Servicing business, (ii) the personnel retention compensation program implemented in connection with our initial public offering, (iii) professional fees associated with the initial public offering, and (iv) expenses related to the ownership of the company’s headquarters following the building acquisition in April 2026.

Income Taxes

Income tax expense was $10.8 million for the six months ended June 30, 2026, resulting in an effective tax rate of 40.6%, compared to income tax expense of $9.4 million and an effective tax rate of 26.3% for the six months ended June 30, 2025. Income tax expense for the six months ended June 30, 2026 includes (i) a $5.6 million write-down of deferred tax assets as of December 31, 2025 for stock compensation in connection with the initial public offering, which is due to tax rules that limit executive compensation deductions for companies with publicly traded securities, and (ii) a $2.9 million benefit for accretion of the deferred credit.

The effective tax rate for the six months ended June 30, 2026 was 40.6%, compared to 26.3% for the six months ended June 30, 2025. For the six months ended June 30, 2026, the effective tax rate was increased by 21.2% related to the one-time deferred tax asset adjustment for stock compensation, offset by a reduction of 10.8% related to accretion of the deferred credit.

__________________ (1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most directly comparable GAAP measure.

ASSET QUALITY

The Company's ACL – Loans held for investment at amortized cost was $54.6 million, or 0.98% of total loans held for investment at amortized cost, as of June 30, 2026, compared to $52.8 million, or 0.98%, as of March 31, 2026. The increase in the allowance for June 30, 2026 compared to March 31, 2026 was primarily due to increases in the ACL – Loans for forward flow consumer loans driven by recent portfolio performance and was offset partially by a favorable mix shift within the portfolio toward portfolios with lower ACL – Loans to loans held for investment at amortized cost ratios.

Net charge-offs were $2.7 million, or 0.20% of average loans held for investment at amortized cost, for the three months ended June 30, 2026, compared to $4.1 million, or 0.32%, for the three months ended March 31, 2026. Of the net charge-offs for the three months ended June 30, 2026 and March 31, 2026 $1.7 million and $3.1 million were related to legacy Consumer and Commercial and Industrial forward flow loans.

Net charge-offs were $6.8 million, or 0.26% of average loans held for investment at amortized cost, for the six months ended June 30, 2026, compared to $5.6 million, or 0.27%, for the six months ended June 30, 2025. Of the net charge-offs for the six months ended June 30, 2026 and June 30, 2025 $4.8 million and $5.5 million were related to legacy Consumer and Commercial and Industrial forward flow loans.

Non-performing assets were $92.9 million as of June 30, 2026, compared to $93.3 million as of March 31, 2026. Non-performing assets as a percentage of total assets were 1.09% as of June 30, 2026, compared to 1.13% as of March 31, 2026. Both in total, and as a percentage of total assets, non-performing assets remained relatively flat during the periods presented.

Non-performing loans held for investment at amortized cost were $72.5 million as of June 30, 2026, compared to $74.3 million as of March 31, 2026. Non-performing loans as a percentage of total loans held for investment at amortized cost was 1.30% as of June 30, 2026, compared to 1.38% as of March 31, 2026. Non-performing loans held for investment at amortized cost remained relatively flat both in total and as a percentage of held for investment loans at amortized cost for the periods presented.

CAPITAL

As of June 30, 2026, the Company’s and Bank’s Tier 1 leverage ratio was 10.38% and 11.24%, respectively, compared to 8.92% and 10.19%, respectively, as of March 31, 2026.

As of June 30, 2026, the Company’s and Bank’s Common Equity Tier 1 ratio was 12.97% and 14.08%, respectively, compared to 11.47% and 13.11%, respectively, as of March 31, 2026.

Total stockholders' equity was $967.2 million as of June 30, 2026, compared to $831.2 million as of March 31, 2026. The increase was primarily driven by the issuance of 7.9 million shares of common stock resulting in proceeds, net of issuance costs, of $131.0 million in connection with the Company's initial public offering.

As of June 30, 2026, the Company had:

• available borrowing capacity of $423.4 million with the Federal Home Loan Bank of Atlanta;
• available borrowing capacity of $1.9 billion with the Federal Reserve Bank;
• available borrowing capacity of $90.0 million from Fed Funds facilities with three other financial institutions; and
• available-for-sale investment securities with a fair value of $1.2 billion.

CONFERENCE CALL AND WEBCAST

The Company will host a conference call to discuss its second quarter 2026 financial results on July 30, 2026, at 8:00 a.m. Eastern Time. The live webcast will be available in the Events & Presentations section of the Company’s Investor Relations website at ir.forbrightbank.com.

To join, please pre-register here at least 15 minutes before the call begins.

A replay and transcript will be available in the Events & Presentations section of the Company’s Investor Relations website at ir.forbrightbank.com approximately two hours after the conclusion of the call.

ABOUT FORBRIGHT, INC.

Forbright, Inc. (Nasdaq: FRBT) is a bank holding company and the parent of FDIC-insured Forbright Bank, a modern financial services platform spanning nationwide middle-market lending, digital consumer banking, strategic advisory, and asset management services. Headquartered in Chevy Chase, Maryland, the Company operates at the intersection of two powerful, structural forces reshaping the U.S. banking sector: the rapidly evolving needs of the $10 trillion national middle market and the broadly accelerating shift toward digital-first banking. For more information, please visit forbrightbank.com. The information contained in, or that can be accessed through, our website is not incorporated by reference in, and is not part of, this press release. The inclusion of our website address in this press release is only as an inactive textual reference.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include discussion of plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as "see," “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan” or words or phrases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. Such forward-looking statements are based on various assumptions (some of which may be beyond our control) and are subject to risks and uncertainties, which change over time, and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to: economic conditions that impact the financial services industry and/or our business; our ability to manage our credit risk effectively and the potential deterioration of the business and economic conditions in our primary market areas; the composition of our loan portfolio; our ability to achieve organic loan and deposit growth and the composition of such growth; our ability to maintain our bank’s reputation; our ability to attract and retain skilled employees and manage changes in our management personnel; risks associated with unauthorized access, cyber-crime and other threats to data security; our ability to effectively compete with other financial services companies and the effects of competition in the financial services industry on our business; our ability to successfully develop and commercialize new or enhanced products and services; changes in the demand for our products and services; the sufficiency of our capital, including sources of capital and the extent to which we may be required to raise additional capital to meet our goals; the effectiveness of our risk management and internal disclosure controls and procedures; our access to sources of liquidity and capital to address our liquidity needs; the effects of the failure of any component of our business infrastructure provided by a third-party; any failure or interruption of our information and communications systems; the impact of, and changes in applicable laws, regulations and accounting standards and policies; the effects of geopolitical instability, including war, terrorist attacks, and man-made and natural disasters; our ability to keep pace with technological changes; the effects of problems encountered by other financial institutions; and other risks and uncertainties described under “Risk Factors” of our Registration Statement on Form S-1 and subsequent filings with the U.S. Securities and Exchange Commission.

All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made except as required by the federal securities laws.

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. You should specifically consider the factors identified in this presentation that could cause actual results to differ before making an investment decision to purchase our Class A common stock. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us.

FINANCIAL TABLES

FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)
		For the Three Months Ended
(dollars in thousands, except per share amounts)		June 30, 2026				March 31, 2026				Change
INTEREST INCOME
Loans held for investment		$	98,522			$	93,164			$	5,358
Loans held-for-sale			8,484				8,194				290
Deposits with banks			7,252				7,582				(330	)
Interest on investment securities			14,158				14,099				59
Interest and dividends on other earning assets			648				716				(68	)
Total interest income			129,064				123,755				5,309
INTEREST EXPENSE
Deposits			64,024				62,295				1,729
Subordinated debt, net			1,895				1,902				(7	)
Total interest expense			65,919				64,197				1,722
Net interest income			63,145				59,558				3,587
Provision for credit losses			5,899				3,473				2,426
Net interest income after provision for credit losses			57,246				56,085				1,161
NON-INTEREST INCOME
Servicing income			6,876				7,087				(211	)
Investment advisory fees			3,090				3,193				(103	)
Fee income on loans			2,252				2,003				249
Gains/(losses) on sales of loans and investment securities, net			252				(34	)			286
Unrealized losses on loans and financing receivables, net			(963	)			(1,335	)			372
Other non-interest income			10,339				4,670				5,669
Total non-interest income			21,846				15,584				6,262
NON-INTEREST EXPENSE
Compensation and benefits			33,407				31,642				1,765
Information technology			7,581				7,540				41
Professional fees			9,777				7,823				1,954
Loan administration and servicing			5,500				4,125				1,375
Advertising and marketing			2,720				2,304				416
FDIC insurance			1,111				902				209
Occupancy expense			1,466				1,122				344
Other non-interest expense			4,214				2,999				1,215
Total non-interest expense			65,776				58,457				7,319
Income before income taxes			13,316				13,212				104
Income tax expense			9,194				1,580				7,614
Net income		$	4,122			$	11,632			$	(7,510	)
Basic earnings per voting and non-voting common share		$	0.10			$	0.29			$	(0.19	)
Diluted earnings per voting and non-voting common share		$	0.09			$	0.27			$	(0.18	)
Weighted-average shares used to compute earnings per voting common share:
Basic			21,175,037				19,063,817				2,111,220
Diluted			23,498,322				21,188,692				2,309,630
Weighted-average shares used to compute earnings per non-voting common share, basic and diluted			21,014,378				21,242,551				(228,173	)

FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)
		For the Six Months Ended
(dollars in thousands, except per share amounts)		June 30, 2026				June 30, 2025			Change
INTEREST INCOME
Loans held for investment		$	191,686			$	175,759		$	15,927
Loans held-for-sale			16,678				19,822			(3,144	)
Deposits with banks			14,834				14,576			258
Interest on investment securities			28,257				32,261			(4,004	)
Interest and dividends on other earning assets			1,364				1,776			(412	)
Total interest income			252,819				244,194			8,625
INTEREST EXPENSE
Deposits			126,319				115,205			11,114
Subordinated debt, net			3,797				4,942			(1,145	)
Other borrowings			—				1,266			(1,266	)
Total interest expense			130,116				121,413			8,703
Net interest income			122,703				122,781			(78	)
Provision for credit losses			9,372				12,549			(3,177	)
Net interest income after provision for credit losses			113,331				110,232			3,099
NON-INTEREST INCOME
Servicing income			13,963				—			13,963
Investment advisory fees			6,283				8,498			(2,215	)
Fee income on loans			4,255				3,831			424
Gains on sales of loans and investment securities, net			218				2,170			(1,952	)
Unrealized (losses)/gains on loans and financing receivables, net			(2,298	)			2,746			(5,044	)
Other non-interest income			15,009				8,047			6,962
Total non-interest income			37,430				25,292			12,138
NON-INTEREST EXPENSE
Compensation and benefits			65,049				60,440			4,609
Information technology			15,121				12,896			2,225
Professional fees			17,600				6,542			11,058
Loan administration and servicing			9,625				2,756			6,869
Advertising and marketing			5,024				4,539			485
FDIC insurance			2,013				3,349			(1,336	)
Occupancy expense			2,588				2,497			91
Other non-interest expense			7,213				6,896			317
Total non-interest expense			124,233				99,915			24,318
Income before income taxes			26,528				35,609			(9,081	)
Income tax expense			10,774				9,373			1,401
Net income		$	15,754			$	26,236		$	(10,482	)
Basic earnings per voting common share		$	0.38			$	0.65		$	(0.27	)
Basic earnings per non-voting common share		$	0.39			$	0.65		$	(0.26	)
Diluted earnings per voting common share		$	0.36			$	0.63		$	(0.27	)
Diluted earnings per non-voting common share		$	0.37			$	0.63		$	(0.26	)
Weighted-average shares used to compute earnings per voting common share:
Basic			20,120,097				18,993,327			1,126,770
Diluted			22,344,262				20,157,743			2,186,519
Weighted-average shares used to compute earnings per non-voting common share, basic and diluted			21,127,834				21,242,551			(114,717	)

FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited)
(dollars in thousands, except per share amounts)		June 30, 2026				March 31, 2026				December 31, 2025
ASSETS
Cash, due from banks and restricted cash		$	26,524			$	25,280			$	18,241
Interest-bearing deposits with banks			808,192				840,856				630,474
Cash, cash equivalents and restricted cash			834,716				866,136				648,715
Investment securities available-for-sale, at fair value			1,210,665				1,235,599				1,254,887
Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses - investment securities of $110, respectively			48,634				48,834				48,834
Loans held-for-sale			465,474				407,594				379,662
Loans held for investment, at fair value			3,481				4,555				4,645
Loans held for investment, at amortized cost			5,595,872				5,376,537				5,222,234
Allowance for credit losses - loans			(54,621	)			(52,794	)			(52,986	)
Net loans held for investment, at amortized cost			5,541,251				5,323,743				5,169,248
Other earning assets, net			50,479				50,690				55,928
Deferred tax asset, net			145,269				152,963				153,314
Accrued interest receivable			46,445				45,369				55,155
Premises and equipment, net			47,877				29,763				30,763
Goodwill and other intangible assets, net			35,964				31,402				31,685
Other assets			75,249				36,412				56,470
Total assets		$	8,505,504			$	8,233,060			$	7,889,306
LIABILITIES
Non-interest-bearing deposits		$	435,065			$	473,153			$	372,444
Interest-bearing deposits			6,830,770				6,665,055				6,405,471
Total deposits			7,265,835				7,138,208				6,777,915
Subordinated debt, net			151,181				151,092				151,003
Other liabilities			121,325				112,565				137,945
Total liabilities			7,538,341				7,401,865				7,066,863
Off-balance sheet commitments
STOCKHOLDERS’ EQUITY
Preferred stock, $0.001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding			—				—				—
Common stock, $0.001 par value per share; 103,200,000 shares authorized:
Voting common stock, 28,949,031, 19,605,006, and 19,438,060 shares issued and outstanding, respectively			29				20				20
Non-voting common stock, 20,748,177, 21,242,551, and 21,242,551 shares issued and outstanding, respectively			21				21				21
Additional paid-in capital			628,499				493,074				490,550
Retained earnings			344,582				340,460				328,828
Accumulated other comprehensive (loss)/income			(5,968	)			(2,380	)			3,024
Total stockholders’ equity			967,163				831,195				822,443
Total liabilities and stockholders’ equity		$	8,505,504			$	8,233,060			$	7,889,306

FORBRIGHT, INC. AND SUBSIDIARIES Performance Ratios (Unaudited)
		For the Three Months Ended				For the Six Months Ended
		June 30, 2026		March 31, 2026		June 30, 2026		June 30, 2025
Return on average total assets(2)		0.20 %		0.59 %		0.39 %		0.77 %
Return on average stockholders’ equity(2)		1.89 %		5.62 %		3.71 %		7.07 %
Return on average tangible common equity(1)		2.19 %		5.95 %		4.02 %		7.54 %
Yield on earning assets(2)		6.52 %		6.44 %		6.48 %		7.39 %
Yield on interest-bearing liabilities(2)		3.87 %		3.89 %		3.88 %		4.25 %
Spread(3)		2.65 %		2.55 %		2.60 %		3.14 %
Net interest margin(4)		3.19 %		3.10 %		3.14 %		3.72 %
Efficiency ratio(5)		77.39 %		77.80 %		77.58 %		67.48 %

__________________

(1) Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most directly comparable GAAP measure.

(2) Annualized.

(3) Spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities.

(4) Net interest margin is computed by dividing annualized net interest income by total average assets

(5) Efficiency ratio is calculated by dividing non-interest expense by total revenue, which equals the sum of net interest income and non-interest income.

FORBRIGHT, INC. AND SUBSIDIARIES Average Balance Sheets (Unaudited)
		For the Three Months Ended
		June 30, 2026										March 31, 2026
(dollars in thousands)		Average Balance				Interest Income/ Expense			Average Yields Earned/ Rates Paid(1)			Average Balance				Interest Income/ Expense			Average Yields Earned/ Rates Paid(1)
Assets:
Total loans held for investment		$	5,409,608			$	98,522		7.30	%		$	5,214,460			$	93,164		7.25	%
Total loans held-for-sale			427,940				8,484		7.95	%			401,269				8,194		8.28	%
Total loans			5,837,548				107,006		7.35	%			5,615,729				101,358		7.32	%
Total investment securities			1,263,848				14,158		4.49	%			1,291,428				14,099		4.43	%
Interest-bearing deposits with banks			787,320				7,252		3.69	%			836,173				7,582		3.68	%
Other earnings assets			50,661				648		5.13	%			55,017				716		5.28	%
Total interest-earning assets			7,939,377				129,064		6.52	%			7,798,347				123,755		6.44	%
Allowance for credit losses			(53,328	)									(52,686	)
Other assets			336,948										276,876
Total assets		$	8,222,997									$	8,022,537
Liabilities and stockholders’ equity
Interest-bearing demand deposits		$	283,305			$	2,442		3.46	%		$	280,987			$	2,433		3.51	%
Money market deposits			1,403,392				13,138		3.75	%			1,322,061				12,189		3.74	%
Savings deposits			3,680,352				34,725		3.78	%			3,538,759				33,108		3.79	%
Time deposits			1,310,156				13,719		4.20	%			1,398,063				14,565		4.23	%
Total interest-bearing deposits			6,677,205				64,024		3.85	%			6,539,870				62,295		3.86	%
Subordinated debt, net			151,123				1,895		5.03	%			151,034				1,902		5.11	%
Total interest-bearing liabilities			6,828,328				65,919		3.87	%			6,690,904				64,197		3.89	%
Non-interest-bearing demand deposits			408,649										372,965
Other liabilities			113,261										119,506
Total liabilities			7,350,238										7,183,375
Stockholders’ equity			872,759										839,162
Total liabilities and stockholders’ equity		$	8,222,997									$	8,022,537
Net interest income and spread(2)						$	63,145		2.65	%						$	59,558		2.55	%
Net interest margin(3)									3.19	%									3.10	%

__________________

(1) Annualized.

(2) Spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities.

(3) Net interest margin is computed by dividing annualized net interest income by total average assets.

FORBRIGHT, INC. AND SUBSIDIARIES Average Balance Sheets (Unaudited)
		For the Six Months Ended
		June 30, 2026										June 30, 2025
(dollars in thousands)		Average Balance				Interest Income/ Expense			Average Yields Earned/ Rates Paid(1)			Average Balance				Interest Income/ Expense			Average Yields Earned/ Rates Paid(1)
Assets:
Total loans held for investment		$	5,312,573			$	191,686		7.28	%		$	4,208,175			$	175,759		8.42	%
Total loans held-for-sale			414,679				16,678		8.11	%			322,443				19,822		12.40	%
Total loans			5,727,252				208,364		7.34	%			4,530,618				195,581		8.71	%
Total investment securities			1,277,562				28,257		4.46	%			1,404,102				32,261		4.63	%
Interest-bearing deposits with banks			811,610				14,834		3.69	%			666,536				14,576		4.41	%
Other earnings assets			52,827				1,364		5.21	%			58,364				1,776		6.14	%
Total interest-earning assets			7,869,251				252,819		6.48	%			6,659,620				244,194		7.39	%
Allowance for credit losses			(53,009	)									(43,706	)
Other assets			307,033										218,093
Total assets		$	8,123,275									$	6,834,007
Liabilities and stockholders’ equity
Interest-bearing demand deposits		$	282,152			$	4,875		3.48	%		$	291,569			$	5,378		3.72	%
Money market deposits			1,362,951				25,327		3.75	%			803,375				14,552		3.65	%
Savings deposits			3,609,947				67,833		3.79	%			2,586,584				53,819		4.20	%
Time deposits			1,353,867				28,284		4.21	%			1,847,148				41,456		4.53	%
Total interest-bearing deposits			6,608,917				126,319		3.85	%			5,528,676				115,205		4.20	%
Subordinated debt, net			151,078				3,797		5.07	%			174,488				4,942		5.71	%
Other borrowings			—				—		—	%			56,389				1,266		4.53	%
Total interest-bearing liabilities			6,759,995				130,116		3.88	%			5,759,553				121,413		4.25	%
Non-interest-bearing demand deposits			390,906										252,346
Other liabilities			116,416										73,932
Total liabilities			7,267,317										6,085,831
Stockholders’ equity			855,958										748,175
Total liabilities and stockholders’ equity		$	8,123,275									$	6,834,006
Net interest income and spread(2)						$	122,703		2.60	%						$	122,781		3.14	%
Net interest margin(3)									3.14	%									3.72	%

__________________

(1) Annualized.

(2) Spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities.

(3) Net interest margin is computed by dividing annualized net interest income by total average assets.

FORBRIGHT, INC. AND SUBSIDIARIES Loans Held for Investment at Amortized Cost (Unaudited)
		June 30, 2026						March 31, 2026						December 31, 2025
(dollars in thousands)		Amount			% of total loans			Amount			% of total loans			Amount			% of total loans
Commercial Real Estate		$	2,849,478		50.9	%		$	2,679,872		49.9	%		$	2,528,996		48.4	%
Commercial and Industrial			2,541,275		45.4	%			2,485,418		46.2	%			2,475,549		47.4	%
Consumer			205,119		3.7	%			211,247		3.9	%			217,689		4.2	%
Total loans held for investment at amortized cost		$	5,595,872		100.0	%		$	5,376,537		100.0	%		$	5,222,234		100.0	%

FORBRIGHT, INC. AND SUBSIDIARIES Allowance for Credit Losses - Loans Held for Investment at Amortized Cost (Unaudited)
		As of and For the Three Months Ended								As of and For the Six Months Ended
(dollars in thousands)		June 30, 2026				March 31, 2026				June 30, 2026				June 30, 2025
Average loans held for investment outstanding, at amortized cost		$	5,405,685			$	5,209,705			$	5,308,237			$	4,200,938
Total loans held for investment outstanding, at amortized cost at end of period		$	5,595,872			$	5,376,537			$	5,595,872			$	4,476,367
ACL - Loans:
Beginning of period		$	52,794			$	52,986			$	52,986			$	42,294
Provision for credit losses on loans			4,521				3,867				8,388				11,519
Provision for credit losses on loan transfers from loans held-for-sale			—				17				17				97
Loan charge-offs:
Commercial Real Estate			—				—				—				—
Commercial and Industrial			(1,736	)			(2,830	)			(4,566	)			(3,580	)
Consumer			(1,353	)			(2,057	)			(3,410	)			(3,446	)
Total charge-offs			(3,089	)			(4,887	)			(7,976	)			(7,026	)
Loan recoveries:
Commercial Real Estate			—				—				—				—
Commercial and Industrial			131				542				673				948
Consumer			264				269				533				476
Total recoveries			395				811				1,206				1,424
Net charge-offs			(2,694	)			(4,076	)			(6,770	)			(5,602	)
End of period		$	54,621			$	52,794			$	54,621			$	48,308
Ratio of ACL - Loans to total loans at amortized cost at period end			0.98	%			0.98	%			0.98	%			1.08	%
Ratio of net charge-offs to average total loans at amortized cost			(0.20	)%			(0.32	)%			(0.26	)%			(0.27	)%

FORBRIGHT, INC. AND SUBSIDIARIES Asset Quality (Unaudited)
(dollars in thousands)		June 30, 2026				March 31, 2026				December 31, 2025
NON-PERFORMING ASSETS
Total non-accrual loans:
Commercial Real Estate		$	67,312			$	66,804			$	60,360
Commercial and Industrial			19,498				15,984				11,798
Consumer			1,407				1,670				1,857
Total non-accrual loans			88,217				84,458				74,015
Accruing loans 90 days or more past due			—				1,762				—
Non-performing financing receivables			—				—				—
Other real estate owned			4,642				7,109				8,729
Total non-performing assets		$	92,859			$	93,329			$	82,744
Total non-accrual loans as a percentage of total loans			1.45	%			1.46	%			1.32	%
Total non-performing financing receivables as a percentage of total financing receivables			—	%			—	%			—	%
Total non-performing assets as a percentage of total assets			1.09	%			1.13	%			1.05	%
NON-PERFORMING LOANS HELD FOR INVESTMENT AT AMORTIZED COST
Total non-accrual loans held for investment at amortized cost:
Commercial Real Estate		$	67,312			$	66,804			$	60,361
Commercial and Industrial			3,752				4,112				5,484
Consumer			1,407				1,670				1,857
Total non-accrual loans			72,471				72,586				67,702
Accruing loans 90 days or more past due			—				1,762				—
Total non-performing loans held for investment at amortized cost		$	72,471			$	74,348			$	67,702
Total non-accrual loans held for investment at amortized cost to total loans held for investment at amortized cost			1.30	%			1.35	%			1.30	%
Total ACL - Loans to total non-accrual loans held for investment at amortized cost			75.37	%			72.73	%			78.26	%
Non-performing loans held for investment at amortized cost to total loans held for investment at amortized cost			1.30	%			1.38	%			1.30	%

FORBRIGHT, INC. AND SUBSIDIARIES Investment Securities (Unaudited)
		June 30, 2026						March 31, 2026						December 31, 2025
(dollars in thousands)		Amount(1)			% of total securities			Amount(1)			% of total securities			Amount(1)			% of total securities
Available-for-sale securities:
U.S. Treasury and government agencies		$	695,844		55.3	%		$	776,453		60.4	%		$	958,347		73.4	%
Residential agency mortgage-backed			312,973		24.8	%			264,101		20.6	%			139,077		10.7	%
Commercial agency mortgage-backed			182,856		14.5	%			176,221		13.7	%			136,070		10.4	%
Municipal bonds			8,635		0.7	%			8,498		0.7	%			8,635		0.7	%
Other			10,357		0.8	%			10,326		0.8	%			12,758		1.0	%
Total investment securities available-for-sale		$	1,210,665		96.1	%		$	1,235,599		96.2	%		$	1,254,887		96.2	%
Held-to-maturity securities:
Municipal bonds		$	31,000		2.5	%		$	31,200		2.4	%		$	31,200		2.4	%
Other			17,744		1.4	%			17,744		1.4	%			17,744		1.4	%
Total investment securities held-to-maturity		$	48,744		3.9	%		$	48,944		3.8	%		$	48,944		3.8	%
Total investment securities		$	1,259,409		100.0	%		$	1,284,543		100.0	%		$	1,303,831		100.0	%

__________________

(1) Available-for-sale investment securities are reported at fair value and held-to-maturity investment securities are reported at amortized cost.

FORBRIGHT, INC. AND SUBSIDIARIES Deposits (Unaudited)
		June 30, 2026						March 31, 2026						December 31, 2025
(dollars in thousands)		Amount			% of total			Amount			% of total			Amount			% of total
Non-interest-bearing deposits		$	435,065		6.0	%		$	473,153		6.6	%		$	372,444		5.5	%
Interest-bearing deposits:
Demand			284,748		3.9	%			287,356		4.0	%			275,259		4.1	%
Money market			1,394,865		19.2	%			1,424,548		20.0	%			1,206,544		17.8	%
Savings			3,878,206		53.4	%			3,607,617		50.6	%			3,500,532		51.6	%
Time deposits			1,272,951		17.5	%			1,345,534		18.8	%			1,423,136		21.0	%
Total interest-bearing deposits			6,830,770		94.0	%			6,665,055		93.4	%			6,405,471		94.5	%
Total deposits		$	7,265,835		100.0	%		$	7,138,208		100.0	%		$	6,777,915		100.0	%

FORBRIGHT, INC. AND SUBSIDIARIES Capital Ratios (Unaudited)
		June 30, 2026(1)		March 31, 2026		December 31, 2025
Company:
Tier 1 leverage ratio		10.38 %		8.92 %		9.79 %
Total capital to risk-weighted assets ratio		16.05 %		14.68 %		15.89 %
Tier 1 capital to risk-weighted assets ratio		12.97 %		11.47 %		12.72 %
Common Equity Tier 1 to risk weighted-assets ratio		12.97 %		11.47 %		12.72 %
Bank:
Tier 1 leverage ratio		11.24 %		10.19 %		11.11 %
Total capital to risk-weighted assets ratio		14.98 %		14.01 %		15.14 %
Tier 1 capital to risk-weighted assets ratio		14.08 %		13.11 %		14.37 %
Common Equity Tier 1 to risk weighted-assets ratio		14.08 %		13.11 %		14.37 %

__________________

(1) Regulatory capital ratios as of June 30, 2026 are preliminary pending filing of regulatory reports.

FORBRIGHT, INC. AND SUBSIDIARIES Non-GAAP Financial Measures (Unaudited)

This earnings release contains “non-GAAP financial measures” within the meaning of Item 10(e) of Regulation S-K. Non-GAAP financial measures are financial measures that are not presented in accordance with GAAP. We use these non-GAAP financial measures in the internal evaluation of our performance and management of our business as well as to explain our results of operations to stockholders and the wider investment community. The following non-GAAP financial measures appear in this earnings release:

Tangible common equity - We calculate tangible common equity by deducting goodwill and other intangible assets from stockholder’s equity. Tangible common equity per common share - We calculate tangible common equity per common share by dividing tangible common equity, as defined above, by our average common shares outstanding for the period, excluding the dilutive effect of outstanding stock options, and including the effect of outstanding shares from restricted stock awards. Return on average tangible common equity - We calculate return on average tangible common equity by dividing net income for the period plus intangible asset amortization on an after-tax basis, by average tangible common equity over the same period. Adjusted net income, used for the calculation of return on average tangible common equity, is calculated by deducting the tax effected amount of intangible asset amortization from net income. Non-core gains/(losses) on sales of loans and investment securities, net - We calculate non-core gains/(losses) on sales of loans and investment securities, net by deducting gains from sales of loans to Alliance Partners from gains/(losses) on sales of loans and investment securities, net, as reported on the Consolidated Statements of Income. Core and non-core non-interest income - Core non-interest income equals total non-interest income less (a) non-core gains/(losses) on sales of loan and investment securities, net, (b) unrealized gains on loans and financing receivables, net, (c) rental income and (d) other income. Non-core non-interest income equals total non-interest income less core non-interest income. Adjusted total revenue - We calculate adjusted total revenue by deducting non-core non-interest income from total revenue. Pre Provision Net Revenue - We calculate pre provision net revenue by adding provision for credit losses to income before income taxes.

Our management believes that these non-GAAP financial measures and the information they provide are useful to investors because these measures allow investors to view our performance in the same manner our management evaluates performance. Although we believe these non-GAAP financial measures are useful in evaluating our performance, these non-GAAP financial measures should not be considered in isolation or as a substitution for the most directly comparable or other financial measures presented in this earnings release under GAAP. Additionally, the manner in which we calculate these non-GAAP financial measures may be different from how other companies calculate financial measures with similar names.

FORBRIGHT, INC. AND SUBSIDIARIES Non-GAAP Financial Measures - (continued) (Unaudited)
		As of and For the Three Months Ended								As of and For the Six Months Ended
(dollars in thousands, except per share data)		June 30, 2026				March 31, 2026				June 30, 2026				June 30, 2025
Tangible common equity
Stockholders’ equity (GAAP)		$	967,163			$	831,195			$	967,163			$	752,296
Less:
Goodwill			18,519				18,519				18,519				18,519
Other intangible assets			17,445				12,883				17,445				13,847
Tangible common equity (non-GAAP)		$	931,199			$	799,793			$	931,199			$	719,930
Total common shares outstanding			49,697,208				40,847,557				49,697,208				40,658,442
Stockholders’ equity per total common share outstanding (GAAP)		$	19.46			$	20.35			$	19.46			$	18.50
Tangible common equity per total common share outstanding (non-GAAP)		$	18.74			$	19.58			$	18.74			$	17.71
Return on average tangible common equity
Average stockholders equity (GAAP)		$	872,759			$	839,162			$	855,958			$	748,175
Less:
Average goodwill			18,519				18,519				18,519				18,519
Average other intangible assets			12,839				13,069				12,953				14,239
Average tangible common equity (non-GAAP)		$	841,401			$	807,574			$	824,486			$	715,417
Net income (GAAP)		$	4,122			$	11,632			$	15,754			$	26,236
Add:
Intangible asset amortization, net of tax			476				210				686				505
Adjusted net income (non-GAAP)		$	4,598			$	11,842			$	16,440			$	26,741
Return on average stockholders’ equity (GAAP)			1.89	%			5.62	%			3.71	%			7.07	%
Return on average tangible common equity (non-GAAP)			2.19	%			5.95	%			4.02	%			7.54	%
Non-core (losses)/gains on sales of loans and investment securities, net (non-GAAP)
Gains/(losses) on sales of loans and investment securities, net (GAAP)		$	252			$	(34	)		$	218			$	2,170
Less:
Gains on sales of loans by Alliance Partners			252				253				505				1,024
Non-core (losses)/gains on sales of loans and investment securities, net (non-GAAP)		$	—			$	(287	)		$	(287	)		$	1,146

FORBRIGHT, INC. AND SUBSIDIARIES Non-GAAP Financial Measures - (continued) (Unaudited)
		As of and For the Three Months Ended								As of and For the Six Months Ended
(dollars in thousands, except per share data)		June 30, 2026				March 31, 2026				June 30, 2026				June 30, 2025
Core and non-core non-interest income
Non-interest income (GAAP)		$	21,846			$	15,584			$	37,430			$	25,292
Less:
Non-core (losses)/gains on sales of loans and investment securities, net (non-GAAP)			—				(287	)			(287	)			1,146
Unrealized (losses)/gains on loans and financing receivables, net			(963	)			(1,335	)			(2,298	)			2,746
Rental income			1,225				—				1,225				—
Other (included in other non-interest income)			(137	)			(756	)			(893	)			(91	)
Core non-interest income (non-GAAP)		$	21,721			$	17,962			$	39,683			$	21,491
Non-core non-interest income (non-GAAP)		$	125			$	(2,378	)		$	(2,253	)		$	3,801
Adjusted total revenue
Net interest income		$	63,145			$	59,558			$	122,703			$	122,781
Non-interest income			21,846				15,584				37,430				25,292
Total Revenue (GAAP)		$	84,991			$	75,142			$	160,133			$	148,073
Less:
Non-core non-interest income (non-GAAP)			125				(2,378	)			(2,253	)			3,801
Adjusted total revenue (non-GAAP)		$	84,866			$	77,520			$	162,386			$	144,272
Non-interest income to total revenue (GAAP)			25.7	%			20.7	%			23.4	%			17.1	%
Core non-interest income to adjusted total revenue (non-GAAP)			25.6	%			23.2	%			24.4	%			14.9	%
Pre Provision Net Revenue (non-GAAP)
Income before income taxes (GAAP)		$	13,316			$	13,212			$	26,528			$	35,609
Add:
Provision for credit losses			5,899				3,473				9,372				12,549
Pre Provision Net Revenue (non-GAAP)		$	19,215			$	16,685			$	35,900			$	48,158

 

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INVESTOR & MEDIA CONTACT: Ben Wakana, Chief Public Affairs and Investor Relations Officer | 207-551-7415 | bwakana@forbrightbank.com

Source: Forbright, Inc.