Forbright Q3 earnings call highlights. October 29, 2026 Key points. * Forbright's third-quarter results improved sharply: Net income rose more than 400% sequentially to $20.6 million, while net interest income increased 14% to $72 million. Loan growth, stable net interest margin and lower charge-offs supported the stronger performance. * Loan growth and credit quality remained favorable: The loan portfolio grew 9.5% during the quarter and 24% year over year, led primarily by healthcare lending. Net charge-offs declined to $1.2 million, with the core charge-off rate falling to 3 basis points. * Management expects continued strategic improvement: Forbright anticipates fourth-quarter margin expansion, plans to launch checking products in 2027 and expects efficiency initiatives and a branch sale to support investment in its digital deposit platform. The company also ended the quarter with strong capital ratios and plans to redeem $25 million of subordinated debt in December. * Interested in Forbright? Here are five stocks we like better. Forbright NASDAQ: FRBT reported third-quarter 2026 net income of $20.6 million, or $0.41 per diluted share, as strong loan growth, stable net interest margin and lower charge-offs lifted results from the prior quarter. Net income increased by $16.5 million, or more than 400%, from the second quarter, according to President and Chief Operating Officer Don Cole. Net interest income rose about 14% sequentially to $72 million, while pre-provision net revenue increased nearly 60%. Chairman and Chief Executive Officer John Delaney called the quarter "terrific," citing loan growth, credit performance, deposit growth and progress on efficiency initiatives. The company's loan portfolio grew 24% from a year earlier and 9.5% during the quarter, with healthcare lending accounting for most of the period's growth. Loan growth and credit performance. Delaney said all six of Forbright's national specialty lending businesses are seeing opportunities with what management views as attractive structures and appropriate spreads. While healthcare was the largest contributor to growth in the third quarter, he said it may not be the leading contributor in the fourth quarter because of expected payoffs and deal timing. Management said loan originations have been strong enough that the company may test modestly wider spreads on new loans. Delaney said any potential spread widening would be limited in a competitive lending environment, but could allow Forbright to meet its growth objectives while improving economics on future originations. Credit quality improved during the quarter. Net charge-offs totaled $1.2 million, down from $2.7 million in the second quarter. The core net charge-off rate across the company's six national lending strategies was 3 basis points, compared with 8 basis points in the prior quarter. Management said its annualized forecast for core charge-offs remains 25 basis points. Delaney said most of the company's lending businesses are asset-based, while its corporate finance portfolio can carry greater loss potential because loans are based on enterprise value and cash flow rather than solely on liquidation values of underlying assets. Deposits, margin and digital Strategy. Forbright's digital deposit platform raised more than $1 billion during the quarter, representing a 24% increase from the prior quarter. Delaney said the platform gives the company a scalable funding source and increasingly precise control over deposit volumes, pricing and customer acquisition costs. Discover more MarketBeat All Access MarketBeat Research Tools The company held its Growth Savings base rate steady following the Federal Reserve's September rate increase. Cole said that decision, combined with declining non-accrual loans and the recapture of previously unrecognized interest on loans returning to accrual status, helped keep net interest margin essentially flat despite higher liquidity levels. Management said the excess liquidity was partly intended to support the pending sale of Forbright's legacy Washington, D.C.-area branches and associated deposits to Trustar Bank. Delaney said Trustar anticipates regulatory approval in the fourth quarter, with closing expected in the first quarter of 2027 as the institutions coordinate their core service providers. Forbright plans a phased rollout of its checking product beginning in the first quarter of 2027, followed by broader public promotion in the second quarter. Chief Strategy Officer Aaron Juda said the company could introduce a referral promotion by year-end, though management has not determined whether future deposit pricing actions would involve changes to the base rate, new promotional offers or both. Cole said Forbright targets a loan-to-deposit ratio in the 90% to low-90% range. The ratio was 87.3% at the end of the third quarter, up 4 percentage points from the prior quarter as excess liquidity was deployed into loans, excluding $740 million in branch-sale deposits. Management expects net interest margin to widen in the fourth quarter. Delaney said Forbright seeks longer-term margin improvement through disciplined deposit pricing, higher loan-to-deposit ratios and potentially better spreads on new loan production. Efficiency, capital and outlook. The company's efficiency ratio improved to 69.6%, down roughly 8 percentage points from the second quarter. Cole said Forbright's operating model is designed to scale without proportional headcount growth, and management remains on track for its 2027 efficiency targets. For 2027, management expects core expenses, excluding solar servicing pass-through expenses, to remain largely flat. The company expects savings from its efficiency initiatives and the branch sale to support continued investment in its digital deposit franchise. Chief Financial Officer Chris Lynch said Forbright ended the quarter with common equity Tier 1 ratios of 12.9% at the parent company and 13.7% at the bank. Cash and available-for-sale investments totaled $1.9 billion at quarter-end, excluding $721 million of cash held for the branch sale. Forbright also plans to redeem $25 million of subordinated debt at par on Dec. 1. The debt matures in December 2029 and carries a floating rate of three-month term SOFR plus 439 basis points, or about 8.45% at current market rates, Lynch said. The company estimated a fourth-quarter tax rate of about 20% and a 2027 tax rate of about 19%, each net of deferred-credit amortization of approximately 9%. Delaney also outlined the company's view that artificial intelligence and digital tools will make it easier for consumers to compare banking products and move deposits. He said Forbright is building its digital platform for that shift, while noting that effective regulatory oversight of AI tools should address security, data integrity and consumer protection. About Forbright (NASDAQ:FRBT). Forbright is a financial services company centered on Forbright Bank, a mission-driven full-service bank that provides commercial and consumer banking services. The company focuses on financing businesses, organizations and projects that support sustainable economic development, including clean energy, affordable housing, health care, education and nonprofit initiatives. Forbright Bank offers deposit accounts, treasury and cash-management services, commercial real estate lending, commercial and industrial loans, residential lending and other financing solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Forbright, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Forbright wasn't on the list. While Forbright currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. 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Virginia lender to acquire Forbright's DC-area branches. 22/08/2026 by Qodriyah Rosdi Tax Moves Virginia lender Trustar Bank will acquire Forbright Bank's Washington, D.C., area branches, adding $750 million in local deposits to its balance sheet. The deal, announced Friday, is expected to close in the fourth quarter. The $1.14 billion-asset Trustar, founded in 2019 as the region's first de novo bank since 2008, plans to add the six branches to its existing footprint. The transaction allows Forbright, a $8.5 billion-asset bank, to shed its physical branches in Potomac and North Bethesda, Maryland, and a customer service hub in McLean, Virginia. Forbright will retain its headquarters in Chevy Chase, Maryland, but the deal clears the path for the bank to concentrate on its national digital banking platform and middle-market commercial lending strategy. Trustar's CEO, Shaza Andersen, called the acquisition a strategically aligned opportunity to strengthen the lender's presence in core markets. Trustar noted that the purchase price includes a $19 million deposit premium. The bank expects the tie-up to be accretive to earnings through 2027. Andersen emphasized that the team places a high value on personal connections and trust. The goal is to ensure a seamless transition for customers and employees joining the Trustar family. Forbright's former congressman and founder, John Delaney, stated that the national businesses have reached a scale where the bank can focus capital and management attention on areas of competitive advantage. Forbright CEO Don Cole clarified that none of the bank's national lending or national digital deposits are involved in the transaction. The restructuring is intended to make the bank more focused and efficient. Forbright has a history dating back to 2003 as Congressional Bank, rebranding in 2022. However, the bank has faced regulatory scrutiny. It has weathered at least two consent orders from regulators, including a May 2024 action from the FDIC. The agency ordered Forbright to limit asset growth and adjust its funding model due to "reliance on noncore funding." The bank also received a downgrade to its Community Reinvestment Act rating last year. The regulatory issues stem from brokered sweep deposits, which are sometimes viewed as "hot money" because they migrate toward higher interest rates. In December 2022, the FDIC and the Maryland Office of Financial Regulation ordered the bank to address anti-money laundering controls and board oversight. Those orders were terminated in 2023. Forbright's leadership framed the divestiture as a necessary step to ride out structural shifts in the banking industry. The bank's press release suggested that spreading resources across non-core businesses prevents value creation. "Every minute spent chasing distractions is a minute not building things that create disproportionate value," the statement read. The bank intends to concentrate its energy where expertise matters and relationships endure. Trustar will assume the deposits and related liabilities at the acquired locations. This expansion helps the Virginia bank deepen its roots in the Washington metropolitan area. [1]Regulators seek clarity on financial risk rule standards, a consideration for banks expanding their footprints.