Forbright (NASDAQ:FRBT) Issues Earnings Results, Misses Estimates By $0.04 EPS

Forbright (NASDAQ:FRBT) posted its earnings results on Thursday. The company reported $0.09 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.04), Zacks reports. The company had revenue of $84.99 million during the quarter, compared to analysts’ expectations of $85.24 million.

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 Forbright stock traded up $0.15 during trading on Friday, hitting $19.78. The stock had a trading volume of 94,768 shares, compared to its average volume of 134,143. Forbright has a fifty-two week low of $17.48 and a fifty-two week high of $22.00.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Barclays assumed coverage on Forbright in a report on Monday, July 6th. They set an “overweight” rating and a $23.00 price target on the stock. Piper Sandler initiated coverage on shares of Forbright in a research report on Monday, July 6th. They issued a “neutral” rating and a $21.50 target price for the company. JPMorgan Chase & Co. raised their target price on shares of Forbright from $21.00 to $23.00 and gave the company a “neutral” rating in a research note on Friday. Zacks Research raised shares of Forbright to a “hold” rating in a research note on Tuesday, July 7th. Finally, Wall Street Zen upgraded shares of Forbright from a “sell” rating to a “hold” rating in a research report on Monday, July 20th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $22.40.

Forbright, Inc is a finance company in the Regional Banks industry.