Forbright (NASDAQ:FRBT) Issues Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Forbright (NASDAQ:FRBT) posted its quarterly earnings results on Thursday. The company reported $0.41 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.09, Zacks reports. The company had revenue of $89.06 million during the quarter.

Here are the key takeaways from Forbright’s conference call:

• Strong quarterly performance: Net income rose to $20.6 million, or $0.41 per diluted share, up more than 400% sequentially, while net interest income increased 14% and the efficiency ratio improved to 69.6%.
• Loan balances grew 9.5% quarter over quarter and 24% year over year across Forbright’s six specialty lending businesses. Management expects continued strong growth, with potential to modestly widen spreads on new originations and distribute more loans through BancAlliance.
• The digital deposit platform raised more than $1 billion during the quarter, up 24% sequentially, while management held its Growth Savings rate steady after the Fed’s rate increase. A phased checking-account launch is planned for the first quarter of 2027, with broader promotion expected in the second quarter.
• Credit metrics remained favorable, with core net charge-offs falling to three basis points from eight basis points in the prior quarter and non-accruals declining again. Management continues to forecast approximately 25 basis points of annualized core charge-offs and said legacy problem loans are becoming a smaller part of the portfolio.
• Excess liquidity associated with the planned sale of the Washington, D.C.-area branches and deposits weighed on the loan-to-deposit ratio and would normally have pressured NIM, although management expects fourth-quarter NIM expansion. Regulatory approval is expected in the fourth quarter, with closing targeted for the first quarter of 2027.

Forbright Trading Down 1.6%

Shares of FRBT traded down $0.30 during mid-day trading on Friday, hitting $18.13. The company’s stock had a trading volume of 34,190 shares, compared to its average volume of 124,780. The stock has a market capitalization of $920.28 million and a price-to-earnings ratio of 201.44. Forbright has a 1-year low of $16.50 and a 1-year high of $22.00. The business has a 50-day moving average of $17.99. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.95 and a quick ratio of 0.88.

Hedge Funds Weigh In On Forbright

Several hedge funds and other institutional investors have recently bought and sold shares of FRBT. Smithbridge Asset Management Inc. DE acquired a new stake in Forbright in the third quarter valued at $382,000. Readystate Asset Management LP acquired a new position in shares of Forbright during the 2nd quarter worth approximately $640,000. Finally, Wellington Management Group LLP purchased a new stake in Forbright in the 2nd quarter valued at approximately $47,496,000.

Analyst Ratings Changes

A number of analysts recently issued reports on FRBT shares. Zacks Research raised shares of Forbright from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 6th. Barclays upped their price target on Forbright from $23.00 to $24.00 and gave the company an “overweight” rating in a research note on Monday, October 5th. Piper Sandler initiated coverage on shares of Forbright in a report on Monday, July 6th. They issued a “neutral” rating and a $21.50 price objective on the stock. The Goldman Sachs Group began coverage on Forbright in a report on Monday, July 6th. They issued a “buy” rating and a $23.50 price objective on the stock. Finally, JPMorgan Chase & Co. raised shares of Forbright from a “neutral” rating to an “overweight” rating and reduced their price target for the stock from $23.00 to $22.00 in a research report on Thursday, October 1st. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $22.40.

About Forbright

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.