1. Like Ally Bank, but for middle-market businesses.

2. The "Amazon of banking" for middle-market companies and digital consumers.

• Middle-Market Lending: Forbright offers nationwide lending and credit services tailored for dynamic middle-market companies.
• Digital Consumer Banking: The company provides high-yield savings and digital time deposit products through its digital-first consumer banking platform.
• Strategic Advisory Services: Forbright delivers strategic advisory services to its business and individual clients.
• Asset Management Services: The company offers asset management services to businesses and consumers.
• Alliance Partners Business: Through its Alliance Partners program, Forbright sources and facilitates loan transactions for other financial institutions, including community banks.

Forbright (FRBT) serves a diverse customer base across its integrated financial services platform. The company's major customers fall into the following categories:

• Middle-market Companies: Forbright provides nationwide lending, strategic advisory, and asset management services to dynamic middle-market companies. This sector represents a significant portion of the U.S. economy, encompassing nearly 200,000 companies across various industries. Forbright aims to meet the scale, speed, and sector specialization demands of these borrowers.
• Consumers: Through its digital consumer banking platform, Forbright attracts and retains a loyal, digitally-engaged consumer base. These customers utilize high-yield savings accounts and digital time deposits, providing the company with a vast and flexible funding source.
• Other Financial Institutions (Community Banks): Forbright's "Alliance Partners" business sources loans for other financial institutions, including a proprietary network of over 400 community banks. This service generates recurring fee income by providing credit and asset management services to these partner banks.

John Delaney, Chairman and CEO of Forbright, Inc. and Founder and Executive Chairman of Forbright Bank.

John Delaney founded HealthCare Financial Partners Inc. in 1993, which completed its initial public offering in 1996 and was sold in 1999. In 2000, he founded CapitalSource Inc., described as the most highly capitalized private equity-backed start-up at the time, which became a public company in 2003. He served as Chairman and CEO of CapitalSource until entering public service. Delaney also served three terms in the U.S. House of Representatives, representing Maryland's Sixth Congressional District.

Chris Lynch, Chief Financial Officer of Forbright Bank and Forbright, Inc.

Chris Lynch joined Forbright as CFO in July 2023. Prior to Forbright, he served as Senior Vice President and Executive Vice President of Finance at Pacific Western Bank for nearly a decade. His experience also includes executive roles as Senior Vice President of Finance at CapitalSource and Chief Financial Officer at Walker & Dunlop. Earlier in his career, he worked in investment banking at Merrill Lynch and in treasury and finance at Marriott International.

Don Cole, President and Chief Executive Officer of Forbright Bank and President and Chief Operating Officer of Forbright, Inc.

Don Cole previously served as President and COO of Congressional Bank, Forbright's predecessor. From 2012 to 2018, he was Chief Financial Officer of Alliance Partners. He also held various roles at CapitalSource, including Chief Financial Officer from 2009 to 2011, and Chief Operations Officer, Chief Accounting Officer, and Chief Information Officer from 2003 to 2009.

Aaron Juda, Chief Strategy Officer and President of Consumer Banking.

Aaron Juda was promoted to Chief Strategy Officer and President of Consumer Banking in July 2023, having previously served as Chief Financial Officer of Forbright, Inc. He has been instrumental in key strategic initiatives for Forbright, including capital raises, the launch of national digital deposit products, an inaugural green bond issuance, and the enhancement of sustainable finance efforts. Prior to Forbright, Juda worked as an investment banker at Barclays, advising financial institutions on mergers, acquisitions, and capital raising, and as a management consultant at Accenture Strategy.

Kori Ogrosky, Chief Legal Officer and Corporate Secretary of Forbright, Inc. and Forbright Bank.

Kori Ogrosky joined Forbright in 2022. Before Forbright, she served as Executive Vice President, General Counsel, and Corporate Secretary for PacWest Bancorp. She also held positions at CapitalSource Inc., including Senior Vice President and General Counsel from 2012 to 2014, and various roles in the legal department since 2007.

1. Risk of escalating cost of digital deposits due to intense competition and shifting consumer preferences: Forbright's strategy heavily relies on its digital deposit platform to attract a loyal, digitally-engaged consumer base by offering a competitive value proposition for deposits. The company acknowledges that "increasing impact of new technologies will reduce the friction of money movement, allowing consumers to seek higher deposit yields." While Forbright is positioned to benefit from this trend, it also means the company must continuously offer competitive rates to attract and retain digital deposits. This dynamic could lead to increased funding costs, thereby impacting the company's net interest margin and profitability if not managed effectively in a highly competitive market for deposits.
2. Credit risk associated with its nationwide middle-market lending activities: As a financial institution primarily engaged in lending to middle-market companies, Forbright is exposed to the inherent credit risks of its loan portfolio. Although the company aims to generate "strong, risk-adjusted returns" from its middle-market lending strategy, adverse economic conditions, industry-specific downturns, or poor credit underwriting could lead to increased loan defaults, delinquencies, and potential loan losses, negatively impacting the company's asset quality and financial performance.
3. Technological and operational risks associated with its digital-first platform: Forbright's business model is underpinned by "modern banking systems that leverage technology to provide a robust, scalable and API-driven architecture" for efficient operations and a differentiated customer experience. This reliance on technology exposes the company to risks such as system failures, cybersecurity breaches, data privacy issues, and disruptions to its digital platforms. Any significant technological malfunction or security incident could lead to operational downtime, financial losses, damage to customer trust, and reputational harm, hindering its ability to attract and retain customers and support its growth strategy.

National Middle-Market Lending: $10 trillion (U.S.)

Digital Consumer Banking: null

Strategic Advisory and Asset Management Services: null

Here are 3-5 expected drivers of future revenue growth for Forbright (FRBT) over the next 2-3 years:

1. Expansion of the Digital Deposit Platform: Forbright launched its digital deposit platform in May 2024, accumulating $3.9 billion in digital deposits by March 31, 2026. The company expects this platform to provide significant flexibility to raise deposits "as-needed" to support future growth, directly fueling its lending activities.
2. Growth in Middle-Market Lending: The increased funding from the digital deposit platform is intended to fuel the expansion of Forbright's middle-market lending business. This strategy is designed to generate strong, risk-adjusted returns and drive meaningful fee income, as the company serves the fragmented yet sizable national middle market.
3. Growth of Fee-Based Businesses, including Alliance Partners: Forbright's Alliance Partners business, which leverages entrenched lending relationships to source loans for a network of over 400 community banks, is a source of highly attractive recurring fee income. Continued expansion and utilization of this network and other credit and asset management services are expected to contribute significantly to revenue growth.
4. Leveraging Technology for Scalability and Efficiency: Forbright's modern banking systems, robust API-driven architecture, and significant back-office automation enable efficient operations and a lower marginal cost-to-serve for its digital deposits and lending activities. This technological advantage allows the company to scale its deposit gathering and lending operations efficiently, supporting profitable revenue growth without the typical constraints of legacy systems or a branch-based model.

Inbound Investments

• In 2021, Forbright received a $369 million capital infusion led by John Delaney.