A fast-growing bank that got hit with an enforcement action in connection with the staying power of its deposits has resolved the matter after building out a digital banking arm.
Forbright Bank, which is headquartered in Potomac, Maryland,
The bank, which focuses on financing the transition to clean energy sources, relied heavily on brokered deposits to fund its rapid loan growth. Shortly after the May 2024 consent order was announced, Forbright said it had already made "significant progress" in addressing the FDIC's concerns, pointing to the digital bank it launched the previous year.
The FDIC, which worked with Maryland bank regulators in addressing Forbright's funding issues, said last week that it recently terminated the consent order.
"We are pleased these matters are resolved and appreciate the collaboration of the FDIC and Maryland Office of Financial Regulation," Forbright CEO Don Cole said in a written statement. "The remarkable speed at which the orders were lifted demonstrates the talent and dedication of our team alongside the thorough and efficient work of regulators."
Forbright, once known as Congressional Bank, rebranded four years ago as a climate-friendly lender. One of its business lines involves connecting homeowners and contractors with financing options for home energy upgrades.
After starting 2021 with less than $2 billion of assets, the bank had grown to nearly $7.3 billion of assets by the end of March 2025. But Forbright's size was recently constrained by
Regulators had expressed concern about the bank's reliance on so-called hot money, which often moves in search of higher yields, making it less reliable than traditional retail deposits. In late 2022, the percentage of Forbright's deposits that were brokered peaked at more than 60%, according to regulatory data.
Forbright Executive Chairman John Delaney is a former Democratic member of Congress who previously ran the commercial lender CapitalSource. As Forbright was gearing up to pivot its business model in 2021, the company raised $345 million in capital from firms that included Centerbridge Partners, Bayview Asset Management and Gallatin Point Capital.
Forbright's year-old digital banking platform appears to have been a key factor in resolving the regulators' concerns about its funding. The digital bank has tens of thousands of customers nationwide, according to a bank spokesperson.
As of Monday, Forbright was offering a 4% annual percentage yield on a nine-month certificate of deposit, as long as customers maintained a $1,000 minimum balance. It was also advertising a 4.25% APY on online savings accounts, which landed it on
Despite its progress with regulators, Forbright recently had a separate compliance issue. In late April, the FDIC ordered the bank to pay a $75,500 civil money penalty in connection with alleged flood insurance violations. The bank did not admit or deny that it violated the law or regulations.
Forbright has remedied the flood insurance issues, which stemmed from a 2022 exam, according to a source familiar with the situation.
