SEC Filing Document

Company: Forbright, Inc.
Ticker: 
CIK: 1925062
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2026-04-08
Accession Number: 0001628279-26-000459
Exchange: 
SIC Code: 6022
SIC Description: State Commercial Banks
URL: https://www.sec.gov/Archives/edgar/data/1925062/000162827926000459/filename1.htm

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adaptable than traditional banks and we have a track record of successfully adding key capabilities to support the continued improvement of our business. While the application of AI in our business processes remains at a preliminary stage at this time, we have, and are analyzing additional, AI initiatives across several areas of our digital deposit and credit platforms. Today, we leverage AIML reasoning models and analytics to improve our ability to effectively collect and analyze data. Large language models enable processing and reporting on our semantic text datasets (customer segmentation, call center transcripts and others) by summarizing large data into specific actionable insights, such as bespoke customer sentiment scores and trend tracking. We also developed self-service tools that enable us to query more effectively; a chat-style AI agent with native integration into our data layer that allows us to run analytics and access trend data without any technical skills needed.

While AIML technologies continue to evolve, disciplined deployment, strategic investment, and strong governance will remain central to our approach as an enduring institution focused on delivering durable growth and superior returns on capital.

Risk Factor Summary

Our business is subject to a number of risks and uncertainties, as more fully described under “Risk Factors” in this prospectus. These risks could materially and adversely impact our business, financial condition, and results of operations, which could cause the trading price of our common stock to decline and could result in a loss of all or part of your investment. Some of these risks include:

•Our future success is dependent on our ability to compete effectively in a highly competitive industry.

•The middle-market businesses which we target may have fewer resources to weather adverse business developments, which may impair a borrower’s ability to repay a loan.

•We depend on the accuracy and completeness of information about clients and counterparties, which, if incorrect or incomplete, could harm our earnings.

•New lines of business, new products and services, strategic project initiatives or new partnerships may subject us to additional risks.

•We have a net deferred tax asset that may not be fully realized.

•We face significant operational risks, including fraud and loss due to execution errors, data processing and technology errors.

•Our risk management framework may not be effective in mitigating risks and/or losses to us.

•We are subject to risk arising from failure or circumvention of our controls and procedures.

•Our accounting estimates and risk management processes rely on analytical and forecasting techniques, models and judgment, which may inadequately measure risk.

•We rely heavily on our senior management team, particularly John Delaney, and other key employees.

•Managing reputational risk is important to attracting and maintaining clients, investors and employees, and damage to our reputation could have an adverse effect on us.

•Our operations could be interrupted if our third-party service providers experience difficulty, terminate their services or fail to comply with banking regulations.

•System failures in, or cybersecurity breaches of, our network security or other information technology systems could subject us to increased operating costs as well as litigation, damage to our reputation and other potential losses.

•We may not be able to measure and manage our credit risk adequately.

•Our ACL may prove to be insufficient to cover actual credit losses.

•We are subject to interest rate risk.

•Our lender finance and fund finance lending strategies may expose us to increased credit risks.

•Our healthcare finance strategy exposes us to operational complexity and changes in government payment rates that could adversely affect our results of operations.

•Our underwriting practices may not protect us against losses in our loan portfolio.

•Our largest loan relationships make up a material percentage of our total loan portfolio and credit risks relating to these would have a disproportionate impact on our business, financial condition and results of operations.

•Repayment of our construction and development loans is often dependent on the cash flows of the borrower, which may be unpredictable, and the collateral securing these loans may not be sufficient to repay the loan in the event of default.

•We are dependent on the use of data and modeling both in our management decision-making generally and in meeting regulatory expectations in particular.

•The appraisals and other valuation techniques we use in evaluating and monitoring loans secured by real property, OREO and repossessed personal property may not accurately describe the net value of the asset.

•We engage in lending secured by real estate and may be forced to foreclose on the collateral and own the underlying real estate, subjecting us to the costs and potential risks associated with the ownership of real property, including risks related to environmental laws and enforcement thereof, or consumer protection initiatives or changes in state or federal law may substantially raise the cost of foreclosure or prevent us from foreclosing at all.

•We may not be able to develop and maintain a strong core deposit base or other low-cost funding sources.

•Liquidity needs could adversely affect our business, financial condition and results of operations.

•Problems encountered by, or adverse news concerning, other financial institutions may adversely affect financial and capital markets generally as well as the Bank.

•We are subject to capital adequacy standards and, if we fail to meet these standards, or more stringent standards in the future, we will be subject to restrictions on our ability to make capital distributions and other restrictions.

•The Federal Reserve may require us to commit capital resources to support the Bank.

•Our operations may require us to raise additional capital, which may result in dilution to our then-existing stockholders and may not be available when it is needed, or at all.

•We are subject to extensive regulation and supervision, which could limit or restrict our activities and negatively impact our financial performance.

•As a result of our expanding national presence, we operate a nationwide business and are required to comply with significantly more state laws and regulations.

•Investors in this offering will experience immediate and substantial dilution.

Implications of Being an Emerging Growth Company

We qualify as an “emerging growth company” as defined in Section 2(a) of the Securities Act and the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include:

•we are only required to include two years of audited consolidated financial statements in this prospectus, in addition to any required interim financial statements, and are only required to provide reduced disclosure in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”;

•we are not required to engage an auditor to report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

•we are not required to submit certain executive compensation matters to stockholder advisory votes, such as “say-on-pay,” “say-on-frequency,” and “say-on-golden parachutes”; and

•we are not required to disclose certain executive compensation-related items such as the correlation between executive compensation and performance and comparisons of the chief executive officer’s compensation to our median employee compensation.

We may take advantage of these provisions until the last day of the fiscal year following the fifth anniversary of the completion of this offering or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company upon the earliest of (i) the last day of the first fiscal year in which our annual gross revenue is $1.235 billion or more, (ii) the date on which we have, during the previous rolling three-year period, issued more than $1.0 billion in non-convertible debt securities, and (iii) the last day of the fiscal year in which the market value of our Class A common stock held by non-affiliates exceeded $700 million as of June 30 of such fiscal year.

We have elected to adopt the reduced disclosure requirements described above regarding the number of periods for which we are providing audited financial statements and related “Management’s Discussion and Analysis of Financial Condition and Results of Operations” disclosure, and our executive compensation arrangements for purposes of the registration statement of which this prospectus is a part. In addition, we expect to take advantage of the reduced reporting and other requirements under the JOBS Act with respect to the periodic reports we will file with the SEC and proxy statements that we use to solicit proxies from our stockholders. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you invest.