SEC Filing Document

Company: Forbright, Inc.
Ticker: 
CIK: 1925062
Filing Type: DRS
Document Type: DRS
Date Filed: 2026-02-13
Accession Number: 0001628279-26-000183
Exchange: 
SIC Code: 6022
SIC Description: State Commercial Banks
URL: https://www.sec.gov/Archives/edgar/data/1925062/000162827926000183/filename1.htm

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loans were on non-accrual status as of December 31, 2024. During the year ended December 31, 2024, $67 thousand of Commercial loans to borrowers experiencing financial difficulty had a payment default in the twelve months subsequent to modifications made in the form of a payment delay. Loans Held for Investment at Fair Value The following table presents by class and by credit quality indicator, the recorded investment in the Company’s loans held for investment at fair value as of December 31, 2024: December 31, 2024 (in thousands) Commercial Total Acceptable risk (or better) $ 4,231 $ 4,231 Higher risk 1,058 1,058 Special mention 1,020 1,020 Substandard 772 772 Doubtful — — Total $ 7,081 $ 7,081 The following table presents, by class, information on loans held for investment at fair value on non-accrual status and loans 90 days or more past due and still accruing as of December 31, 2024:

December 31, 2024
Fair Value Unpaid Contractual Balance
(in thousands) Commercial Total Commercial Total
Non-accrual loans $	349 $	349 $	606 $	606
Loans 90 days or more past due and still accruing — — — —
Total $	349 $	349 $	606 $	606

The following table presents by class, an aging analysis and the recorded investments in past due loans held for investment at fair value as of December 31, 2024:

December 31, 2024
(in thousands) Commercial Total
Past due loans:
30 - 59 days past due $	— $	—
60 - 89 days past due — —
90 or more days past due — —
Total past due loans — —
Current loans 7,081 7,081
Total $	7,081 $	7,081

Other Real Estate Owned

The following table presents by class the recorded investment in the Company’s other real estate owned assets at fair value as of December 31, 2024:

(in thousands) Commercial Real Estate Total
Balance at beginning of period $	— $	—
Loans held for investment (at amortized cost) transferred to other real estate owned 27,355 27,355
Improvements 277 277
Valuation adjustments (2,156) (2,156)
Balance at end of period $	25,476 $	25,476

During the year ended December 31, 2024, the Company foreclosed on and transferred five assets from loans held for investment at amortized cost to other real estate owned assets. Other real estate owned assets are included with Other assets in the Consolidated Balance Sheet. During the year ended December 31, 2024, the Company incurred a non-material amount of expense related to holding other real estate owned assets, which is included in Other non-interest expense in the Consolidated Statement of Income. Subsequent to foreclosure, the Company determined the fair values of three of its other real estate owned assets had declined, and the Company recorded a valuation adjustment, which is included in Other non-interest income in the Consolidated Statement of Income. There were no sales of other real estate owned assets during the year ended December 31, 2024.

NOTE 6 – OTHER FINANCING RECEIVABLES

Financing Receivables Held-for-Sale at Lower of Cost or Fair Value

As of December 31, 2024, the Company had $13.8 million of financing receivables held-for-sale. The Company recognized a recovery of previously recognized unrealized losses related to financing receivables held-for-sale of $385 thousand for the year ended December 31, 2024. Unrealized losses related to financing receivables held-for-sale are included with Unrealized gains on loans and financing receivables, net in the Consolidated Statement of Income.

There were no sales of financing receivables held-for-sale during the year ended December 31, 2024.

Financing Receivables Held for Investment at Amortized Cost

As of December 31, 2024, the Company had $29.3 million of financing receivables held for investment, at amortized cost, and net of allowances for credit loss. Total outstanding financing receivables held for investment, at amortized cost, are net of direct funding related income and costs of $78 thousand as of December 31, 2024.

There were no transfers between financing receivables held-for-sale, at lower of cost or fair value, and financing receivables held for investment, at amortized cost, during the year ended December 31, 2024.

The following table summarizes the activity in the allowance for credit losses for financing receivables held for investment, at amortized cost, for the year ended December 31, 2024:

(in thousands) December 31, 2024
Balance at beginning of period $	75
Recovery of credit losses (1)
Balance at end of period $	74

NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS

The following table summarizes the gross carrying amount and accumulated amortization, by type of amortizing other intangible asset, and the carrying amount of non-amortizing other intangible assets and goodwill, which are included in Other assets in the Consolidated Balance Sheet, as of December 31, 2024:

December 31, 2024
(dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Life
Amortizing intangible assets:

Core deposit intangible $	1,491 $	(1,342) $	149 1.0 year

Customer relationship intangibles 18,742 (6,557) 12,185 12.0 years

Other 399 (319) 80 1.0 year
Total amortizing intangible assets $	20,632 $	(8,218) $	12,414
Indefinite life intangible asset 2,114
Total intangible assets 14,528
Goodwill 18,519
Total goodwill and intangible assets, net $	33,047

The following table presents the estimated future amortization expense for amortizing intangible assets, which is included in Other non-interest expense in the Consolidated Statement of Income, as of December 31, 2024:

(in thousands) Amount
Thereafter 6,525
Total amortizing intangible assets $	12,414

NOTE 8 – LEASES

The Company has 10 leases, all of which are currently classified as operating. The Company’s locations are deposit production offices, branches, and corporate office space, mostly located in the Washington, DC metro area. The headquarters lease, located in Chevy Chase, Maryland is considered to be critical to the Company’s operations. Some lease agreements include one or more options to renew, with renewal terms that can extend the original lease term from two to ten years. The Company currently does not believe it is reasonably certain it will exercise the renewal options for its leases, and therefore, the lease terms do not reflect any optional periods.

The following table provides information regarding the Company’s leases as of and for the year ended December 31, 2024:

(dollars in thousands) December 31, 2024
Components of operating lease expense:
Long-term lease expense $	3,335
Short-term lease expense $	138
Supplemental cash flow information related to leases:
Operating cash flows from operating leases $	3,786
Right-of-use assets obtained in exchange for lease liabilities for new leases and lease modifications $	697
Supplemental balance sheet information related to leases:
Operating lease right-of-use assets $	18,393
Operating lease liabilities $	23,150
Other information related to leases:
Weighted-average remaining lease term of operating leases 7.1 years
Weighted-average discount rate of operating leases 2.60	%

The following table presents the maturities of the Company’s operating lease liabilities as of December 31, 2024, for the years indicated:

(in thousands) Amount
Thereafter 7,793
Total minimum lease payments 25,423
Less: present value discount (2,273)
Operating lease liability $	23,150

NOTE 9 – DEPOSITS

Deposit balances as of December 31, 2024, are presented in the following table:

December 31, 2024
(in thousands) Balance

Non-interest-bearing deposits $	258,242
Interest-bearing deposits:
Demand 269,320
Money market 895,605
Savings 2,342,327
Time deposits less than $250 thousand 1,484,872
Time deposits greater than $250 thousand 314,966
Total interest-bearing deposits 5,307,090
Total deposits $	5,565,332

As of December 31, 2024, $84 thousand of demand deposit overdrafts were reclassified to loans. The related charge-offs and recoveries, if any, are reflected in the allowance for credit losses.

The following table presents the maturities of time deposits as of December 31, 2024, for the years indicated:

(in thousands) Amount
Thereafter —
Total time deposits $	1,799,838

The Company’s time deposits of $250 thousand or greater represented 5.7% of total deposits as of December 31, 2024, and are presented by maturity in the following table:

Months to Maturity
(in thousands) 3 or Less Over 3 to 6 Over 6 to 12 Over 12 Total
Time deposits greater than $250 thousand $	109,647 $	131,318 $	69,344 $	4,657 $	314,966

Deposits received in the ordinary course of business from related parties held as of December 31, 2024, were $7.1 million. See Note 19 – Related Party Transactions for more information.

NOTE 10 – BORROWED FUNDS

Subordinated Debt

In 2016, the Company issued $17.0 million of Fixed Rate Subordinated Notes (“2016 Fixed Rate Notes”). The 2016 Fixed Rate Notes are unsecured, mature on December 30, 2026 and pay interest of 7.00% semi-annually, in arrears. The Company redeemed the 2016 Fixed Rate Notes at par in 2025, resulting in the recognition of a loss on repayment of debt in other non-interest income related to unamortized debt issuance costs.