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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Financing Receivables Held for Investment at Amortized Cost As of December 31, 2025 and 2024, the Company had $42.8 million and $29.3 million, respectively, of financing receivables held for investment, at amortized cost, and net of allowance for credit losses. Total outstanding financing receivables held for investment, at amortized cost, are net of direct funding related income and costs of $180 thousand and $78 thousand as of December 31, 2025 and 2024, respectively. The following table summarizes the activity in the allowance for credit losses for financing receivables held for investment, at amortized cost, for the years ended December 31, 2025 and 2024: (in thousands) December 31, 2025 December 31, 2024 Balance at beginning of period $ 74 $ 75 Recovery of credit losses — (1) Provision for credit losses - transfer of financing receivables from held-for-sale 34 — Balance at end of period $ 108 $ 74 Equity Investments

The Company holds equity investments for various business purposes. As of December 31, 2025 and 2024, the Company had $13.1 million and $44.8 million, respectively, of equity investments, which are included with Other earning assets in the Consolidated Balance Sheets. During the year ended December 31, 2025, the Company had net sales of $33.0 million of FHLB common stock in coordination with the net repayment of outstanding FHLB advances. As of December 31, 2024, the majority of equity investments was comprised of FHLB common stock purchased in connection with securing FHLB advances. See Note 10 – Borrowed Funds for more information on the outstanding FHLB advances.

NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS

The following tables summarize 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 Goodwill and other intangible assets, net in the Consolidated Balance Sheets, as of December 31, 2025 and 2024:

December 31, 2025
(dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount
Amortizing intangible assets:
Core deposit intangible $	1,491 $	(1,491) $	—
Customer relationship intangibles 18,742 (7,690) 11,052
Other 399 (399) —
Total amortizing intangible assets $	20,632 $	(9,580) $	11,052
Indefinite life intangible asset 2,114
Total intangible assets 13,166
Goodwill 18,519
Total goodwill and intangible assets, net $	31,685

December 31, 2024
(dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount
Amortizing intangible assets:
Core deposit intangible $	1,491 $	(1,342) $	149
Customer relationship intangibles 18,742 (6,557) 12,185
Other 399 (319) 80
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 Statements of Income, as of December 31, 2025:

(in thousands) Amount
Thereafter 5,717
Total amortizing intangible assets $	11,052

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 years ended December 31, 2025 and 2024:

(dollars in thousands) December 31, 2025 December 31, 2024
Components of operating lease expense:
Long-term lease expense $	3,248 $	3,335
Short-term lease expense $	144 $	138
Supplemental cash flow information related to leases:
Operating cash flows from operating leases $	3,614 $	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 $	15,691 $	18,393
Operating lease liabilities $	20,077 $	23,150
Other information related to leases:
Weighted-average remaining lease term of operating leases 6.2 years 7.1 years
Weighted-average discount rate of operating leases 2.60	% 2.60	%

The following table presents the maturities of the Company’s operating lease liabilities as of December 31, 2025, for the years indicated:

(in thousands) Amount
Thereafter 4,122
Total minimum lease payments 21,755
Less: present value discount (1,678)
Operating lease liability $	20,077

NOTE 9 – DEPOSITS

Deposit balances as of December 31, 2025 and 2024, are presented in the following table:

(in thousands) December 31, 2025 December 31, 2024

Non-interest-bearing deposits $	372,444 $	258,242
Interest-bearing deposits:
Demand 275,259 269,320
Money market 1,206,544 895,605
Savings 3,500,532 2,342,327
Time deposits less than $250 thousand 1,242,892 1,484,872
Time deposits greater than $250 thousand 180,244 314,966
Total interest-bearing deposits 6,405,471 5,307,090
Total deposits $	6,777,915 $	5,565,332

As of December 31, 2025 and 2024, $14 thousand and $84 thousand, respectively, of demand deposit overdrafts were reclassified to loans. The related charge-offs and recoveries, if any, are reflected in the allowance for credit losses - loans.

The following table presents the maturities of time deposits as of December 31, 2025, for the years indicated:

(in thousands) Amount
Thereafter —
Total time deposits $	1,423,136

The Company’s time deposits of $250 thousand or greater represented 12.7% of total time deposits as of December 31, 2025, 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 $	78,227 $	62,567 $	34,917 $	4,533 $	180,244

Deposits received in the ordinary course of business from related parties held as of December 31, 2025 and 2024, were $5.2 million and $7.1 million, respectively. 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 7.0% semi-annually, in arrears. The Company redeemed the 2016 Fixed Rate Notes at par in 2025.

In 2016, the Company issued $7.0 million of Fixed to Floating Rate Subordinated Notes (“2016 Fixed to Floating Notes”). The 2016 Fixed to Floating Notes are unsecured, mature on December 30, 2026, and paid an initial interest of 6.5% semi-annually, in arrears. Beginning on December 30, 2021, the 2016 Fixed to Floating Notes

interest rate reset quarterly to an interest rate per annum equal to the three-month LIBOR plus 469.50 basis points, paid quarterly in arrears. If the three-month LIBOR was less than zero, the three-month LIBOR was deemed to be zero. Due to the cessation of LIBOR on June 30, 2023, the 2016 Fixed to Floating Notes interest rate resets quarterly to an interest rate per annum equal to the three-month Secured Overnight Financing Rate (“SOFR”) plus 495.70 basis points, paid quarterly in arrears. If the three-month SOFR is less than zero, the three-month SOFR shall be deemed to be zero. The SOFR-based interest rate became effective on October 1, 2023. The Company redeemed the 2016 Fixed to Floating Notes at par in 2025.

In 2019, the Company issued $25.0 million of Fixed to Floating Rate Subordinated Notes (“2019 Notes”). The 2019 Notes are unsecured, mature on December 1, 2029, and paid an initial interest of 5.75% semi-annually, in arrears. Beginning on December 1, 2024, the 2019 Notes interest rate resets quarterly to an interest rate per annum equal to the three-month SOFR plus 439 basis points, paid quarterly in arrears. If the three-month SOFR is less than zero, the three-month SOFR shall be deemed to be zero. The Company may redeem the 2019 Notes at par.

On December 22, 2021, the Company issued $125.0 million of Fixed to Floating Rate Subordinated Notes (“2021 Notes”). The 2021 Notes are unsecured, mature on January 1, 2032 and pay an initial interest of 4.00% semi-annually through January 1, 2027, in arrears. Beginning on January 1, 2027, through the earlier of maturity date or the early redemption date, the interest rate will adjust quarterly equal to the three-month term SOFR plus 289 basis points, paid quarterly in arrears. The 2021 Notes are non-callable for the first five years; the Company has the option to redeem the 2021 Notes at par value, after five years from the date of issuance. The 2021 Notes are classified as Green Bonds in alignment with the International Capital Markets Association’s Green Bond Principles (2021).