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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income $ 44,764 See notes to the consolidated financial statements FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Statement of Changes in Stockholders’ Equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total (dollars in thousands) Shares Amount Balance as of December 31, 2023 40,217,037 $ 40 $ 473,890 $ 197,536 $ (1,841) $ 669,625 Net income — — — 43,366 — 43,366 Other comprehensive income, net of tax — — — — 1,398 1,398 Total other comprehensive income 44,764 Exercise of stock options 63,000 — 705 — — 705 Stock-based compensation 9,000 — 7,611 — — 7,611 Shares withheld for tax withholding and exercise of stock options and restricted shares (45,121) — (751) — — (751) Balance as of December 31, 2024 40,243,916 $ 40 $ 481,455 $ 240,902 $ (443) $ 721,954 See notes to the consolidated financial statements FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Statement of Cash Flows

Year Ended
(in thousands) December 31, 2024
OPERATING ACTIVITIES
Net income $	43,366
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangible asset amortization 6,723
Recovery of credit losses (1,688)
Amortization of premiums and discounts on investment securities, net (31,134)
Amortization of deferred fees and costs on loans and financing receivables, net (18,478)
Decrease in loans originated for sale, net 90,161
Increase in financing receivables held-for-sale, at fair value, net (834)
Losses on sales of loans and financing receivables, net 11,563
Stock-based compensation 7,611
Deferred income taxes 4,115
Other 4,173
Net change in assets and liabilities:
Accrued interest receivable 3,492
Other assets 2,817
Other liabilities 1,002
Net cash provided by operating activities 122,889
INVESTING ACTIVITIES
Net decrease in loans held for investment, at amortized cost 1,252
Net decrease in loans held for investment, at fair value 19,426
Purchase of investment securities available-for-sale (1,689,349)
Proceeds, maturities, prepayments and calls of securities available-for-sale 1,105,193
Proceeds, maturities, prepayments and calls of securities held-to-maturity 783
Decrease in financing receivables held for investment, at amortized cost 365
Purchase of Federal Home Loan Bank of Atlanta stock, net (31,074)
Other (12,744)
Net cash used in investing activities (606,148)
FINANCING ACTIVITIES
Net decrease in deposits (276,653)
Proceeds from other borrowings 2,205,100
Repayments of other borrowings (1,555,100)
Proceeds from exercise of stock options under employee stock plans 705
Shares withheld for tax withholding and exercise of stock options and restricted shares (751)
Net cash provided by financing activities 373,301
Net decrease in cash, cash equivalents and restricted cash (109,958)
Beginning cash, cash equivalents and restricted cash 1,289,940
Ending cash, cash equivalents and restricted cash $	1,179,982

See notes to the consolidated financial statements

FORBRIGHT, INC. AND SUBSIDIARIES

Consolidated Statement of Cash Flows - (continued)

Year Ended
(in thousands) December 31, 2024
Supplemental cash flow disclosures:
Interest payments $	266,306

Income tax payments, net of refunds of $2,270 $	8,929
Noncash investing activity:
Loans held for investment (at amortized cost) transferred to loans held-for-sale, net $	11,536
Loans held for investment (at fair value) transferred to loans held-for-sale, net $	8,338
Loans held for investment (at amortized cost) transferred to other real estate owned $	27,355
Right-of-use assets obtained in exchange for lease liabilities $	697

See notes to the consolidated financial statements

FORBRIGHT, INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Forbright, Inc. (the “Parent”), a Delaware corporation, is a bank holding company that along with its subsidiaries (collectively the “Company”), is headquartered in Chevy Chase, Maryland. Forbright Bank (with its subsidiaries, the “Bank”), a wholly owned bank subsidiary of the Company, is a Maryland state chartered non-member bank, which serves the needs of individuals, small and medium sized businesses, and professional concerns. The Bank provides nationwide competitive deposit products and lending products, including real estate loans, working capital facilities, warehouse lines of credit and term loans with a focus on sustainability.

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), as applicable to financial institutions, and include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The typical condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. A controlling financial interest may also exist in entities through arrangements that do not involve voting interests, such as a variable interest entity (“VIE”), when a reporting entity concludes it is the primary beneficiary of the VIE. The Company has determined that it is not the primary beneficiary of any VIEs.

Emerging Growth Company Status

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as those standards apply to private companies. The Company may elect to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that the Company (1) is no longer an emerging growth company or (2) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, the valuation of the deferred tax assets, the valuation of stock-based compensation awards and the fair value of financial assets.

Cash, Cash Equivalents and Restricted Cash

For the purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, restricted cash, and interest-bearing deposits with banks, including the Federal Reserve Bank. Cash equivalents include instruments with original maturities of three months or less. At times, cash and cash equivalent balances may exceed insured limits. The Company’s restricted cash represents funds held in escrow for Commercial Property Assessed Clean Energy “(CPACE”) and construction projects until their completion. The restriction could be short- or long-term depending on the nature and length of the project the escrow supports.

Investment Securities

Investment securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Investment securities held-to-maturity are carried at amortized cost. Investment securities not classified as held-to-maturity are classified as available-for-sale and are carried at fair value, with unrealized gains and losses reported in Accumulated other comprehensive income/(loss). Investment securities classified as available-for-sale are sold if necessary to reduce the Company’s exposure to interest rate, liquidity, credit, or capital risk based on changes or expected changes in the market. Realized gains and losses on the sale of investment securities available-for-sale are included in non-interest income and, when applicable, are reported as a reclassification adjustment, net of tax, from Accumulated other comprehensive income/(loss). Gains and losses on sales of investment securities are determined using the specific-identification method. The Company determines the appropriate classification of investment securities at the time of purchase or origination based on management’s strategy at the time of origination. The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity.

In cases where fair value of an available-for-sale investment security is less than its amortized cost basis and the Company does not intend to sell the available-for-sale investment security and it is not more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis, the difference between the fair value and the amortized cost basis is separated into (a) the amount representing the credit loss and (b) the amount related to all other factors. The difference between fair value and amortized cost basis attributable to changes in risk free rates is considered non-credit related, any remaining difference between fair value and amortized cost basis is deemed to be credit related. The Company presumes that Federal Agency and Treasury investment securities have no credit risk and therefore does not evaluate them for an allowance for credit loss. If the Company intends to sell the security, or it is more likely than not to be required to sell the security before recovery of the amortized cost basis, the security is written down to fair value with the entire amount recognized in earnings.

See Note 3 – Investment Securities for more information.