SEC Filing Document

Company: Forbright, Inc.
Ticker: 
CIK: 1925062
Filing Type: S-1
Document Type: S-1
Date Filed: 2026-05-15
Accession Number: 0001628280-26-035713
Exchange: 
SIC Code: 6022
SIC Description: State Commercial Banks
URL: https://www.sec.gov/Archives/edgar/data/1925062/000162828026035713/forbright-sx1publicflip.htm

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of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. We periodically review and, if necessary, update the credit quality indicator assigned to each of the loans on a case-by-case basis. The following tables summarize our held for investment at amortized cost loan portfolio by credit quality indicator as of March 31, 2026, December 31, 2025, and December 31, 2024: March 31, 2026 (in thousands) Acceptable Risk Higher Risk Special Mention Substandard Doubtful Total Commercial Real Estate $ 2,224,020 $ 334,670 $ — $ 121,182 $ — $ 2,679,872 Commercial and Industrial 2,392,221 37,164 38,349 14,682 3,002 2,485,418 Consumer 201,718 7,859 — 1,670 — 211,247 Total loans held for investment at amortized cost $ 4,817,959 $ 379,693 $ 38,349 $ 137,534 $ 3,002 $ 5,376,537

December 31, 2025
(in thousands) Acceptable Risk Higher Risk Special Mention Substandard Doubtful Total

Commercial Real Estate $	2,075,215 $	386,499 $	— $	67,282 $	— $	2,528,996
Commercial and Industrial 2,399,907 55,114 1 17,987 2,540 2,475,549
Consumer 210,504 5,328 — 1,857 — 217,689

Total loans held for investment at amortized cost $	4,685,626 $	446,941 $	1 $	87,126 $	2,540 $	5,222,234

December 31, 2024
(in thousands) Acceptable Risk Higher Risk Special Mention Substandard Doubtful Total

Commercial Real Estate $	1,162,350 $	413,517 $	103,162 $	51,854 $	— $	1,730,883
Commercial and Industrial 1,809,606 109,226 2,326 63,147 2,152 1,986,457
Consumer 239,980 5,531 — 1,122 — 246,633

Total loans held for investment at amortized cost $	3,211,936 $	528,274 $	105,488 $	116,123 $	2,152 $	3,963,973

The change in allocation between credit quality indicators in our held for investment at amortized cost loan portfolio as of March 31, 2026, compared to December 31, 2025, was primarily due to two lender finance loans being downgraded to special mention, and one healthcare finance loan and one real estate finance loan being downgraded to substandard during the three months ended March 31, 2026.

The change in allocation between credit quality indicators in our held for investment at amortized cost loan portfolio as of December 31, 2025, compared to December 31, 2024, was broadly due to loan payoffs in the higher risk, special mention, and substandard categories during the year, and to a lesser extent upgrades in credit quality indicator, offset partially by downgrades.

A loan is considered delinquent when principal or interest payments are 30 days or more past due. Typically, the accrual of interest on loans is discontinued when principal or interest payments are 90 days or more past due, or when, in the opinion of management, there is a reasonable doubt as to collectability in the normal course of business. See Note 5, “Credit Quality,” to our consolidated financial statements and the notes thereto included elsewhere in this prospectus for more information on our past due loan aging schedule.

Investment Securities

We use our investment securities portfolio to manage interest rate risk and as a source of income and liquidity for cash requirements. As of March 31, 2026, the carrying amount of investment securities totaled $1.3 billion, a decrease of $19.3 million, or 1.5%, compared with $1.3 billion as of December 31, 2025. As of December 31, 2025, the carrying amount of investment securities totaled $1.3 billion, a decrease of $220.3 million, or 14.5%, compared with $1.5 billion as of December 31, 2024. As of March 31, 2026, December 31, 2025, and December 31, 2024, investment securities represented 15.6%, 16.5%, and 21.0% of total assets, respectively.

At the date of purchase, we are required to classify investment securities into one of two categories: held-to-maturity or available-for-sale. We primarily acquire investment securities as available-for-sale, however, we may elect certain investment securities that are acquired as held-to-maturity based on our strategy given the particular investment security acquired and current market conditions and expectation.

The following table summarizes the carrying value by classification of securities as of the dates shown:

March 31, 2026 December 31, 2025 Change

(dollars in thousands) Amount (1) % of total securities Amount (1) % of total securities $ %
Available-for-sale securities:
U.S. Treasury and government agencies $	776,453 60.4	% $	958,347 73.4	% $	(181,894) (19.0)	%

Residential agency mortgage-backed 264,101 20.6	% 139,077 10.7	% 125,024 89.9	%

Commercial agency mortgage-backed 176,221 13.7	% 136,070 10.4	% 40,151 29.5	%
Municipal bonds 8,498 0.7	% 8,635 0.7	% (137) (1.6)	%

Other 10,326 0.8	% 12,758 1.0	% (2,432) (19.1)	%
Total investment securities available-for-sale $	1,235,599 96.2	% $	1,254,887 96.2	% $	(19,288) (1.5)	%
Held-to-maturity securities:
Municipal bonds $	31,200 2.4	% $	31,200 2.4	% $	— —	%

Other 17,744 1.4	% 17,744 1.4	% — —	%
Total investment securities held-to-maturity $	48,944 3.8	% $	48,944 3.8	% $	— —	%
Total investment securities $	1,284,543 100.0	% $	1,303,831 100.0	% $	(19,288) (1.5)	%

(1)Available-for-sale investment securities are reported at fair value and held-to-maturity investment securities are reported at amortized cost.

Total available-for-sale investment securities decreased $19.3 million, or 1.5%, from $1.3 billion as of December 31, 2025 to $1.2 billion as of March 31, 2026, primarily due to a decline of $181.9 million of U.S. Treasury and government agencies securities, partially offset by an increase in residential and commercial agency mortgage-backed securities of $165.2 million.

Held-to-maturity investment securities were $48.9 million as of both December 31, 2025 and March 31, 2026.

The following table summarizes the carrying value by classification of securities as of the dates shown:

December 31, 2025 December 31, 2024 Change

(dollars in thousands) Amount (1) % of total securities Amount (1) % of total securities $ %
Available-for-sale securities:
U.S. Treasury and government agencies $	958,347 73.4	% $	1,390,681 91.2	% $	(432,334) (31.1)	%

Residential agency mortgage-backed 139,077 10.7	% 16,171 1.1	% 122,906 760.0	%

Commercial agency mortgage-backed 136,070 10.4	% 36,577 2.4	% 99,493 272.0	%
Municipal bonds 8,635 0.7	% 8,292 0.5	% 343 4.1	%

Other 12,758 1.0	% 19,747 1.3	% (6,989) (35.4)	%
Total investment securities available-for-sale $	1,254,887 96.2	% $	1,471,468 96.5	% $	(216,581) (14.7)	%
Held-to-maturity securities:
Municipal bonds $	31,200 2.4	% $	31,690 2.1	% $	(490) (1.5)	%

Other 17,744 1.4	% 20,996 1.4	% (3,252) (15.5)	%
Total investment securities held-to-maturity $	48,944 3.8	% $	52,686 3.5	% $	(3,742) (7.1)	%
Total investment securities $	1,303,831 100.0	% $	1,524,154 100.0	% $	(220,323) (14.5)	%

(1)Available-for-sale investment securities are reported at fair value and held-to-maturity investment securities are reported at amortized cost.

Total available-for-sale investment securities decreased $216.6 million, or 14.7%, from $1.5 billion as of December 31, 2024 to $1.3 billion as of December 31, 2025, primarily due to a decline of $432.3 million of U.S. Treasury and government agencies securities, partially offset by an increase in residential and commercial agency mortgage-backed securities of $222.4 million.

Held-to-maturity investment securities decreased $3.7 million, or 7.1%, from $52.7 million as of December 31, 2024 to $48.9 million as of December 31, 2025, due to expected paydowns.

The following table summarizes the amortized cost and their weighted average yields as of March 31, 2026, by contractual maturities. The contractual maturity of a mortgage-backed security is the date at which the last underlying mortgage matures.

March 31, 2026
Available-for-sale Held-to-maturity
(dollars in thousands) Amortized Cost Yield Amortized Cost Yield
U.S. Treasury and government agencies:
One year or less $	518,645 4.10	% $	— —	%
One to five years 256,220 4.04	% — —	%
Five to ten years — —	% — —	%
After ten years — —	% — —	%
Residential agency mortgage-backed:
One year or less $	— —	% $	— —	%
One to five years 89 1.58	% — —	%
Five to ten years — —	% — —	%
After ten years 265,955 4.47	% — —	%
Commercial agency mortgage-backed:
One year or less $	— —	% $	— —	%
One to five years 18,799 4.76	% — —	%
Five to ten years 13,379 4.72	% — —	%
After ten years 145,285 5.04	% — —	%
Municipal bonds:
One year or less $	— —	% $	— —	%
One to five years 3,075 3.24	% 31,200 9.00	%
Five to ten years — —	% — —	%
After ten years 6,408 2.92	% — —	%
Other:
One year or less $	— —	% $	— —	%
One to five years — —	% — —	%
Five to ten years 5,000 3.87	% — —	%
After ten years 5,958 6.05	% 17,744 5.62	%
Total investment securities $	1,238,813 4.29	% $	48,944 7.77	%