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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future than in the past and credit ratings of obligors may change over time. CPACE exposures are subject to an ACL - investment securities, however, we have never experienced a credit loss on these investment securities. As such, a qualitative ACL - investment securities is estimated based on perceived potential risk in the asset class which is generally lower than our loan portfolio. Uncertainty with the estimate exists given the lack of observable loss data in our investment portfolio for these assets and in the industry. See Note 1, “Organization and Summary of Significant Accounting Policies,” to our consolidated financial statements and the notes thereto included elsewhere in this prospectus for further discussion of CPACE exposures. The following table presents an analysis of the ACL on held-to-maturity investment securities as of and for the years ended December 31, 2025 and 2024: As of and for the years ended December 31,

(dollars in thousands) 2025 2024
Held-to-maturity:
Average held-to-maturity investment securities outstanding $	52,376 $	53,136
Total held-to-maturity investment securities outstanding at end of period $	48,944 $	52,686
ACL - investment securities:
Balance at beginning of period $	161 $	210
Recovery of credit losses on investment securities (51) (49)
Balance at end of period $	110 $	161
Ratio of allowance to total held-to-maturity investment securities at period end 0.22	% 0.31	%
Ratio of net charge-offs to average held-to-maturity investment securities —	% —	%

As of December 31, 2025, the ACL - held-to-maturity investment securities totaled $0.1 million, or 0.22% of held-to-maturity investment securities. As of December 31, 2024, the allowance totaled $0.2 million or 0.31% of held-to-maturity investment securities. The decrease in the ACL - held-to-maturity investment securities was due to a lower remaining lifetime probability of default, as well as a decrease in outstanding balance. The ACL - held-to-maturity investment securities as a percentage of held-to-maturity investment securities decreased by 9 basis points as of December 31, 2025, compared to December 31, 2024.

The following table presents the allocation of the ACL on held-to-maturity investment securities by investment type:

December 31,
(dollars in thousands) Amount % of total held-to-maturity securities Amount % of total held-to-maturity securities
Corporate bonds $	66 60.0	% $	109 67.7	%

Other 44 40.0	% 52 32.3	%
Total $	110 100.0	% $	161 100.0	%

Financing Receivables

Our financing receivables are comprised of CPACE-funded projects, which were categorized as financing receivables, based on the contract structure requirements of the municipality where the project is located. At the time of financing, CPACE financing receivables are classified as either held-for-investment at amortized cost or held-for-sale at lower of cost or fair value.

As of December 31, 2025, the carrying amount of financing receivables totaled $42.9 million, a decrease of $0.3 million, or 0.8%, compared with $43.2 million as of December 31, 2024. As of December 31, 2025, financing receivables represented 0.5% of total assets compared to 0.6% of total assets as of December 31, 2024.

The following tables summarize our investment in financing receivables as of December 31, 2025 and 2024:

As of and for the years ended December 31,

(dollars in thousands) 2025 2024
Held-for-investment:
Average held-for-investment financing receivables outstanding $	33,364 $	29,579
Total held-for-investment financing receivables outstanding at end of period $	42,902 $	29,406
ACL - held-for-investment financing receivables:
Balance at beginning of period $	74 $	75
Recovery of credit losses on financing receivables — (1)
Provision for credit losses - transfer of financing receivables from held-for-sale 34 —
Balance at end of period $	108 $	74
Ratio of allowance to total held-for-investment financing receivables at period end 0.25	% 0.25	%
Ratio of net charge-offs to average held-for-investment financing receivables —	% —	%

CPACE exposures are subject to an ACL - financing receivables, however, we have never experienced a credit loss on these assets. As such, a qualitative ACL - financing receivables is estimated based on perceived potential risk in the asset class which is generally lower than our loan portfolio. Uncertainty with the estimate exists given the lack of observable loss data in our investment portfolio for these assets and in the industry.

As of and for the years ended December 31,
(in thousands) 2025 2024
Held-for-sale:
Average held-for-sale financing receivables outstanding $	9,557 $	13,275
Total held-for-sale financing receivables outstanding at end of period $	— $	13,835

All of our financing receivables held-for-sale were transferred to held for investment during the third quarter of 2025 due to a change in strategy related to our financing receivables portfolio. As of December 31, 2025, all of our financing receivables had contractual maturity dates of greater than ten years with a weighted-average yield of 6.42%. As of December 31, 2025 and 2024, no financing receivables were on non-accrual status or deemed non-performing assets.

See Note 1, “Organization and Summary of Significant Accounting Policies,” to our consolidated financial statements and the notes thereto included elsewhere in this prospectus for further discussion of CPACE exposures.

Deposits

Our lending and investing activities are primarily funded by deposits. We offer a variety of deposit accounts having a wide range of interest rates and terms including demand, savings, money market and time accounts. We rely primarily on competitive pricing policies and customer service to attract and retain these deposits. We primarily source our deposits through our digital deposit platform underpinned by a modern core banking system that leverages advanced technology to provide a robust, scalable, and API-driven architecture that supports efficient operations and differentiated customer experience. We believe that digital deposits serve as our growth engine, providing scalable access to a vast national market beyond the reach of a legacy branch network and aligning with our lending capacity as consumer preferences shift to digital.

Deposits represent our primary source of funding and are an important component of our financial condition. Changes in deposit balances and mix are influenced by customer behavior, pricing strategies, interest rate movements, and competitive conditions. During periods of rising interest rates, customers may shift balances from non-interest-bearing deposits to interest-bearing or time deposit products, which can increase funding costs. We evaluate the stability, cost, and composition of deposits in managing liquidity and interest rate risk. Future deposit trends may affect our funding mix and could increase reliance on wholesale funding sources if deposit growth does not keep pace with asset growth.

The following table summarizes our deposit balances as of December 31, 2025 or 2024:

December 31,
2025 2024 Change
(dollars in thousands) Balance % of total Balance % of total $ %
Non-interest-bearing deposits $	372,444 5.5	% $	258,242 4.6	% $	114,202 44.2	%
Interest-bearing deposits:
Demand 275,259 4.1	% 269,320 4.8	% 5,939 2.2	%
Money market 1,206,544 17.8	% 895,605 16.1	% 310,939 34.7	%
Savings 3,500,532 51.6	% 2,342,327 42.2	% 1,158,205 49.4	%
Time deposits 1,423,136 21.0	% 1,799,838 32.3	% (376,702) (20.9)	%
Total interest-bearing deposits 6,405,471 94.5	% 5,307,090 95.4	% 1,098,381 20.7	%
Total deposits $	6,777,915 100.0	% $	5,565,332 100.0	% $	1,212,583 21.8	%

Total deposits as of December 31, 2025 were $6.8 billion, an increase of $1.2 billion, or 21.8%, compared with $5.6 billion as of December 31, 2024, primarily due to higher deposits in the digital banking growth savings product, as well as an increase in money market deposit account balances, brokered certificates of deposit, and business checking accounts.

Brokered time deposits, included in time deposits in the table above, increased to $686.5 million as of December 31, 2025 from $514.3 million as of December 31, 2024, due to new deposit issuance. Institutional sweep deposits, included in each of savings and money market in the table above, increased to $1.1 billion as of December 31, 2025, compared to $813.7 million as of December 31, 2024 due primarily to the addition of new relationships. All brokered time deposits and institutional sweep deposits are fully FDIC insured.

Non-interest-bearing deposits as of December 31, 2025, were $372.4 million, an increase of $114.2 million, or 44.2%, compared with $258.2 million as of December 31, 2024. Interest-bearing deposits were $6.4 billion as of December 31, 2025, an increase of $1.1 billion, or 20.7%, compared with $5.3 billion as of December 31, 2024.

As of December 31, 2025, the estimated aggregate amount of uninsured deposits (deposits in amounts greater than $250,000 per depositor, per account ownership category, which is the maximum amount for federal deposit insurance) was $887.9 million, which is 13.1% of total deposits.

The following table sets forth the amount of time deposits that are $250,000 or greater, by time remaining until maturity:

(in thousands) December 31, 2025
Three months or less $	78,227
Over three months through six months 62,567
Over six months through twelve months 34,917
Over twelve months 4,533
Total time deposits $	180,244

The daily average balances and weighted average rates paid on deposits for each of the years ended December 31, 2025 or 2024 are presented below:

December 31,