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

Chunk 8 of 87
Word Count: 1497
Character Count: 10214

Document Content:

be expected in any future period. You should read the summary consolidated financial and other data presented below in conjunction with the information included under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the financial statements and the related notes included elsewhere in this prospectus. As of and for the year ended December 31, Dollars in thousands except share and per share data 2025 2024 Consolidated Statements of Operations Data Interest income $ $ 501,155 Interest expense 271,599 Net interest income 229,556 Recovery of credit losses (1,688) Net interest income after recovery of credit losses 231,244 Non-interest income 23,113 Non-interest expense 199,990 Income before income taxes 54,367 Income tax expense 11,001 Net income 43,366 Other comprehensive income 1,398 Total comprehensive income $ $ 44,764 Consolidated Balance Sheet Data Cash, cash equivalents and restricted cash $ $ 1,179,982 Investment securities available-for-sale, at fair value 1,471,468

Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses of and $161, respectively 52,525
Loans held-for-sale 316,484
Loans held for investment, at fair value 7,081
Loans held for investment, at amortized cost 3,963,973
Allowance for credit losses (42,294)
Net loans held for investment, at amortized cost 3,921,679
Financing receivables held-for-sale, at lower of cost or fair value 13,835

Financing receivables held for investment, at amortized cost, net of allowance for credit losses of and $74, respectively 29,332
Deferred tax asset, net 40,181
Accrued interest receivable 35,525
Other assets 182,842
Total assets $ $	7,250,934
Non-interest-bearing deposits $ $	258,242

Interest-bearing deposits 5,307,090
Total deposits 5,565,332

As of and for the year ended December 31,

Dollars in thousands except share and per share data 2025 2024

Subordinated debt, net 174,526
Other borrowings 700,000
Total borrowed funds 874,526
Other liabilities 89,122
Total liabilities 6,528,980

Preferred stock, $0.001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding —

Common stock, $0.001 par value per share; 103,200,000 shares authorized; and 40,243,916 shares issued and outstanding, respectively 40
Additional paid-in capital 481,455
Retained earnings 240,902
Accumulated other comprehensive loss (443)
Total stockholders’ equity 721,954
Total liabilities and stockholders’ equity $ $	7,250,934

Per Share Data
Basic earnings per voting common share $ $	1.08
Basic earnings per non-voting common share $ $	1.08
Diluted earnings per voting common share $ $	1.05
Diluted earnings per non-voting common share $ $	1.05
Weighted-average shares used to compute earnings per voting common share:
Basic 18,971,357
Diluted 20,001,805
Weighted-average shares used to compute earnings per non-voting common share, basic and diluted 21,242,551

Performance Ratios

Credit Quality Ratios

Capital Ratios

RISK FACTORS

Investing in our Class A common stock involves a high degree of risk. You should consider and read carefully all of the risks and uncertainties described below, as well as other information included in this prospectus, including our consolidated financial statements and related notes and results of operations appearing elsewhere in this prospectus, before making an investment decision with respect to the Class A common stock offered hereby. The risks described below are not the only ones we face. The occurrence of any of the following risks or additional risks and uncertainties not presently known to us or that we currently believe to be immaterial could materially and adversely affect our business, financial conditions or results of operations. In such case, the trading price of our Class A common stock could decline, and you may lose some or all of your original investment.

Risks Related to Our Operations

Our future success is dependent on our ability to compete effectively in a highly competitive industry.

We compete for attracting deposits, making loans and conducting other financing initiatives. In addition to our many competitors in the banking sector, our principal non-bank competitors are private credit funds, credit unions, and savings and loan associations, including large national financial institutions. We also compete with financial technology companies, consumer financial companies, and other non-bank providers of financial services. Many of our competitors are larger than us, have more resources, greater brand recognition, and more extensive and established footprints than we do and may be able to attract customers and consumers more effectively than we can. Because of their scale, many of these competitors can be more aggressive than we can on loan and deposit pricing, and may better afford and make broader use of media advertising, support services and technology than we do. Also, many of our non-bank competitors have fewer regulatory constraints and may have lower cost structures. We compete with these other financial institutions both in attracting deposits, making loans and other financing initiatives. We expect competition to continue to increase as a result of legislative, regulatory and technological changes, the continuing trend of consolidation in the financial services industry and the emergence of alternative providers of traditional banking products and services. Our profitability in large part depends upon our continued ability to compete successfully with traditional and new financial services providers, some of which maintain a physical presence and others of which maintain only a virtual presence. An increase in competition could require us to increase the rates we pay on deposits and/or lower the rates that we offer on loans, which could reduce our profitability.

The process of eliminating banks as intermediaries, known as “disintermediation,” could result in the loss of fee income, as well as the loss of customer deposits and the related income generated from those deposits. Consumers can maintain funds that would have historically been held as bank deposits in brokerage accounts or mutual funds. Consumers can also complete transactions such as paying bills and/or transferring funds directly without the assistance of banks. In addition, the emergence, adoption and evolution of new technologies that do not require intermediation, including distributed ledgers such as digital assets and blockchains, as well as advances in robotic process automation and AI, could significantly affect the competition for financial services. For example, growth in cryptocurrency and DeFi could reduce traditional banking deposits and income streams, challenging our ability to attract and retain consumers. A substantial shift of consumer deposits to these alternative products could adversely affect our liquidity position, funding costs, and overall financial stability. Regulatory uncertainty regarding cryptocurrency and DeFi could further complicate our strategic decisions, increase compliance costs, and potentially expose us to reputational and operational risks.

Furthermore, we operate in a highly competitive industry that could become even more competitive as a result of continued industry consolidation. This consolidation may produce larger, better capitalized and more diversified companies that are capable of offering a wider array of financial products and services at more competitive prices due to cost savings and shared resources.

Our profitability in large part depends upon our continued ability to compete successfully with traditional and new financial services providers. Our ability to compete successfully depends on a number of factors, including, among other things: (i) the ability to develop, maintain and build long-term customer relationships based on top quality service and high ethical standards; (ii) the scope, relevance and pricing of products and services offered to

meet customer needs and demands; (iii) the rate at which we introduce new products and services relative to our competitors; and (iv) consumer satisfaction with our level of service. Failure to perform in any of these areas could significantly weaken our competitive position, which could adversely affect our growth and profitability, which, in turn, could have a material adverse effect on our business, financial condition and results of operations.

The middle-market businesses which we target may have fewer resources to weather adverse business developments, which may impair a borrower’s ability to repay a loan.

Our primary lending strategy is to serve the banking and financial services needs of middle-market businesses. These businesses generally have fewer financial resources in terms of capital or borrowing capacity than larger entities, frequently have smaller market shares than such competition, may be more vulnerable to economic downturns, often need substantial additional capital to expand or compete, and may experience substantial volatility in operating results, any of which may impair their ability as a borrower to repay a loan.

In addition, the success of middle-market businesses often depends on the management skills, talents and efforts of a smaller group of people, and the death, disability or resignation of one or more of these people could have an adverse impact on the business and its ability to repay its loan. If general economic conditions negatively impact the industries we serve or any of our borrowers otherwise are affected by adverse business developments, our middle-market borrowers may be disproportionately affected and their ability to repay outstanding loans may be negatively affected, the collateral we hold may decrease in value or become illiquid, and the level of nonperforming loans, charge-offs, and delinquencies could rise and require significant additional provisions for credit losses, resulting in an adverse effect on our business, financial condition and results of operations.

We depend on the accuracy and completeness of information about clients and counterparties, which, if incorrect or incomplete, could harm our earnings.