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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2025 compared to December 31, 2024. The following tables present activity in the ACL - loans by loan category, for the years ended December 31, 2025 and 2024. Allocation of a portion of the ACL - loans to one category of loans does not preclude its availability to absorb losses in other categories. For the Year Ended December 31, 2025 (dollars in thousands) Commercial Real Estate Commercial Residential Real Estate Consumer Solar Total Total loans outstanding at end of period, at amortized cost $ $ $ $ $ $ ACL - loans: Beginning of period $ $ $ $ $ $ Provision for credit losses on loans Provision for credit losses - transfers of loans Loan charge-offs Loan recoveries Net charge-offs End of period $ $ $ $ $ $ ACL - loans to loan type ratio % % % % % % For the Year Ended December 31, 2024

(dollars in thousands) Commercial Real Estate Commercial Residential Real Estate Consumer Solar Total
Total loans outstanding at end of period, at amortized cost $	1,694,575 $	1,978,130 $	71,037 $	126 $	220,105 $	3,963,973
ACL - loans:
Beginning of period $	22,102 $	26,460 $	1,739 $	11,743 $	12,701 $	74,745
Provision for/(recovery of) credit losses - loans 5,858 78 (1,027) 172 5,815 10,896
Recovery of credit losses - transfers of loans (58) (158) — (9,332) — (9,548)
Loan charge-offs (16,495) (7,359) — (3,629) (8,749) (36,232)
Loan recoveries 200 359 47 1,079 748 2,433
Net (charge-offs)/recoveries (16,295) (7,000) 47 (2,550) (8,001) (33,799)
End of period $	11,607 $	19,380 $	759 $	33 $	10,515 $	42,294
ACL - loans to loan type ratio 0.68	% 0.98	% 1.07	% 26.19	% 4.78	% 1.07	%

The following table shows the allocation of the ACL - loans by loan type for the years ended December 31, 2025 and 2024.

December 31,
(dollars in thousands) Amount % of Total Loans Amount % of Total Loans
Balance of ACL - loans:
Commercial real estate $ % $	11,607 0.7	%
Commercial % 19,380 1.0	%
Residential real estate % 759 1.1	%
Consumer % 33 26.2	%
Solar % 10,515 4.8	%
Total ACL - loans $ % $	42,294 1.1	%

The total ACL - loans disclosed in the table above is available to absorb losses from any loan category. We believe that the ACL - loans as of December 31, 2025, is adequate to cover estimated losses in the loan portfolio as of such date. There can be no assurance, however, that our loan portfolio will not sustain losses in future periods, which could be substantial in relation to the size of the allowance as of December 31, 2025.

Non-performing Assets

Non-performing assets consist of non-performing loans, non-performing financing receivables, and other real estate owned.

Assets acquired through, or in lieu of, loan foreclosure are held for sale as other real estate owned and are initially recorded at fair value less estimated selling costs. Any write-down to fair value at the time of transfer to other real estate owned is charged to the ACL - loans. Subsequent to foreclosure, valuations are periodically

performed by management and the assets are carried at the lower of carrying amount or fair value, less estimated costs to sell. Costs of improvements are capitalized, whereas costs related to holding other real estate owned and subsequent write-downs to the value are expensed. Any gains and losses realized at the time of disposal are reflected in income.

Non-performing assets consisted of the following as of December 31, 2025 and 2024:

December 31,

(dollars in thousands) 2025 2024
Non-accrual loans:
Commercial real estate $ $	44,694
Commercial 12,789
Residential real estate 352
Consumer 8
Solar 762
Total non-accrual loans 58,605
Non-performing financing receivables —
Other real estate owned 25,476
Total non-performing assets $ $	84,081
Total non-accrual loans as a percentage of total loans % 1.48	%
Total non-performing financing receivables as a percentage of total financing receivables % —	%
Total non-performing assets as a percentage of total assets % 1.16	%

During 2025, the Bank sold       other real estate owned properties with a carrying value of $ million for proceeds of $      million resulting in a of $ thousand, which was recognized in other non-interest income. As of December 31, 2025, there remained       other real estate owned properties, with a value of $      million. During 2024, we foreclosed on and transferred five assets from loans held for investment at amortized cost to other real estate owned assets. All assets were transferred from our Commercial Real Estate portfolio. There were no sales of other real estate owned assets during 2024. There were five other real estate owned properties recognized on our Consolidated Balance Sheet as of December 31, 2024, for a total value of $25.5 million.

Non-performing Loans

A loan for which the accrual of interest has been discontinued is designated as a non-accrual loan. When loans are placed on non-accrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on non-accrual loans is subsequently recognized only to the extent that cash is received and the loan’s principal balance is deemed collectible. Loans are restored to accrual status when loans are once again current with regards to payment status, become well-secured, and management believes full collectability of future principal and interest is probable.

A loan is evaluated for individual impairment when we determine that it no longer exhibits similar risk characteristics inline with the rest of the related loan category. Individually evaluated loans include loans on non-accrual status and performing restructured loans. Depending on a particular loan’s circumstances, we measure impairment of a loan based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. A loan is considered collateral dependent when repayment of the loan is based solely on the liquidation of the collateral. Fair value, where possible, is determined by independent appraisals, typically on an annual basis. Between appraisal periods, the fair value may be adjusted based on specific events, such as if deterioration of quality of the collateral comes to our attention as part of our problem loan monitoring process, or if discussions with the borrower lead us to believe the last appraised value no longer reflects the actual market for the

collateral. The impairment amount on a collateral-dependent loan is charged-off to the allowance if deemed not collectible and the impairment amount on a loan that is not collateral-dependent is set up as a specific reserve.

The following tables present non-performing loans held for investment, by loan category, as of the dates indicated:

For the Year Ended December 31, 2025

(dollars in thousands) Commercial Real Estate Commercial Residential Real Estate Consumer Solar Total
Non-accruing $ $ $ $ $ $
Accruing loans 90 days or more past due
Total non-performing loans $ $ $ $ $ $
Total loans held for investment $ $ $ $ $ $
Non-accrual loans to total loans ratio % % % % % %
ACL - loans to non-accrual loans ratio % % % % % %
Non-performing loans to total loans ratio % % % % % %
For the Year Ended December 31, 2024

(dollars in thousands) Commercial Real Estate Commercial Residential Real Estate Consumer Solar Total
Non-accruing $	44,694 $	12,789 $	352 $	8 $	762 $	58,605
Accruing loans 90 days or more past due — — — — — —
Total non-performing loans $	44,694 $	12,789 $	352 $	8 $	762 $	58,605
Total loans held for investment $	1,694,575 $	1,978,130 $	71,037 $	126 $	220,105 $	3,963,973
Non-accrual loans to total loans ratio 2.64	% 0.65	% 0.50	% 6.35	% 0.35	% 1.48	%
ACL - loans to non-accrual loans ratio 25.97	% 151.54	% 215.63	% 412.50	% 1,379.92	% 72.17	%
Non-performing loans to total loans ratio 2.64	% 0.65	% 0.50	% 6.35	% 0.35	% 1.48	%

Total non-performing loans were $ million as of December 31, 2025, a       of      % compared to $58.6 million as of December 31, 2024. The       was primarily driven by      . Non-accruing loans by      % for December 31, 2025, compared to December 31, 2024, primarily due to      .

Modifications to Borrowers Experiencing Financial Difficulty

The following tables present by class and by type of modification, the recorded investment and financial effect of modification as of December 31, 2025 and 2024, in our loans that were both modified and experiencing financial

difficulty during the years ended December 31, 2025 and 2024:

December 31, 2025
(dollars in thousands) Term Extension Total Modification to Loan Class Ratio Weighted-Average Term Extension
Commercial Real Estate $ $ % months
Commercial % months
Residential Real Estate % months
Consumer % months
Solar % months
Total $ $