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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Word Count: 1498
Character Count: 9552

Document Content:

- Other $ 5,465 $ — $ — $ — $ — $ — $ 68 $ 5,533 Loans held-for-sale at fair value 108,575 6,249 (3,035) (9,660) — 636 — 102,765 Loans held for investment at fair value 7,081 — — (325) — (71) — 6,685 Total Level 3 assets $ 121,121 $ 6,249 $ (3,035) $ (9,985) $ — $ 565 $ 68 $ 114,983 Liabilities Total Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — See Note 4 – Loans for more information regarding realized and unrealized gains and losses on loans. Unrealized losses on investment securities available-for-sale are included in Net change in unrealized gain on investments available-for-sale in the Consolidated Statements of Comprehensive Income. During the three months ended March 31, 2026 and 2025, the Company did not transfer any assets to or from Level 3.

The following tables present the quantitative inputs used in determining the fair value of the Company’s Level 3 assets measured on a recurring basis as of March 31, 2026 and December 31, 2025:

(dollars in thousands) Fair value as of March 31, 2026 Valuation Technique Unobservable Input Range (Weighted Average) 1

Investment securities available-for-sale - Other $	3,028 Discounted Cash Flow Discount Rate 7.9% - 7.9% (7.9%)

Loans held-for-sale at fair value $	51,202 Market Observations Market (Premium)/Discount (0.1)% - 7.5% (2.6%)

Loans held-for-sale at fair value 6,615 Discounted Cash Flow Discount for Risk of Non-Payment 12.6% - 54.8% (28.7%)

Discount Rate 8.8% - 11.8% (9.4%)
Total loans held-for-sale at fair value $	57,817

Loans held for investment at fair value $	3,789 Market Observations Market (Premium)/Discount (0.1)% - 8.5% (2.0%)

Loans held for investment at fair value 766 Discounted Cash Flow Discount for Risk of Non-Payment 12.6% - 54.8% (30.7%)

Discount Rate 8.8% - 11.8% (9.8%)
Total loans held for investment at fair value $	4,555

(1)Weighted averages are calculated by using the product of the inputs multiplied by the relative fair values of the instruments.

(dollars in thousands) Fair value as of December 31, 2025 Valuation Technique Unobservable Input Range (Weighted Average) 1

Investment securities available-for-sale - Other $	5,475 Discounted Cash Flow Discount Rate 7.5% - 7.6% (7.5%)

Loans held-for-sale at fair value $	58,059 Market Observations Market (Premium)/Discount (1.4)% - 7.6% (2.3%)

Loans held-for-sale at fair value 4,192 Discounted Cash Flow Discount for Risk of Non-Payment 10.0% - 40.0% (30.6%)

Discount Rate 9.3% - 11.8% (10.0%)
Total loans held-for-sale at fair value $	62,251

Loans held for investment at fair value $	3,853 Market Observations Market (Premium)/Discount (1.4)% - 7.6% (0.8%)

Loans held for investment at fair value 792 Discounted Cash Flow Discount for Risk of Non-Payment 10.0% - 40.0% (28.2%)

Discount Rate 9.3% - 11.8% (10.4%)
Total loans held for investment at fair value $	4,645

(1)Weighted averages are calculated by using the product of the inputs multiplied by the relative fair values of the instruments.

Certain assets are measured at fair value on a nonrecurring basis; that is, not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets measured at fair value on a non-recurring basis as of March 31, 2026 and December 31, 2025, are presented in the following tables:

March 31, 2026

(in thousands) Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total
Collateral-dependent loans $	— $	— $	55,125 $	55,125
Impaired loans — — 11,732 11,732
Other real estate owned — — 7,109 7,109
Total $	— $	— $	73,966 $	73,966

December 31, 2025

(in thousands) Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total
Collateral-dependent loans $	— $	— $	49,682 $	49,682
Impaired loans — — 14,017 14,017
Other real estate owned — — 8,729 8,729
Total $	— $	— $	72,428 $	72,428

As of March 31, 2026 and December 31, 2025, the Company’s investment in collateral-dependent loans included individual credit loss allowances of $994 thousand and zero, respectively. As of March 31, 2026 and December 31, 2025, the Company’s investment in impaired loans included individual credit loss allowances of $1.4 million and $2.2 million, respectively. As of March 31, 2026 and December 31, 2025, the Company’s

investment in other real estate owned assets included cumulative unrealized fair value adjustment losses of $2.1 million and $1.8 million, respectively, which are recognized in Other non-interest income in the Consolidated Statements of Income.

Collateral-dependent loans are reported at fair value using the fair value of collateral less estimated selling costs. Although appraisals are obtained on collateral-dependent loans, the appraised values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation and/or management’s expertise and knowledge of the borrower’s business, and therefore they are classified as Level 3.

Impaired loans are reported at fair value using the present value of expected cash flows. For impairments based on cash flow methodology, the discount rate is based on observable inputs, however the determination of cash flows requires management’s judgment, and therefore they are classified as Level 3.

Other real estate owned assets have been valued using a market approach. The values were determined using market prices or similar real estate assets based on an independent appraisal, and adjusted for estimated selling costs. These estimates require management’s judgment, and therefore they are classified as Level 3.

The Company discloses the fair value of financial instruments not measured at fair value on a recurring basis based on the exit price notion. Where quoted market prices are unavailable, fair values are estimated using discounted cash flow models based on observable inputs (Level 2) or unobservable inputs (Level 3). For further information on the Company's fair value methodology, refer to the annual Consolidated Financial Statements included in the Company's Registration Statement on Form S-1.

The estimated fair values of the Company’s financial instruments were as follows as of March 31, 2026 and December 31, 2025:

March 31, 2026

(in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
Financial assets:
Cash, cash equivalents and restricted cash $	866,136 $	866,136 $	866,136 $	— $	—
Investment securities available-for-sale, at fair value 1,235,599 1,235,599 776,453 456,118 3,028
Investment securities held-to-maturity, at amortized cost 48,834 49,066 — 34,017 15,049
Loans held-for-sale, at fair value 57,817 57,817 — — 57,817
Loans held-for-sale, at lower of cost or fair value 349,777 349,809 — — 349,809
Loans held for investment, at fair value 4,555 4,555 — — 4,555
Loans held for investment, at amortized cost 5,323,743 5,381,142 — — 5,381,142
Other earning assets 50,690 47,165 — — 47,165
Accrued interest receivable 45,369 45,369 45,369 — —
Financial liabilities:
Time deposits $	1,345,534 $	1,355,067 $	— $	1,355,067 $	—
Other deposits 5,792,674 5,792,674 5,792,674 — —
Subordinated debt, net 151,092 148,520 — 148,520 —

December 31, 2025

(in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
Financial assets:
Cash, cash equivalents and restricted cash $	648,715 $	648,715 $	648,715 $	— $	—
Investment securities available-for-sale, at fair value 1,254,887 1,254,887 958,347 291,065 5,475
Investment securities held-to-maturity, at amortized cost 48,834 50,475 — 34,936 15,539
Loans held-for-sale, at fair value 62,251 62,251 — — 62,251
Loans held-for-sale, at lower of cost or fair value 317,411 317,411 — — 317,411
Loans held for investment, at fair value 4,645 4,645 — — 4,645
Loans held for investment, at amortized cost 5,169,248 5,213,899 — — 5,213,899
Other earning assets 55,928 54,023 — — 54,023
Accrued interest receivable 55,155 55,155 55,155 — —
Financial liabilities:
Time deposits $	1,423,136 $	1,431,710 $	— $	1,431,710 $	—
Other deposits 5,354,779 5,354,779 5,354,779 — —
Subordinated debt, net 151,003 146,547 — 146,547 —

Shares

Class A Common Stock

PRELIMINARY PROSPECTUS

Goldman Sachs & Co. LLC	J.P. Morgan Barclays

Wells Fargo Securities	Piper Sandler	TD Securities	Santander	Centerview Partners

PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

Item 13. Other Expenses of Issuance and Distribution.

The following table sets forth all costs and expenses, other than the underwriting discounts and commissions payable by us, in connection with the offer and sale of the securities being registered. All amounts shown are estimates except for the SEC registration fee and the Financial Industry Regulatory Authority, Inc. (FINRA) filing fee.

Amount To Be Paid

Registration fee	$                   *

FINRA filing fee	*

Listing fees	*

Printing and engraving expenses	*

Legal fees and expenses	*

Accounting fees and expenses	*

Transfer agent and registrar fees and expense	*

Miscellaneous	*

Total	$                   *

*To be provided by amendment.