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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deposits serve as our growth engine, providing scalable access to a vast national market beyond the reach of a legacy branch network, which symmetrically align 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 and 2024:

December 31,
2025 2024 Change
(dollars in thousands) Balance % of total Balance % of total $ %
Non-interest-bearing deposits $ % $	258,242 4.6	% $ %
Interest-bearing deposits: %
Demand % 269,320 4.8	% %
Money market % 895,605 16.1	% %
Savings % 2,342,327 42.2	% %
Time deposits % 1,799,838 32.3	% %
Total interest-bearing deposits % 5,307,090 95.4	% %
Total deposits $ % $	5,565,332 100.0	% $ %

Total deposits as of December 31, 2025 were $ billion, a of $ billion or      % compared with $5.6 billion as of December 31, 2024 , primarily due to             . Non-interest-bearing deposits as of December 31, 2025 were

$ million, a of $ million or      % compared with $258.2 million as of December 31, 2024. Interest-bearing deposits of $ billion as of December 31, 2025 were $ billion or      % compared with $5.3 billion as of December 31, 2024.

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

December 31,

(dollars in thousands) Average Balance Interest Expense Average Rate Average Balance Interest Expense Average Rate
Non-interest-bearing deposits $ $ % $	271,796 $	— —	%
Interest-bearing deposits:
Demand % 525,478 19,628 3.74	%
Money market % 915,122 38,942 4.26	%
Savings % 875,777 42,857 4.89	%
Time deposits % 3,075,729 158,352 5.15	%
Total interest-bearing deposits % 5,392,106 259,779 4.82	%
Total deposits $ $ % $	5,663,902 $	259,779 4.59	%

The ratio of average non-interest-bearing deposits to average total deposits for the periods ended December 31, 2025 and December 31, 2024 was      %, and 4.8%, respectively.

As of December 31, 2025, the estimated aggregate amount of uninsured deposits (deposits in amounts greater than or equal to $250,000, which is the maximum amount for federal deposit insurance) was $ million.

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 $
Over three months through six months
Over six months through twelve months
Over twelve months
Total time deposits $

Borrowed Funds

Subordinated Debt

In 2016, we issued $17.0 million of Fixed Rate Subordinated Notes (“2016 Fixed Rate Notes”). The 2016 Fixed Rate Notes are unsecured, mature on December 30, 2026 and pay interest of 7.0% semi-annually, in arrears. We redeemed the 2016 Fixed Rate Notes at par in 2025, resulting in the recognition of a loss on repayment of debt in other non-interest income related to unamortized debt issuance costs.

In 2016, we issued $7.0 million of Fixed to Floating Rate Subordinated Notes (“2016 Fixed to Floating Notes”). The 2016 Fixed to Floating Notes are unsecured, mature on December 30, 2026, and paid an initial interest of 6.5% semi-annually, in arrears. Beginning on December 30, 2021, the 2016 Fixed to Floating Notes interest rate reset quarterly to an interest rate per annum equal to the three-month LIBOR plus 469.5 basis points, paid quarterly in arrears. If the three-month LIBOR was less than zero, the three-month LIBOR was deemed to be zero. Due to the cessation of LIBOR on June 30, 2023, the 2016 Fixed to Floating Notes interest rate resets quarterly to an interest rate per annum equal to the three-month Secured Overnight Financing Rate (“SOFR”) plus 495.7 basis points, paid

quarterly in arrears. If the three-month SOFR is less than zero, the three-month SOFR shall be deemed to be zero. The SOFR-based interest rate became effective on October 1, 2023. We redeemed the 2016 Fixed to Floating Notes at par in 2025, resulting in the recognition of a loss on repayment of debt in other non-interest income related to unamortized debt issuance costs.

In 2019, we issued $25.0 million of Fixed to Floating Rate Subordinated Notes (“2019 Notes”). The 2019 Notes are unsecured, mature on December 1, 2029, and paid an initial interest of 5.75% semi-annually, in arrears. Beginning on December 1, 2024, the 2019 Notes interest rate resets quarterly to an interest rate per annum equal to the three-month SOFR plus 439 basis points, paid quarterly in arrears. If the three-month SOFR is less than zero, the three-month SOFR shall be deemed to be zero. We may redeem the 2019 Notes at par.

In 2021, we issued $125.0 million of Fixed to Floating Rate Subordinated Notes (“2021 Notes”). The 2021 Notes are unsecured, mature on January 1, 2032 and pay an initial interest of 4.0% semi-annually through January 1, 2027, in arrears. Beginning on January 1, 2027, through the earlier of maturity date or the early redemption date, the interest rate will adjust quarterly equal to the three-month term SOFR plus 289 basis points, paid quarterly in arrears. The 2021 Notes are non-callable for the first five years; we have the option to redeem the 2021 Notes at par value, after five years from the date of issuance. The 2021 Notes are classified as Green Bonds in alignment with the International Capital Markets Association’s Green Bond Principles (2021).

We also have $2.8 million of other subordinated debt that has a 30-year term (matures on April 7, 2033), has no principal amortization and is guaranteed by us. As of December 31, 2024, the other subordinated debt paid interest at the rate of SOFR plus 3.3%, which resets on a quarterly basis.

Our subordinated debt requires us to comply with specific covenants related to capitalization adequacy, regulatory enforcement actions, nonperforming asset metrics, changes in key executive positions, and material changes in ownership. Additionally, in the event of default, our subordinated debt contains certain restrictions and limitations on dividend payments and our ability to repurchase our common stock. We were in compliance with all relevant covenants as of December 31, 2024.

The following table provides information on subordinated debt as of December 31, 2025 and 2024:

December 31,
(dollars in thousands) 2025 2024

2016 Fixed Rate Notes due in 2026, 7.00% $ $	17,000

2016 Fixed to Floating Notes, due in 2026 (1) 7,000

2019 Notes, due in 2029 (2) 25,000

2021 Notes, due in 2032, 4.00% 125,000

Other subordinated debt, due in 2033 (3) 3,000

Less: debt issuance costs and discounts (2,474)

Total subordinated debt $ $	174,526

(1)Borrowings bore interest at an effective rate of 9.56% as of December 31, 2024.

(2)Borrowings bore interest at an effective rate of      % and 8.89% as of December 31, 2025 and 2024, respectively.

(3)Borrowings bore interest at an effective rate of      % and 8.22% as of December 31, 2025 and 2024, respectively.

We use subordinated debt as a supplemental source of funding to support balance sheet growth, liquidity management, and funding diversification. We evaluate the use of wholesale funding sources based on cost, maturity structure, and overall liquidity needs. Increased reliance on borrowings may result in higher interest expense and could impact net interest margin, particularly in a rising interest rate environment. Management seeks to balance the use of wholesale funding with deposit growth and other liquidity sources to maintain an appropriate funding profile.

Other Borrowed Funds

On January 1, 2019, we entered into an Advances and Security Agreement with the FHLB of Atlanta (the “Advances and Security Agreement”) , of which we are a member. Under the Advances and Security Agreement,

borrowings from the FHLB must be secured with eligible collateral approved by the FHLB. As of December 31, 2025 and 2024, there was $ million and $920.4 million, respectively, of stated potential borrowing capacity available under the Advances and Security Agreement, of which approximately $ million and $700.0 million were outstanding as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, we had $ million and $960.0 million, respectively, of securities available for collateral under the Advances and Security Agreement. As of December 31, 2025 and 2024, we had an outstanding balance of $ million and $700.0 million, respectively, at a floating interest rate of      % and 4.44%, respectively, under the Advances and Security Agreement.