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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potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may, at some future date, result in deterioration of the repayment prospects for the asset. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. While potentially weak, the asset is currently marginally acceptable, and no loss of principal or interest is envisioned. •Substandard - A substandard asset is inadequately protected by the current sound worth and paying capacity of the borrower or the collateral pledged, if any. Assets classified in this category must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Loss potential, which exists in the aggregate amount of Substandard assets, does not have to exist in individual assets classified substandard.

•Doubtful - Assets in this category have all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined.

We periodically review and, if necessary, update the credit quality indicator assigned to each of the loans on a case-by-case basis.

The following tables summarize our held for investment at amortized cost loan portfolio by credit quality indicator as of December 31, 2025 and 2024:

December 31, 2025
(in thousands) Acceptable Risk Higher Risk Special Mention Substandard Doubtful Total

Commercial Real Estate $	2,075,215 $	386,499 $	— $	67,282 $	— $	2,528,996
Commercial and Industrial 2,399,907 55,114 1 17,987 2,540 2,475,549
Consumer 210,504 5,328 — 1,857 — 217,689

Total loans held for investment at amortized cost $	4,685,626 $	446,941 $	1 $	87,126 $	2,540 $	5,222,234

December 31, 2024
(in thousands) Acceptable Risk Higher Risk Special Mention Substandard Doubtful Total

Commercial Real Estate $	1,162,350 $	413,517 $	103,162 $	51,854 $	— $	1,730,883
Commercial and Industrial 1,809,606 109,226 2,326 63,147 2,152 1,986,457
Consumer 239,980 5,531 — 1,122 — 246,633

Total loans held for investment at amortized cost $	3,211,936 $	528,274 $	105,488 $	116,123 $	2,152 $	3,963,973

The change in allocation between credit quality indicators in our held for investment at amortized cost loan portfolio as of December 31, 2025, compared to December 31, 2024, was broadly due to loan payoffs in the higher risk, special mention, and substandard categories during the year, and to a lesser extent upgrades in credit quality indicator, offset partially by downgrades.

A loan is considered delinquent when principal or interest payments are 30 days or more past due. Delinquent loans may remain on accrual status between 30 days and 90 days past due. Typically, the accrual of interest on loans is discontinued when principal or interest payments are past due 90 days or when, in the opinion of management, there is a reasonable doubt as to collectability in the normal course of business. See Note 5, “Credit Quality,” to our consolidated financial statements and the notes thereto included elsewhere in this prospectus for more information on our past due loan aging schedule.

Investment Securities

We use our investment securities portfolio to manage interest rate risk and as a source of income and liquidity for cash requirements. As of December 31, 2025, the carrying amount of investment securities totaled $1.3 billion, a decrease of $220.3 million, or 14.5%, compared with $1.5 billion as of December 31, 2024. As of December 31, 2025, investment securities represented 16.5% of total assets compared to 21.0% of total assets as of December 31, 2024.

At the date of purchase, we are required to classify investment securities into one of two categories: held-to-maturity or available-for-sale. We primarily acquire investment securities as available-for-sale, however, we may elect certain investment securities that are acquired as held-to-maturity based on our strategy given the particular investment security acquired and current market conditions and expectation.

The following table summarizes the carrying value by classification of securities as of the dates shown:

As of December 31,
2025 2024 Change

(dollars in thousands) Amount (1) % of total securities Amount (1) % of total securities $ %
Available-for-sale securities:
U.S. Treasury and government agencies $	958,347 73.4	% $	1,390,681 91.2	% $	(432,334) (31.1)	%

Residential agency mortgage-backed 139,077 10.7	% 16,171 1.1	% 122,906 760.0	%

Commercial agency mortgage-backed 136,070 10.4	% 36,577 2.4	% 99,493 272.0	%
Municipal bonds 8,635 0.7	% 8,292 0.5	% 343 4.1	%

Other 12,758 1.0	% 19,747 1.3	% (6,989) (35.4)	%
Total investment securities available-for-sale $	1,254,887 96.2	% $	1,471,468 96.5	% $	(216,581) (14.7)	%
Held-to-maturity securities:
Municipal bonds $	31,200 2.4	% $	31,690 2.1	% $	(490) (1.5)	%

Other 17,744 1.4	% 20,996 1.4	% (3,252) (15.5)	%
Total investment securities held-to-maturity $	48,944 3.8	% $	52,686 3.5	% $	(3,742) (7.1)	%
Total investment securities $	1,303,831 100.0	% $	1,524,154 100.0	% $	(220,323) (14.5)	%

(1)Available for sale investment securities are reported at fair value and held to maturity securities are reported at amortized cost.

Total available-for-sale investment securities decreased $216.6 million, or 14.7%, from $1.5 billion as of December 31, 2024 to $1.3 billion as of December 31, 2025, primarily due to a decline of $432 million of U.S. Treasury and government agencies securities, partially offset by an increase in residential and commercial agency mortgage-backed securities of $222 million.

Held-to-maturity investment securities decreased $3.7 million, or 7.1%, from $52.7 million as of December 31, 2024 to $48.9 million as of December 31, 2025, due to expected paydowns.

The following table summarizes the amortized cost and their weighted average yields as of December 31, 2025, by contractual maturities. The contractual maturity of a mortgage-backed security is the date at which the last underlying mortgage matures.

December 31, 2025
Available-for-sale Held-to-maturity

(dollars in thousands) Amortized Cost Yield Amortized Cost Yield

U.S. Treasury and government agencies:
One year or less $	520,293 4.16	% $	— —	%
One to five years 433,688 4.02	% — —	%
Five to ten years — —	% — —	%
After ten years — —	% — —	%

Residential agency mortgage-backed:
One year or less $	— —	% $	— —	%
One to five years 109 1.61	% — —	%
Five to ten years — —	% — —	%
After ten years 138,153 4.75	% — —	%

Commercial agency mortgage-backed:
One year or less $	— —	% $	— —	%
One to five years 18,794 4.77	% — —	%
Five to ten years 13,396 4.73	% — —	%
After ten years 103,398 5.18	% — —	%
Municipal bonds:
One year or less $	— —	% $	— —	%
One to five years 2,081 4.07	% 31,200 9.00	%
Five to ten years 994 1.50	% — —	%
After ten years 6,410 2.92	% — —	%

Other:
One year or less $	— —	% $	— —	%
One to five years — —	% — —	%
Five to ten years 5,000 3.87	% — —	%
After ten years 8,496 6.40	% 17,744 5.62	%
Total investment securities $	1,250,812 4.28	% $	48,944 7.77	%

ACL - Investment Securities

For investment securities other than CPACE exposures, which are included in Other in the table above, the ACL - investment securities are subject to uncertainty primarily due to the assumed relationship between historical loss observations and future loss expectations. Historical obligor and credit rating loss history may be more different in the 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,