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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both entry and exit. We currently operate the following go-to-market lending strategies: Healthcare Our healthcare strategy provides working‑capital and real‑estate loans to healthcare service providers. We generate both lending returns through net interest income and significant fee revenue, including via FHA/HUD activities. The growth trajectory and stability of U.S. healthcare services, combined with providers’ perpetual capital needs, create a durable, through‑the-cycle lending opportunity. Healthcare made up % of loan production as of December 31, 2025. Lender Finance Our Lender Finance strategy serves financial services companies, providing bespoke senior‑secured, asset‑based loans to non‑bank lenders with recurring borrowing needs. Our ability to underwrite across diverse collateral classes and structure complex structurally senior credit facilities differentiates the platform in an environment where many banks have narrowed focus and the importance of domain experience and risk management has increased. Lender Finance made up % of loan production as of December 31, 2025. Fund Finance

Our Fund Finance strategy provides customized lending products to middle-market credit funds, offering the sophistication required to serve the rapidly expanding private capital universe. The market is highly fragmented and requires deep expertise, presenting a strong opportunity for our well-positioned platform and capabilities. This strategy works in concert with private credit providers rather than positioning us as competitors. In some instances,

their products substitute for ours; in others, we collaborate to deliver comprehensive solutions that serve our customers’ evolving needs. Fund Finance made up      % of loan production as of December 31, 2025.

Commercial Real Estate (CRE)

Our national CRE lending strategy focuses on bank‑eligible first‑lien CRE loans for acquisitions, recapitalizations, restructurings, and construction. Market dislocations and widespread de‑risking among credit providers have created uniquely attractive opportunities for disciplined lenders with controlled CRE exposure. CRE Lending made up               % of loan production as of December 31, 2025.

Corporate Finance

Our Corporate Finance strategy provides customized senior-secured, first‑lien credit solutions to strong, cash‑flowing middle-market companies, often in partnership with private equity sponsors. We benefit from our ability to distribute loans via the BancAlliance network, enhancing capital efficiency while maintaining and enhancing borrower relevance. Corporate Finance made up             % of loan production as of December 31, 2025.

As of December 31, 2025, no go-to-market lending strategy represents more than      % of the total loan portfolio.

Scalable Digital Deposit Platform

We have carefully evolved our funding model. Historically reliant on traditional community bank deposits, we expanded into institutional sweep deposits early in our growth phase for scalable liquidity to fund our lending activities. The liquidity stresses seen across the industry in early 2023 prompted a reassessment, leading to a deliberate reduction in wholesale sweep reliance and temporary use of higher‑cost time deposits to preserve liquidity.

In May 2024, we launched our digital deposit platform, introducing a competitive high‑yield savings deposit product. The launch of our digital deposit platform has significantly reduced our reliance on other forms of wholesale funding as they have been replaced by stable and granular digital consumer deposits. More recently, we have also introduced a digital time deposit product, and have ambitions to continue to expand the product suite over time. We supplement our digital deposit platform with deposits from our legacy community bank markets in Maryland, Virginia and the District of Columbia, as well as deposits from our commercial lending customers and wholesale funds, though our shift to digital deposits has decreased our reliance on such deposits - our wholesale funding ratio has decreased from 71% in December 31, 2022 to      % as of December 31, 2025.

Our shift to digital deposits has also decreased our reliance on wholesale funds - our wholesale funding ratio has decreased from 71% as of December 31, 2022 to      % as of December 31, 2025.

The following charts shows the growth in our deposits from December 31, 2020 to December 31, 2025 and highlights our deliberate shift in funding model:

Our cloud-native, API-driven, and data-powered technology infrastructure is the foundation of our digital deposit platform and is built for where we believe the industry is heading. Our digital deposit platform has led to superior results in key benchmarks, including customer acquisition and onboarding performance, fraud detection, and customer experience. Using a combination of advanced real-time attribution with visibility into performance, simplified customer onboarding, trigger-based customer engagement, automated decisioning, and strong user experience capabilities we have achieved the following results:

•Convert more customers: We have automated decision-making rates consistently above 80%. Further, approximately 55% of our digital applications reached approval during the quarterly period ended September 30, 2024, according to a study commissioned by us, which is 19 percentage points higher than our competitor brands with approval rates of 41% over the same time-period. Additionally, 76% of our approved accounts fund within the first seven days of account opening, as compared to only 44% for our competitor brands. The combination of automated decisioning and higher pull-through rates leads to lower customer acquisition costs, which were         bps of new deposits for fiscal year 2025 as compared to            bps for our competitor brands in the same time period.

•Strong Fraud Prevention Capabilities: Our purpose-built fraud loss prevention solutions and operations have resulted in immaterial booked fraud losses, totaling less than $100,000 (or 0.1 bps) since launch of the program in 2024, well below industry targets of 2-3 bps on average deposits for similar deposit products.

•Deeper customer engagement and retention: As of December 31, 2025, we had an NPS of 63 (+22 above competitive benchmark), and as of           2026, we had an Apple App store rating of            stars. Additionally, within eight months following the launch of our digital deposit platform in May 2024, we achieved a 112% balance growth of customers, which was approximately three times that of the industry average of approximately 36% during such period.

By focusing development on integration and data layers, we have significant visibility and control over our ecosystem with the flexibility to bring best-in-class partners to enhance our digital deposit platform. This allows us to manage fixed costs while retaining a high degree of control over the platform.

High‑Margin, Capital-Light Fee Businesses

Our fee‑based businesses are intentionally constructed to complement and enhance our core lending capabilities. These capital‑light businesses generate recurring revenue by monetizing our specialized underwriting, structuring, distribution and servicing expertise across the credit lifecycle. They leverage the same foundational assets as our lending strategies—sector expertise, centralized credit discipline, and scalable technology infrastructure.

Our fee-based businesses strategically cultivate proprietary partner networks, including BancAlliance, a broad network of U.S. based community banking partners that is managed by our Bank’s wholly-owned subsidiary Alliance Partners. This network provides us with a unique distribution channel and revenue diversification, enhancing our return on equity. We invest in the network by providing differentiated value-added services such as educational and training programs as well as peer-to-peer networking opportunities, resulting in deep, sticky relationships. Alliance Partners helps the community banks in BancAlliance meet their asset and return objectives by utilizing our full-service lending platform with a disciplined approach to originating, screening, underwriting, managing and servicing loans.

The following chart shows our non-interest income breakdown for the year ended December 31, 2025:

Alliance Partners – Distributed Credit Origination & Asset Management

Through Alliance Partners, we source, distribute, and advise on middle‑market loans on behalf of BancAlliance, which, on a combined basis, represents approximately $2 trillion in aggregate total assets as of December 31, 2025. We generate gain-on-sale and advisory fees by providing access to high‑quality credit opportunities that these institutions could not otherwise originate. The partnership enables us to use distributed balance‑sheet capacity to support larger commitments, creating a scaled, mutually beneficial credit ecosystem.

FHA/HUD Lending

We originate loans eligible for refinancing into government‑guaranteed HUD products, retaining servicing responsibilities post‑takeout and reducing long-term balance sheet exposure while generating fees throughout the credit lifecycle. This reduces long‑term balance‑sheet exposure while generating fees throughout the credit lifecycle. The FHA/HUD franchise focuses on healthcare and multifamily real estate and benefits from deep specialization and decades of industry experience.

Solar Services

The Solar Services business provides sourcing, servicing and asset‑administration capabilities for residential solar loan portfolios owned by financial institutions and banks. We earn recurring fees through payment management, compliance, borrower engagement, and asset‑performance monitoring without assuming fixed‑rate credit exposure.

Other Fee Income

We also earn additional non-interest income from traditional banking services, such as loan fees, deposit fees, and other recurring revenue streams embedded in our lending and servicing infrastructure.

Financial Metrics & Performance