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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Ratio of net charge-offs to average financing receivables held for investment — % — % — % — % CPACE exposures are subject to an ACL - financing receivables, however, we have never experienced a credit loss on these assets. As such, a qualitative ACL - financing receivables 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. As of and for the Three Months Ended As of and for the Years Ended (in thousands) March 31, 2026 March 31, 2025 December 31, 2025 December 31, 2024 Held-for-sale: Average financing receivables held-for-sale outstanding $ — $ 13,746 $ 9,557 $ 13,275 Total financing receivables held-for-sale outstanding at end of period $ — $ 13,602 $ — $ 13,835

All of our financing receivables held-for-sale were transferred to financing receivables held for investment during the third quarter of 2025 due to a change in strategy related to our financing receivables portfolio. As of March 31, 2026 and December 31, 2025, all of our financing receivables had contractual maturity dates of greater than ten years with a weighted-average yield of 6.06% and 6.42%, respectively. As of March 31, 2026, December 31, 2025, and December 31, 2024, no financing receivables were on non-accrual status or deemed non-performing assets.

See Note 1, “Significant Accounting Policies,” to our consolidated financial statements and the notes thereto included elsewhere in this prospectus for further discussion of CPACE exposures.

Deposits

Our lending and investing activities are primarily funded by deposits. We offer a variety of deposit accounts having a wide range of interest rates and terms including demand, savings, money market and time accounts. We rely primarily on competitive pricing policies and customer service to attract and retain these deposits. We primarily source our deposits through our digital deposit platform underpinned by a modern core banking system that leverages advanced technology to provide a robust, scalable, and API-driven architecture that supports efficient operations and differentiated customer experience. We believe that digital deposits serve as our growth engine, providing scalable access to a vast national market beyond the reach of a legacy branch network and aligning 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 March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025 Change
(dollars in thousands) Balance % of total Balance % of total $ %
Non-interest-bearing deposits $	473,153 6.6	% $	372,444 5.5	% $	100,709 27.0	%
Interest-bearing deposits:
Demand 287,356 4.0	% 275,259 4.1	% 12,097 4.4	%
Money market 1,424,548 20.0	% 1,206,544 17.8	% 218,004 18.1	%
Savings 3,607,617 50.6	% 3,500,532 51.6	% 107,085 3.1	%
Time deposits 1,345,534 18.8	% 1,423,136 21.0	% (77,602) (5.5)	%
Total interest-bearing deposits 6,665,055 93.4	% 6,405,471 94.5	% 259,584 4.1	%
Total deposits $	7,138,208 100.0	% $	6,777,915 100.0	% $	360,293 5.3	%

Total deposits as of March 31, 2026 were $7.1 billion, an increase of $360.3 million, or 5.3%, compared with $6.8 billion as of December 31, 2025, primarily due to higher deposits in money market accounts, savings accounts, and non-interest-bearing deposit accounts, partially offset by a decrease in time deposits.

Brokered time deposits, included in time deposits in the table above, increased slightly to $686.7 million as of March 31, 2026 from $686.5 million as of December 31, 2025. Institutional sweep deposits, included in each of savings and money market in the table above, increased to $1.4 billion as of March 31, 2026, compared to $1.1 billion as of December 31, 2025 due primarily to the addition of new relationships and the expansion of one existing relationship. All brokered time deposits and institutional sweep deposits are fully FDIC insured.

Non-interest-bearing deposits as of March 31, 2026, were $473.2 million, an increase of $100.7 million, or 27.0%, compared with $372.4 million as of December 31, 2025. Interest-bearing deposits were $6.7 billion as of March 31, 2026, an increase of $259.6 million, or 4.1%, compared with $6.4 billion as of December 31, 2025.

As of March 31, 2026, the estimated aggregate amount of uninsured deposits (deposits in amounts greater than $250,000 per depositor, per account ownership category, which is the maximum amount for federal deposit insurance) was $975.2 million, which is 13.6% of total Bank deposits.

The following table summarizes our deposit balances as of December 31, 2025 and 2024:

December 31, 2025 December 31, 2024 Change
(dollars in thousands) Balance % of total Balance % of total $ %
Non-interest-bearing deposits $	372,444 5.5	% $	258,242 4.6	% $	114,202 44.2	%
Interest-bearing deposits:
Demand 275,259 4.1	% 269,320 4.8	% 5,939 2.2	%
Money market 1,206,544 17.8	% 895,605 16.1	% 310,939 34.7	%
Savings 3,500,532 51.6	% 2,342,327 42.2	% 1,158,205 49.4	%
Time deposits 1,423,136 21.0	% 1,799,838 32.3	% (376,702) (20.9)	%
Total interest-bearing deposits 6,405,471 94.5	% 5,307,090 95.4	% 1,098,381 20.7	%
Total deposits $	6,777,915 100.0	% $	5,565,332 100.0	% $	1,212,583 21.8	%

Total deposits as of December 31, 2025 were $6.8 billion, an increase of $1.2 billion, or 21.8%, compared with $5.6 billion as of December 31, 2024, primarily due to higher deposits in the digital banking growth savings product, as well as an increase in money market deposit account balances, brokered certificates of deposit, and business checking accounts.

Brokered time deposits, included in time deposits in the table above, increased to $686.5 million as of December 31, 2025 from $514.3 million as of December 31, 2024, due to new deposit issuance. Institutional sweep deposits, included in each of savings and money market in the table above, increased to $1.1 billion as of December 31, 2025, compared to $813.7 million as of December 31, 2024 due primarily to the addition of new relationships. All brokered time deposits and institutional sweep deposits are fully FDIC insured.

Non-interest-bearing deposits as of December 31, 2025, were $372.4 million, an increase of $114.2 million, or 44.2%, compared with $258.2 million as of December 31, 2024. Interest-bearing deposits were $6.4 billion as of December 31, 2025, an increase of $1.1 billion, or 20.7%, compared with $5.3 billion as of December 31, 2024.

As of December 31, 2025, the estimated aggregate amount of uninsured deposits (deposits in amounts greater than $250,000 per depositor, per account ownership category, which is the maximum amount for federal deposit insurance) was $887.9 million, which is 13.1% of total Bank deposits.

The following table sets forth the amount of time deposits that are $250,000 or greater, by time remaining until maturity:

(in thousands) March 31, 2026 December 31, 2025
Three months or less $	62,908 $	78,227
Over three months through six months 21,622 62,567
Over six months through twelve months 63,056 34,917
Over twelve months 3,309 4,533
Total time deposits $	150,895 $	180,244

The daily average balances and weighted average rates paid on deposits for each of the three months ended March 31, 2026 and 2025 are presented below:

March 31, 2026 March 31, 2025
(dollars in thousands) Average Balance Interest Expense Average Rate Average Balance Interest Expense Average Rate
Non-interest-bearing deposits $	372,965 $	— —	% $	239,776 $	— —	%
Interest-bearing deposits:
Demand 280,987 2,433 3.51	% 283,727 2,420 3.46	%
Money market 1,322,061 12,189 3.74	% 864,737 7,369 3.46	%
Savings 3,538,759 33,108 3.79	% 2,398,505 25,111 4.25	%
Time deposits 1,398,063 14,565 4.23	% 1,893,898 21,586 4.62	%
Total interest-bearing deposits 6,539,870 62,295 3.86	% 5,440,867 56,486 4.21	%
Total deposits $	6,912,835 $	62,295 3.65	% $	5,680,643 $	56,486 4.03	%

The ratio of average non-interest-bearing deposits to average total deposits for the three months ended March 31, 2026 and 2025 was 5.4%, and 4.2%, respectively.

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

December 31, 2025 December 31, 2024