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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share. As of March 31, 2026 and 2025, 486,350 shares and 386,522 shares, respectively, of unvested restricted stock awards with voting rights are included in outstanding shares of common stock on the Consolidated Statements of Changes in Stockholders’ Equity, but are excluded from the calculation of basic earnings per share. NOTE 18 – RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company may make loans to and receive deposits from related parties, which primarily includes principal officers and directors, and their affiliates. The Company had no loans outstanding to related parties as of March 31, 2026 and December 31, 2025. The aggregate amounts of deposits from related parties as of March 31, 2026 and December 31, 2025, was $6.7 million and $5.2 million, respectively. For more information on the activity of loans and deposits with related parties see Note 4 – Loans and Note 9 – Deposits, respectively.

The Company has a related party relationship with BancAlliance because certain employees of the Company also hold officer roles with BancAlliance, and a subsidiary of the Company serves as the asset manager of BancAlliance members. The Company sources loans for its own balance sheet and makes those loans available for sale through the BancAlliance program. Loans sold to BancAlliance are immediately sold to members in the program with terms of loan sales, including pricing, dictated by a Master Participation Agreement for the program that applies the same to all members of BancAlliance. BancAlliance is a pass-through participant and does not incur an economic or accounting impact from the program.

Transactions with BancAlliance for the three months ended March 31, 2026 and 2025, and amounts due from BancAlliance as of March 31, 2026 and December 31, 2025, are presented in the following table:

For the Three Months Ended
(in thousands) March 31, 2026 March 31, 2025
Loans sold to BancAlliance $	36,276 $	53,273
Net gains realized on loans sold to BancAlliance $	226 $	393
March 31, 2026 December 31, 2025
Amounts due from BancAlliance related to funding and expense advancements $	1,478 $	6,035

In the ordinary course of business, the Company incurs expenses from transactions with vendors who are considered related parties. These transactions resulted in a non-material amount of expense for the three months ended March 31, 2026 and 2025.

NOTE 19 – REGULATORY MATTERS

The Company and the Bank are subject to regulatory capital requirements administered by federal and state banking agencies. As of March 31, 2026 and December 31, 2025, each of the Company and the Bank qualified as a community banking organization under the community bank leverage ratio ("CBLR") framework and elected to measure capital adequacy under that framework. For a description of the CBLR framework and applicable capital requirements, refer to the annual Consolidated Financial Statements included in the Company's Registration Statement on Form S-1.

The following table presents as of March 31, 2026 and December 31, 2025, the Company’s and the Bank’s actual and required capital amounts and leverage ratios. The table also includes the actual amounts and risk-weighted ratios, which the Company has opted to disclose as of March 31, 2026 and December 31, 2025, although they are not required under the CBLR framework:

Actual To Be Well Capitalized Under Prompt Corrective Action Provisions (CBLR Framework)
(dollars in thousands) Amount Ratio Amount Ratio

As of March 31, 2026:
Required under CBLR framework:
Tier 1 leverage ratio:
Company $	702,893 8.92	% $	709,386 9.00	%
Bank $	805,006 10.19	% $	711,015 9.00	%
Optional under CBLR framework:
Total capital to risk-weighted assets ratio:
Company $	899,369 14.68	% N/A N/A
Bank $	860,274 14.01	% N/A N/A
Tier 1 capital to risk-weighted assets ratio:
Company $	702,893 11.47	% N/A N/A
Bank $	805,006 13.11	% N/A N/A
Common Equity Tier 1 to risk weighted-assets ratio:
Company $	702,893 11.47	% N/A N/A
Bank $	805,006 13.11	% N/A N/A

As of December 31, 2025:
Required under CBLR framework:
Tier 1 leverage ratio:
Company $	748,650 9.79	% $	688,367 9.00	%
Bank $	848,960 11.11	% $	687,907 9.00	%
Optional under CBLR framework:
Total capital to risk-weighted assets ratio:
Company $	934,965 15.89	% N/A N/A
Bank $	894,305 15.14	% N/A N/A
Tier 1 capital to risk-weighted assets ratio:
Company $	748,650 12.72	% N/A N/A
Bank $	848,960 14.37	% N/A N/A
Common Equity Tier 1 to risk weighted-assets ratio:
Company $	748,650 12.72	% N/A N/A
Bank $	848,960 14.37	% N/A N/A

NOTE 20 – FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company measures certain assets and liabilities at fair value using a three-level hierarchy that prioritizes observable inputs. Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than Level 1 prices, such as quoted prices for similar assets, interest rates, prepayment speeds, and credit risk factors. Level 3 inputs are unobservable inputs based on the Company's own assumptions about market participant pricing. For a complete description of the Company's fair value hierarchy and valuation methodologies, refer to the annual Consolidated Financial Statements included in the Company's Registration Statement on Form S-1. There have since been no significant changes to the methodologies.

The following tables summarize financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

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
Assets
Investment securities available-for-sale:
U.S. Treasury and government agencies $	776,453 $	— $	— $	776,453
Commercial agency mortgage-backed — 176,221 — 176,221
Residential agency mortgage-backed — 264,101 — 264,101
Municipal bonds — 8,498 — 8,498
Other — 7,298 3,028 10,326
Total investment securities available-for-sale 776,453 456,118 3,028 1,235,599
Loans held-for-sale at fair value — — 57,817 57,817
Loans held for investment at fair value — — 4,555 4,555
Total assets $	776,453 $	456,118 $	65,400 $	1,297,971
Liabilities
Total liabilities $	— $	— $	— $	—

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
Assets
Investment securities available-for-sale:
U.S. Treasury and government agencies $	958,347 $	— $	— $	958,347
Commercial agency mortgage-backed — 136,070 — 136,070
Residential agency mortgage-backed — 139,077 — 139,077
Municipal bonds — 8,635 — 8,635
Other — 7,283 5,475 12,758
Total investment securities available-for-sale 958,347 291,065 5,475 1,254,887
Loans held-for-sale at fair value — — 62,251 62,251
Loans held for investment at fair value — — 4,645 4,645
Total assets $	958,347 $	291,065 $	72,371 $	1,321,783
Liabilities
Total liabilities $	— $	— $	— $	—

The following tables present a reconciliation of the assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2026 and 2025:

March 31, 2026

Additions Sales Pay-downs/ Maturities/ Calls Transfers Realized and Unrealized Gain/(Loss) included in:

(in thousands) Balance as of December 31, 2025 Earnings Other Comprehensive Loss Balance as of March 31, 2026
Assets

Investment securities available-for-sale - Other $	5,475 $	— $	— $	(2,473) $	— $	— $	26 $	3,028
Loans held-for-sale at fair value 62,251 2,414 (118) (6,160) (151) (419) — 57,817
Loans held for investment at fair value 4,645 504 — (704) 151 (41) — 4,555
Total Level 3 assets $	72,371 $	2,918 $	(118) $	(9,337) $	— $	(460) $	26 $	65,400
Liabilities
Total Level 3 liabilities $	— $	— $	— $	— $	— $	— $	— $	—

March 31, 2025

Additions Sales Pay-downs/ Maturities/ Calls Transfers Realized and Unrealized Gain/(Loss) included in:

(in thousands) Balance as of December 31, 2024 Earnings Other Comprehensive Income Balance as of March 31, 2025
Assets

Investment securities available-for-sale - 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.