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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mortgage-backed 59,754 (237) 8,901 (285) 68,655 (522) Residential agency mortgage-backed 49,759 (170) 719 (92) 50,478 (262) Municipal bonds 1,978 (13) 5,541 (883) 7,519 (896) Other 93 — 12,666 (738) 12,759 (738) Total $ 111,584 $ (420) $ 27,827 $ (1,998) $ 139,411 $ (2,418) The Company individually evaluates its investment securities available-for-sale for credit losses. As of March 31, 2026 and December 31, 2025, the Company determined no portion of the unrealized losses on its investment securities available-for-sale was due to credit factors. Unrealized losses on investment securities available-for-sale due to factors other than credit are largely due to the nature of the investments. Therefore, no allowance for credit losses was recorded as of March 31, 2026 or December 31, 2025. Additionally, the Company has the intent and ability to hold its investment securities available-for-sale for a period of time sufficient to allow for any anticipated recovery. Investment Securities Held-to-Maturity

Investment securities held-to-maturity as of March 31, 2026 and December 31, 2025, consisted of the following securities:

March 31, 2026
(in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Municipal bonds $	31,200 $	2,817 $	— $	34,017

Other 17,744 435 (3,130) 15,049
Total investment securities held-to-maturity $	48,944 $	3,252 $	(3,130) $	49,066
Allowance for credit losses (110)
Total investment securities held-to-maturity, net of allowance for credit losses $	48,834
December 31, 2025
(in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Municipal bonds $	31,200 $	3,736 $	— $	34,936

Other 17,744 482 (2,687) 15,539
Total investment securities held-to-maturity $	48,944 $	4,218 $	(2,687) $	50,475
Allowance for credit losses (110)
Total investment securities held-to-maturity, net of allowance for credit losses $	48,834

The tables above exclude accrued interest receivables of $2.6 million and $1.7 million as of March 31, 2026 and December 31, 2025, respectively.

Expected maturities of investment securities held-to-maturity may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. The amortized cost and fair value of investment securities held-to-maturity as of March 31, 2026 and December 31, 2025, by contractual maturity, are presented in the following table:

March 31, 2026 December 31, 2025
(in thousands) Amortized Cost Fair Value Amortized Cost Fair Value
Municipal bonds:
One year or less $	— $	— $	— $	—
One to five years 31,200 34,017 31,200 34,936
Five to ten years — — — —
After ten years — — — —

Other:
One year or less — — — —
One to five years — — — —
Five to ten years — — — —
After ten years 17,744 15,049 17,744 15,539
Total $	48,944 $	49,066 $	48,944 $	50,475

As of March 31, 2026 and December 31, 2025, there were no investment securities held-to-maturity of any one issuer in an amount greater than 10% of stockholders’ equity.

There were no sales of investment securities held-to-maturity or transfers of investment securities available-for-sale to investment securities held-to-maturity during the three months ended March 31, 2026 or 2025.

Information pertaining to investment securities held-to-maturity with gross unrealized losses as of March 31, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are presented in the following tables:

March 31, 2026

12 Months or Less 12 Months or More Total
(in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses

Other $	109 $	(1) $	14,181 $	(3,129) $	14,290 $	(3,130)
Total $	109 $	(1) $	14,181 $	(3,129) $	14,290 $	(3,130)
December 31, 2025
12 Months or Less 12 Months or More Total
(in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses

Other $	— $	— $	14,032 $	(2,687) $	14,032 $	(2,687)
Total $	— $	— $	14,032 $	(2,687) $	14,032 $	(2,687)

The Company collectively evaluates its investment securities held-to-maturity for credit losses. As of March 31, 2026 and December 31, 2025, the Company recorded an allowance for credit losses on its investment securities held-to-maturity.

The following tables summarize the activity in the allowance for credit losses for investment securities held-to-maturity for the three months ended March 31, 2026 and 2025:

March 31, 2026

(in thousands) Municipal bonds Other Total
Balance at beginning of period $	66 $	44 $	110
Recovery of credit losses — — —
Balance at end of period $	66 $	44 $	110

March 31, 2025

(in thousands) Municipal bonds Other Total
Balance at beginning of period $	109 $	52 $	161
Recovery of credit losses — — —
Balance at end of period $	109 $	52 $	161

NOTE 4 – LOANS

The Company manages its exposure to credit losses by evaluating credit risk across its three loan categories: Commercial Real Estate; Commercial and Industrial; and Consumer. For descriptions of each loan category, refer to the annual Consolidated Financial Statements included in the Company’s Registration Statement on Form S-1.

Loans Held-for-Sale

As of March 31, 2026 and December 31, 2025, the Company had $407.6 million and $379.7 million of loans held-for-sale, respectively. The table below presents the proceeds received from the sales of loans held-for-sale, net realized gains and losses, and net unrealized gains and losses related to loans-held-for sale for the three months ended March 31, 2026 and 2025. Realized (losses)/gains, net are recognized in (Losses)/gains on sales of loans and

investment securities, net in the Consolidated Statements of Income. Unrealized (losses)/gains, net related to loans held-for-sale are included with Unrealized (losses)/gains on loans and financing receivables, net in the Consolidated Statements of Income.

(in thousands) March 31, 2026 March 31, 2025
Proceeds from sales $	42,846 $	58,773
Realized (losses)/gains, net $	(34) $	632
Unrealized (losses)/gains, net $	(1,240) $	1,095

The following tables present, by loan category, the carrying amount and unpaid contractual balance of the Company’s loans held-for-sale as of March 31, 2026 and December 31, 2025:

March 31, 2026

Loans Held-for-Sale at Fair Value Loans Held-for-Sale at Lower of Cost or Fair Value Total Loans Held-for-Sale
(in thousands) Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance
Commercial and Industrial $	57,817 $	61,266 $	349,777 $	354,209 $	407,594 $	415,475
Total loans held-for-sale $	57,817 $	61,266 $	349,777 $	354,209 $	407,594 $	415,475

December 31, 2025

Loans Held-for-Sale at Fair Value Loans Held-for-Sale at Lower of Cost or Fair Value Total Loans Held-for-Sale
(in thousands) Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance
Commercial and Industrial $	62,251 $	65,281 $	317,411 $	321,295 $	379,662 $	386,576
Total loans held-for-sale $	62,251 $	65,281 $	317,411 $	321,295 $	379,662 $	386,576

Loans Held for Investment at Amortized Cost

Loans held for investment at amortized cost, by loan category, as of March 31, 2026 and December 31, 2025, are presented in the following table:

(in thousands) March 31, 2026 December 31, 2025
Commercial Real Estate $	2,679,872 $	2,528,996
Commercial and Industrial 2,485,418 2,475,549
Consumer 211,247 217,689
Total loans held for investment at amortized cost $	5,376,537 $	5,222,234

Total outstanding loans held for investment at amortized cost are net of deferred fees and costs of $55.3 million and $54.7 million as of March 31, 2026 and December 31, 2025, respectively.

Total outstanding loans held for investment at amortized cost excludes accrued interest receivable of $32.0 million and $32.1 million as of March 31, 2026 and December 31, 2025, respectively.

Loans to Related Parties

From time to time, the Company has loan transactions with some of its officers, directors, and material investors, and their immediate family members and affiliated entities. There were no loans in the ordinary course of business due from related parties as of March 31, 2026 and December 31, 2025. See Note 18 – Related Party Transactions for more information.

NOTE 5 – CREDIT QUALITY ASSESSMENT

Allowance for Credit Losses - Loans Held for Investment at Amortized Cost

For a description of the Company's accounting policy for the allowance for credit losses, refer to the annual Consolidated Financial Statements included in the Company's Registration Statement on Form S-1.

The following table summarizes the activity in the allowance for credit losses for loans held for investment at amortized cost for the three months ended March 31, 2026 and 2025:

(in thousands) March 31, 2026 March 31, 2025
Beginning of period $	52,986 $	42,294
Provision for credit losses on loans 3,867 8,413
Provision for credit losses on loan transfers from loans held-for-sale 17 68
Loan charge-offs (4,887) (4,433)
Loan recoveries 811 526
Net charge-offs (4,076) (3,907)
End of period $	52,794 $	46,868