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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$ (443) $ 721,954 Net income — — — 11,127 — 11,127 Other comprehensive income, net of tax — — — — 1,319 1,319 Total other comprehensive income 12,446 Exercise of stock options 40,000 — 372 — — 372 Stock-based compensation — — 2,081 — — 2,081 Shares withheld for tax withholding and exercise of stock options and vesting of restricted shares (27,836) — (494) — — (494) Balance as of March 31, 2025 40,256,080 $ 40 $ 483,414 $ 252,029 $ 876 $ 736,359 FORBRIGHT, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) For the Three Months Ended March 31, (in thousands) 2026 2025 OPERATING ACTIVITIES Net income $ 11,632 $ 11,127 Adjustments to reconcile net income to net cash provided by/(used in) operating activities: Depreciation and intangible asset amortization 2,162 2,089 Provision for credit losses 3,473 8,459 Accretion of net discounts on investment securities, net (1,273) (7,688)

Amortization of deferred fees and costs on loans, net (6,034) (2,542)
Increase in loans originated for sale, net (29,021) (1,012)
Losses/(gains) on sales of loans and investment securities, net 34 (1,826)
Stock-based compensation 2,824 2,081
Deferred income taxes 2,236 —
Other 6,524 (186)
Net change in assets and liabilities:
Accrued interest receivable 9,786 (4,421)
Other assets 22,685 (13,688)
Other liabilities (24,896) (15,090)
Net cash provided by/(used in) operating activities 132 (22,697)
INVESTING ACTIVITIES
Net increase in loans held for investment, at amortized cost (153,527) (176,062)
Net decrease in loans held for investment, at fair value 201 326
Purchase of investment securities available-for-sale (176,126) (1,029,857)
Proceeds, maturities, prepayments and calls of securities available-for-sale 189,399 1,202,220

Proceeds from sales of other real estate owned 810 —
(Purchase of)/proceeds from Federal Home Loan Bank of Atlanta stock, net (473) 6,827
Other (2,988) (1,742)
Net cash (used in)/provided by investing activities (142,704) 1,712
FINANCING ACTIVITIES
Net increase in deposits 360,293 192,649
Proceeds from other borrowings — 550,000
Repayments of other borrowings — (700,000)
Proceeds from exercise of stock options under employee stock plans — 372
Shares withheld for tax withholding and exercise of stock options and restricted shares (300) (494)
Net cash provided by financing activities 359,993 42,527
Net increase in cash, cash equivalents and restricted cash 217,421 21,542
Beginning cash, cash equivalents and restricted cash 648,715 1,179,982
Ending cash, cash equivalents and restricted cash $	866,136 $	1,201,524

FORBRIGHT, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows - (continued)

(Unaudited)

For the Three Months Ended March 31,
(in thousands) 2026 2025
Supplemental cash flow disclosures:
Interest payments $	60,627 $	57,936

Income tax payments, net of refunds of $55 and $377, respectively $	47 $	117
Noncash investing activity:
Loans held-for-sale transferred to loans held for investment (at fair value) $	151 $	—
Loans held for investment (at amortized cost) transferred to loans held-for-sale, net $	48 $	—

FORBRIGHT, INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Forbright, Inc. (the “Parent”), a Delaware corporation, is a bank holding company that along with its subsidiaries (collectively the “Company”), is headquartered in Chevy Chase, Maryland. Forbright Bank (with its subsidiaries, the “Bank”), a wholly owned subsidiary of the Company, is a Maryland state chartered non-member bank, which serves the needs of individuals, small and medium sized businesses, and professional concerns. Nationwide, the Bank serves deposit and retail banking customers via its digital deposit platform and offers competitive financing and lending services, originating lender finance loans, fund finance loans, healthcare finance loans, real estate loans, working capital facilities, warehouse lines of credit, and term loans.

Basis of Presentation and Principles of Consolidation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. The Consolidated Balance Sheet as of December 31, 2025, has been derived from the audited Consolidated Financial Statements as of that date. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company’s Registration Statement on Form S-1.

Emerging Growth Company Status

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"). Under the JOBS Act, emerging growth companies may delay adopting new or revised accounting standards until such time as those standards apply to private companies. The Company has elected to use this extended transition period for adoption of some accounting standards. As a result, these financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Significant Accounting Policies

There have been no material changes to the Company's significant accounting policies from those described in the annual consolidated financial statements and footnotes included in the Company's Registration Statement on Form S-1. The following policies are highlighted due to updates or activity during the three months ended March 31, 2026.

Concentrations of Credit Risk

The Company’s portfolio consists primarily of commercial loans to small and medium-sized, privately owned businesses in a variety of industries and markets. As of March 31, 2026, the single largest industry concentration in the Company’s loan portfolio was healthcare. The Company does not have any concentrations involving loan product terms. Additionally, the Company does not have concentrations of loans with negative amortization schedules, significant payment increases, or high loan-to-value ratios.

Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the Chief Operating Decision Maker (“CODM”), the Company’s Chief Executive Officer, in deciding how to allocate resources and assessing performance. During the three months ended March 31, 2026 and 2025, all operations were within the United States. The CODM allocates resources and assesses performance based upon financial information at the entity-wide level. Since the CODM makes operating decisions and allocates resources on an entity-wide basis, the Company operates as one operating segment and one reportable segment.

The primary financial measure used by the CODM to evaluate performance and allocate resources is consolidated net income as shown on the Consolidated Statements of Income. Segment expenses and other segment items are provided to the CODM on the same basis as disclosed in the Consolidated Statements of Income.

Advertising

Advertising costs are expensed as incurred and included in advertising and marketing in the Consolidated Statements of Income, and were $2.1 million and $2.6 million for the three months ended March 31, 2026 and 2025, respectively.

Income Taxes

The Company accounts for income taxes in accordance with ASC 740 - Income Taxes. The Company’s effective tax rate was 12.0% and 25.8% for the three months ended March 31, 2026 and 2025, respectively.

The income tax returns of the Company for 2022, 2023, and 2024 are subject to examination by income taxing authorities, generally for three years after they were filed. If the Company identifies an uncertain tax position, an accrual for the estimated tax is recognized in the period the potential tax is identified. The Company has elected to recognize any estimated penalties and interest expense on its income tax liabilities as a component of its provision for income taxes.

Stock-based Compensation

All the Company’s stock options and other equity-based compensation arrangements are classified as equity awards as of March 31, 2026 and December 31, 2025. See Note 14 – Stock-based Compensation for information on the Company’s stock-based compensation.

Subsequent Events

Management has considered material subsequent events, but determined none to exist, for disclosure and recognition through May 15, 2026, the date the Consolidated Financial Statements were available to be issued.

New Accounting Standards

Accounting Standard Adopted in 2025

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires the disclosure of disaggregated information about an entity’s income tax rate reconciliation as well as income taxes paid and income tax expense. The Company adopted the standard on January 1, 2025, on a prospective basis. The adoption did not have a material impact on the Company’s consolidated financial statements.

Accounting Standards Pending Adoption

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses, which requires the disaggregated disclosure of certain income statement categories. The amendments are effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The amendments should be applied either prospectively to financial statements issued for reporting periods after the effective date, or retrospectively to any or