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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purchase additional consumer loans through forward flow programs or originate new consumer loans during 2024. Our remaining consumer portfolio represents a de minimis percentage of our total loan portfolio. •Solar - The loans in this portfolio category are principally comprised of consumer solar loans that were purchased through technology enabled lender platforms with forward flow purchase agreements and commercial solar loans that were purchased on an individual loan basis. We no longer purchase consumer solar loans through forward flow programs, however, we continue to purchase commercial solar loans. We continue to hold previously purchased consumer and commercial solar loans on our balance sheet. Total loans were $ billion as of December 31, 2025, a of $ billion or % compared with $4.3 billion as of December 31, 2024. Loans as of December 31, 2025 and December 31, 2024, included $ million and $316.5 million of loans held for sale, respectively.

The following table presents loans held for investment at amortized cost, by loan type, as of December 31, 2025 and 2024:

December 31,
2025 2024 Change
(in thousands) Amount % of total loans Amount % of total loans $ %
Commercial real estate $ % $	1,694,575 42.7	% $ %
Commercial % 1,978,130 49.9	% %
Residential real estate % 71,037 1.8	% %
Consumer % 126 —	% %
Solar % 220,105 5.6	% %
Total loans held for investment at amortized cost $ % $	3,963,973 100.0	% $ %

n/m - not meaningful

As of December 31, 2025, total loans held for investment at amortized cost were $ billion, a of $ billion or      % compared to $4.0 billion as of December 31, 2024, primarily due to          .

Loans held for investment at fair value, by loan type, as of December 31, 2025 and 2024, are presented in the following table:

December 31,
2025 2024 Change
(in thousands) Amount % of total loans Amount % of total loans $ %
Commercial $ % $	7,081 100.0	% $ %
Total loans held for investment at fair value $ % $	7,081 100.0	% $ %

As of December 31, 2025, total loans held for investment at fair value were $ million, a       of $ million or      % compared to $7.1 million as of December 31, 2024, primarily due to           .

As of December 31, 2025 and December 31, 2024, total loans were      %, and 77.0% of deposits, respectively and      %, and 59.1% of total assets, respectively.

The contractual maturity ranges of total loans held for investment in our loan portfolio and the amount of such loans with fixed interest rates and floating rates in each maturity range as of December 31, 2025, are summarized in the following table. Contractual maturities are based on contractual amounts outstanding and do not include deferred fees and costs or purchase discounts.

One Year Through Through Through After
(in thousands) or Less Five Years Ten Years Fifteen Years Fifteen Years Total
Variable rate loans:
Commercial real estate $ $ $ $ $ $
Commercial
Residential real estate
Consumer
Solar
Total variable rate loans $ $ $ $ $ $
Fixed rate loans:
Commercial real estate $ $ $ $ $ $
Commercial
Residential real estate
Consumer
Solar
Total fixed rate loans $ $ $ $ $ $
Total loans held for investment $ $ $ $ $ $

ACL - Loans

We estimate an ACL - loans for our loan portfolio held for investment at amortized cost which represents management’s expected credit losses over the expected contractual life of its loans. The estimate is based on both quantitative and qualitative components; each of which is subject to uncertainty.

The quantitative component, including the ACL on individually assessed loans, considers historical and recent loss performance, current portfolio composition, portfolio- and/or loan-specific asset quality data, and actual and forecasted economic conditions. The quantitative estimate is subject to inherent uncertainty given potential differences between actual economic conditions and projected economic conditions including United States macroeconomic indicators like the unemployment rate, home prices, and commercial real estate prices. Variances between actual and projected economic indicators during the reasonable and supportable period could create differences between the ACL and actual credit losses incurred over the life of the loans. The economic environment during the reasonable and supportable period is scenario-weighted and utilizes scenario forecasts from a provider of macroeconomic scenario forecasts that are commonly used within the industry. Additionally, beyond the reasonable and supportable period, economic conditions and credit losses could vary from long-term historical averages. In addition to differences between forecasted economic conditions and actual economic conditions, the quantitative estimate assumes historical loss performance and credit quality metrics inform future expected credit losses. While historical correlations are a helpful starting point for modeling future expected losses, historically observed correlations can change and idiosyncratic events for borrowers can lead to credit losses that were not properly captured by the quantitative modeling.

The qualitative component of the ACL attempts to address the inherent uncertainty in the quantitative modeling and considers quantitative data where possible. The qualitative considerations align with the Interagency Policy Statement on ACL and consider input from an internal management committee. While an experienced and highly-informed committee provides input on qualitative factors, qualitative factors are inherently judgmental and subject to uncertainty.

The quantitative estimate component is sensitive to portfolio composition, changes in the forecasted economic variables, historical loss data, credit quality metrics including risk ratings, and changes in the contractual lives of loans. Qualitative estimates are sensitive to perceived risk in the economy not fully captured in the economic scenarios as well as factors deemed to potentially cause future loss performance to differ from historically observed performance that is not fully captured in the quantitative model.

The quantitative and qualitative components are subject to frequent independent review and challenge. While management estimates the ACL on its loan portfolio based on available information, the ACL may be inadequate to cover future losses given the uncertainty in the quantitative and qualitative components.

The following table provides detail activity in the ACL - loans held for investment carried at amortized cost for the years ended December 31, 2025 and 2024. Allocation of a portion of the ACL - loans to one category of loans does not preclude its availability to absorb losses in other categories:

As of and for the years ended December 31,

(dollars in thousands) 2025 2024
Average loans outstanding, at amortized cost $ $	3,683,140
Total loans outstanding, at amortized cost at end of period $ $	3,963,973

ACL - loans:
Beginning of period $ $	74,745
Provision for credit losses on loans 10,896
Recovery of credit losses on loans - transfers (9,548)
Loan charge-offs: —
Commercial real estate (16,495)
Commercial (7,359)
Residential real estate —
Consumer (3,629)
Solar (8,749)
Total charge-offs (36,232)
Loan recoveries:
Commercial real estate 200
Commercial 359
Residential real estate 47
Consumer 1,079
Solar 748
Total recoveries 2,433
Net charge-offs (33,799)
End of period $ $	42,294
Ratio of ACL - loans to total loans at amortized cost at period end % 1.07	%
Ratio of net charge-offs to average total loans % (0.85)	%

We maintain an ACL - loans that represents management’s best estimate of the loan losses in our loan portfolio.

As of December 31, 2025, the ACL - loans totaled $ million, or      % of total loans held for investment at amortized cost. As of December 31, 2024, the allowance totaled $42.3 million or 1.07% of total loans held for investment at amortized cost. The       in the provision was primarily driven by           .

The ACL - loans as a percentage of total loans held for investment at amortized cost by basis points as of December 31, 2025 compared to December 31, 2024.

The following tables present activity in the ACL - loans by loan category, for the years ended December 31, 2025 and 2024. Allocation of a portion of the ACL - loans to one category of loans does not preclude its availability to absorb losses in other categories.

For the Year Ended December 31, 2025

(dollars in thousands) Commercial Real Estate Commercial Residential Real Estate Consumer Solar Total
Total loans outstanding at end of period, at amortized cost $ $ $ $ $ $
ACL - loans:
Beginning of period $ $ $ $ $ $
Provision for credit losses on loans
Provision for credit losses - transfers of loans
Loan charge-offs
Loan recoveries
Net charge-offs
End of period $ $ $ $ $ $
ACL - loans to loan type ratio % % % % % %

For the Year Ended December 31, 2024