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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March 31, 2026 Black-Scholes Volatility 45% Expected dividend yield —% Expected term 6.5 years Risk-free rate 3.89% The fair values of options granted during the three months ended March 31, 2025, were determined using the Black-Scholes option-pricing model. For option series that are subject to exercise conditions in addition to the grant date exercise price, the Black-Scholes option pricing model was used in conjunction with (i) a Monte Carlo Simulation model for determining stock price values and (ii) probability weights for scenarios where the Company either remains independent or is acquired. The description of the exercise conditions that apply to certain series of options is more fully described in the 2014 Plan. The following table presents the assumptions used to determine the fair value of the options granted during the three months ended March 31, 2025: March 31, 2025 Black-Scholes Monte Carlo Volatility 40% 40% Expected dividend yield —% —%

Expected term 6.5 years 2.25 - 10.0 years

Risk-free rate 4.46% 4.25% - 4.58%

An active market for the Company’s common stock does not exist, therefore the expected volatility is based on the average annual historical volatility of common stock for comparable public banks in the banking industry. The estimated option life is derived from the “simplified method” formula. The risk-free rate is based upon the U.S. Treasury note rate in effect at the time of grant. The expected dividend yield is based upon implied and historical dividend declarations.

A summary of the activity of options outstanding activity for the three months ended March 31, 2026, is presented in the following table:

(dollars in thousands, except per share amounts) Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value

Outstanding as of December 31, 2025 9,809,692 $	14.61 5.6 years $	54,150
Granted 85,000 $	20.13

Outstanding as of March 31, 2026 9,894,692 $	14.82 5.4 years $	52,577

Exercisable as of March 31, 2026 5,888,126 $	15.18 5.2 years $	29,171

Of the 9,894,692 outstanding option shares, 2,325,336 option shares with a weighted average exercise price of $12.97 are subject to conditions with respect to stock price levels that must be satisfied to exercise the options, as more fully described in the 2014 Plan.

A summary of the activity of unvested stock options activity for the three months ended March 31, 2026, is presented in the following table:

Shares Weighted-Average Grant-Date Fair Value

Unvested as of December 31, 2025 2,233,040 $	4.49
Granted 85,000 $	10.17
Vested (135,500) $	4.92

Unvested as of March 31, 2026 2,182,540 $	4.69

The total fair value of stock options vested during the three months ended March 31, 2026 and 2025, was $716 thousand and $740 thousand, respectively. As of March 31, 2026, there was $2.5 million of unrecognized compensation cost related to stock options granted under the 2014 Plan, and is expected to be recognized over a weighted-average period of 2.1 years.

Restricted Stock Awards

The Company granted 181,860 restricted stock awards during the three months ended March 31, 2026. The restricted stock awards granted during the three months ended March 31, 2026 vest over three years.

The following table summarizes the unvested restricted stock awards activity for the three months ended March 31, 2026:

Shares Weighted-Average Grant-Date Fair Value

Balance as of December 31, 2025 396,022 $	16.76
Granted 181,860 $	20.13
Vested (91,532) $	16.78

Balance as of March 31, 2026 486,350 $	18.02

As of March 31, 2026, there was $6.5 million of unrecognized compensation cost related to unvested restricted stock awards granted under the 2014 Plan, which is expected to be recognized over a weighted-average period of 2.1 years.

NOTE 15 – EMPLOYEE BENEFIT PLANS

As of March 31, 2026, the Company had The 401(k) Plan, Adopted by Forbright Bank (“401(k) Plan”), a multiple employer plan covering all full-time and part-time employees. Employees become eligible to participate in the 401(k) Plan on the first day of the month that is 30 days after their hire date. Under the 401(k) Plan, a participant may elect to contribute up to 80% of their compensation to the extent the total dollar amount is permitted by law. Under the terms of the 401(k) Plan, the Company will make a matching contribution of 100% up to 4% of employee compensation. Both employee contributions and employer matching contributions vest immediately. During the three months ended March 31, 2026 and 2025, the Company made matching contributions of $0.7 million and $0.7 million, respectively. The Company may also make discretionary contributions for each participant. The amount of discretionary contribution, if any, is determined on an annual basis by the Company’s Board of Directors. No discretionary contributions were made by the Company during the three months ended March 31, 2026 and 2025.

NOTE 16 – OTHER NON-INTEREST INCOME AND NON-INTEREST EXPENSE

The following tables present selected components of other non-interest income and other non-interest expense for the three months ended March 31, 2026 and 2025:

(in thousands) March 31, 2026 March 31, 2025
Trust administration $	4,264 $	—

Net fee on FHA/HUD originations 266 3,259

Program fees 592 996

Deposit fees 304 256
Other non-interest income (756) 98
Total other non-interest income $	4,670 $	4,609

(in thousands) March 31, 2026 March 31, 2025

Occupancy expense $	1,122 $	1,332
Referral fees 360 465
Other non-interest expense 2,639 2,360
Total other non-interest expense $	4,121 $	4,157

NOTE 17 – EARNINGS PER COMMON SHARE

The following table presents the calculation of basic and diluted earnings per share for the three months ended March 31, 2026 and 2025:

March 31, 2026 March 31, 2025

(in thousands, except share and per share data) Voting Non-Voting Voting Non-Voting

Basic Earnings Per Common Share:

Net income $	5,490 $	6,142 $	5,251 $	5,876

Weighted-average shares - basic 19,063,817 21,242,551 18,986,447 21,242,551

Basic earnings per common share $	0.29 $	0.29 $	0.28 $	0.28

Diluted Earnings Per Common Share:

Net income $	5,809 $	5,823 $	5,434 $	5,693
Weighted-average shares - basic 19,063,817 21,242,551 18,986,447 21,242,551
Effect of dilutive securities - stock options and restricted stock awards 2,124,875 — 1,287,431 —

Weighted-average shares - diluted 21,188,692 21,242,551 20,273,878 21,242,551

Diluted earnings per common share $	0.27 $	0.27 $	0.27 $	0.27

The Company has two classes of common stock, Voting and Non-voting, which are participating securities. Earnings are allocated to each class based on their respective participation rights, and basic and diluted earnings per share are presented under the two-class method in accordance with ASC 260. All potentially dilutive shares have voting rights, and net income has been reallocated to reflect the incremental dilutive voting shares.

Diluted weighted-average shares outstanding includes 2,124,875 and 1,287,431 incremental common stock equivalents related to stock options and restricted stock awards as calculated under the treasury-stock method for the three months ended March 31, 2026 and 2025, respectively, as the stock options and restricted stock awards are not considered participating securities. For the three months ended March 31, 2026 and 2025, 18,894 shares and 21,063 shares, respectively, of common stock equivalents were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. Additionally, for the three months ended March 31, 2026 and 2025, 2,325,336 stock options and 2,289,136 stock options, respectively, with unresolved substantive contingencies that must be satisfied before shares can be exercised and issued, and therefore do not represent potential shares of common stock, have been excluded from the weighted-average shares outstanding to calculate basic and diluted earnings per common 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.