SEC Filing Document

Company: Forbright, Inc.
Ticker: 
CIK: 1925062
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2026-04-08
Accession Number: 0001628279-26-000459
Exchange: 
SIC Code: 6022
SIC Description: State Commercial Banks
URL: https://www.sec.gov/Archives/edgar/data/1925062/000162827926000459/filename1.htm

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of the business which owns the property. The repayment of loans secured by investment properties is dependent upon the operation (net operating income) or sale of the property. Both property types may be subject to adverse conditions in the commercial real estate market or in the general economy. •Commercial and Industrial - Within this category, there is further distinction among lender finance and fund finance loans, healthcare asset based-loans, and corporate loans (which are typically cash flow loans, including leveraged loans). The market area for these loans is national with geographic diversification. This loan category also includes the Company’s sustainable finance related lending products, which include nationally originated loans and commercial solar loans, and unsecured small business loans purchased through technology enabled lender platforms. Of primary concern in commercial and industrial lending is the borrower’s creditworthiness and ability to successfully generate cash flow from their business to service the debt.

•Consumer - These loans consist primarily of loans made to individuals for personal, family, and residential real estate purposes (including closed end mortgages and home equity lines of credit), with the majority of the portfolio comprised of loans purchased through technology enabled lender platforms, including consumer solar loans, that are not secured by real estate and, therefore, may entail greater risk than other types of loans. The vast majority of the Company’s consumer loans were purchased or originated before 2024 and a significant portion of the portfolio was sold during 2024. Outside of loans purchased under forward flow purchase agreements, the remaining consumer and residential real estate portfolio represents a small percentage of the loan portfolio. The Company no longer originates residential real estate loans.

Loans Held-for-Sale

As of December 31, 2025 and 2024, the Company had $379.7 million and $316.5 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 related to loans-held-for sale for the years ended December 31, 2025 and 2024. Unrealized gains, net related to loans held-for-sale are included with Unrealized gains on loans and financing receivables, net in the Consolidated Statements of Income. Realized gains/(losses), net are recognized in Gains/(losses) on sales of loans and investment securities, net in the Consolidated Statements of Income.

(in thousands) December 31, 2025 December 31, 2024
Proceeds from sales $	280,518 $	340,526
Realized gains/(losses), net $	11,385 $	(11,563)
Unrealized gains, net $	6,662 $	3,151

The following tables present, by loan category, the carrying amount and unpaid contractual balance of the Company’s loans held-for-sale as of December 31, 2025 and 2024:

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

December 31, 2024

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 $	108,575 $	116,376 $	207,909 $	212,082 $	316,484 $	328,458
Total loans held-for-sale $	108,575 $	116,376 $	207,909 $	212,082 $	316,484 $	328,458

Loans Held for Investment at Amortized Cost

Loans held for investment at amortized cost, by loan category, as of December 31, 2025 and 2024, are presented in the following table:

(in thousands) December 31, 2025 December 31, 2024

Commercial Real Estate $	2,528,996 $	1,730,883

Commercial and Industrial 2,475,549 1,986,457
Consumer 217,689 246,633
Total loans held for investment at amortized cost $	5,222,234 $	3,963,973

Total outstanding loans held for investment at amortized cost are net of deferred fees and costs of $54.7 million and $57.9 million as of December 31, 2025 and 2024, respectively.

Total outstanding loans held for investment at amortized cost excludes accrued interest receivable of $32.1 million and $26.7 million as of December 31, 2025 and 2024, 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 December 31, 2025 and 2024. See Note 19 – Related Party Transactions for more information.

NOTE 5 – CREDIT QUALITY ASSESSMENT

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

See Note 1 – Significant Accounting Policies for more information on the Company’s accounting policy for the allowance for credit losses.

The following table summarizes the activity in the allowance for credit losses for loans held for investment at amortized cost for the years ended December 31, 2025 and 2024:

(in thousands) December 31, 2025 December 31, 2024

Balance at beginning of period $	42,294 $	74,745

Provision for credit losses on loans 23,344 10,896

Provision for/(recovery of) credit losses on loan transfers from/to loans held-for-sale 148 (9,548)

Loan charge-offs (15,414) (36,232)

Loan recoveries 2,614 2,433
Net charge-offs (12,800) (33,799)
Balance at end of period $	52,986 $	42,294

Loans held-for-sale and loans held for investment at fair value do not require an allowance because they are carried at fair value and therefore any changes to the cost basis in the loan are recognized in earnings, as unrealized gains or losses in non-interest income, in the period of the change.

The following tables detail activity in the allowance for credit losses for loans held for investment carried at amortized cost, by loan category, for the years ended December 31, 2025 and 2024:

December 31, 2025

(dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total
Allowance for credit losses:
Beginning of period $	12,078 $	19,380 $	10,836 $	42,294
Provision for credit losses - loans 6,418 12,807 4,119 23,344
Provision for credit losses - transfers of loans 144 4 — 148
Loan charge-offs — (7,374) (8,040) (15,414)
Loan recoveries — 1,205 1,409 2,614
Net charge-offs — (6,169) (6,631) (12,800)
End of period $	18,640 $	26,022 $	8,324 $	52,986
Individually evaluated for credit loss $	— $	2,244 $	— $	2,244
Collectively evaluated for credit loss 18,640 23,778 8,324 50,742
Total allowance for credit losses $	18,640 $	26,022 $	8,324 $	52,986
Loans held for investment at amortized cost:
Individually evaluated for credit loss $	96,807 $	20,667 $	2,495 $	119,969
Collectively evaluated for credit loss 2,432,189 2,454,882 215,194 5,102,265
Total loans held for investment at amortized cost $	2,528,996 $	2,475,549 $	217,689 $	5,222,234
Allowance for loans to loan type ratio:
Individually evaluated for credit loss —	% 10.86	% —	% 1.87	%
Collectively evaluated for credit loss 0.77	% 0.97	% 3.87	% 0.99	%
Total loans held for investment at amortized cost 0.74	% 1.05	% 3.82	% 1.01	%

December 31, 2024

(dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total
Allowance for credit losses:
Beginning of period $	23,203 $	26,460 $	25,082 $	74,745
Provision for credit losses - loans 5,228 78 5,590 10,896
Recovery of credit losses - transfers of loans (58) (158) (9,332) (9,548)
Loan charge-offs (16,495) (7,359) (12,378) (36,232)
Loan recoveries 200 359 1,874 2,433
Net charge-offs (16,295) (7,000) (10,504) (33,799)
End of period $	12,078 $	19,380 $	10,836 $	42,294
Individually evaluated for credit loss $	— $	922 $	— $	922
Collectively evaluated for credit loss 12,078 18,458 10,836 41,372
Total allowance for credit losses $	12,078 $	19,380 $	10,836 $	42,294
Loans held for investment at amortized cost:
Individually evaluated for credit loss $	83,100 $	67,573 $	1,932 $	152,605
Collectively evaluated for credit loss 1,647,783 1,918,884 244,701 3,811,368
Total loans held for investment at amortized cost $	1,730,883 $	1,986,457 $	246,633 $	3,963,973
Allowance for loans to loan type ratio:
Individually evaluated for credit loss —	% 1.36	% —	% 0.60	%
Collectively evaluated for credit loss 0.73	% 0.96	% 4.43	% 1.09	%
Total loans held for investment at amortized cost 0.70	% 0.98	% 4.39	% 1.07	%

Credit Quality

The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The risk rating system is central to the overall credit risk management discipline and the important first step in effectively monitoring the credit quality of the portfolio. Credit risk ratings are applied individually to those classes of assets that have significant or unique credit characteristics that benefit from a case-by-case evaluation. Groups of assets that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk rated and monitored collectively. These are typically assets to individuals in the classes which comprise the consumer portfolio category.

The following are the definitions of the Company’s credit quality indicators: