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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to disclose as of March 31, 2026, December 31, 2025 and December 31, 2024: Actual To Be Well Capitalized Under Prompt Corrective Action Provisions (CBLR Framework) (dollars in thousands) Amount Ratio Amount Ratio As of March 31, 2026: Required under CBLR framework: Tier 1 leverage ratio: Company $ 702,893 8.92 % $ 709,386 9.00 % Bank $ 805,006 10.19 % $ 711,015 9.00 % Optional under CBLR framework: Total capital to risk-weighted assets ratio: Company $ 899,369 14.68 % N/A N/A Bank $ 860,274 14.01 % N/A N/A Tier 1 capital to risk-weighted assets ratio: Company $ 702,893 11.47 % N/A N/A Bank $ 805,006 13.11 % N/A N/A Actual To Be Well Capitalized Under Prompt Corrective Action Provisions (CBLR Framework) (dollars in thousands) Amount Ratio Amount Ratio Common Equity Tier 1 to risk weighted-assets ratio: Company $ 702,893 11.47 % N/A N/A Bank $ 805,006 13.11 % N/A N/A

As of December 31, 2025:

Required under CBLR framework:
Tier 1 leverage ratio:
Company $	748,650 9.79	% $	688,367 9.00	%
Bank $	848,960 11.11	% $	687,907 9.00	%

Optional under CBLR framework:
Total capital to risk-weighted assets ratio:
Company $	934,965 15.89	% N/A N/A
Bank $	894,305 15.14	% N/A N/A
Tier 1 capital to risk-weighted assets ratio:
Company $	748,650 12.72	% N/A N/A
Bank $	848,960 14.37	% N/A N/A
Common Equity Tier 1 to risk weighted-assets ratio:
Company $	748,650 12.72	% N/A N/A
Bank $	848,960 14.37	% N/A N/A

As of December 31, 2024:

Required under CBLR framework:
Tier 1 leverage ratio:
Company $	706,501 10.56	% $	602,390 9.00	%
Bank $	796,830 11.92	% $	601,511 9.00	%

Optional under CBLR framework:
Total capital to risk-weighted assets ratio:
Company $	879,305 17.52	% N/A N/A
Bank $	820,217 16.38	% N/A N/A
Tier 1 capital to risk-weighted assets ratio:
Company $	706,501 14.08	% N/A N/A
Bank $	796,830 15.91	% N/A N/A
Common Equity Tier 1 to risk weighted-assets ratio:
Company $	706,501 14.08	% N/A N/A
Bank $	796,830 15.91	% N/A N/A

The Company’s and the Bank’s regulatory capital ratios declined by approximately 90-125 basis points, depending on the ratio, from December 31, 2025 to March 31, 2026. Approximately 20-35 basis points of the

decline was due to relative changes in capital and asset levels in connection with our business operations. The remaining approximately 70-90 basis points of the decline was due to our decision to not reduce the tax carry-forward deduction in regulatory capital by the amount of a deferred credit liability established in connection with the solar servicing business acquisition completed during the third quarter of 2025. We made this decision in April 2026 based on a revised interpretation of the regulatory capital instructions subsequent to the completion of the audit of our consolidated financial statements for the period ended December 31, 2025, and the change was applied to our March 31, 2026 regulatory reporting and will be applied on a prospective basis. If we had applied this interpretation as of December 31, 2025, our Tier 1 leverage ratio, Total capital to risk-weighted assets ratio, Tier 1 capital to risk-weighted assets ratio and Common Equity Tier 1 to risk-weighted asset ratio as of such date would have been 9.08%, 14.97%, 11.80%, and 11.80% for the Company, and 10.40%, 14.22%, 13.45% and 13.45% for Forbright Bank, respectively. You should consider the capital ratios that reflect the above interpretation before making an investment decision with respect to the shares of our Class A common stock offered hereby.

Interest Rate Sensitivity and Market Risk

Interest Rate Sensitivity

As a financial institution, the primary component of our market risk is interest rate volatility. Fluctuations in interest rates will ultimately impact both the level of income and expense recorded on our assets and liabilities, and the market value of assets and liabilities. Interest rate risk is the potential of economic losses due to future interest rate changes. These economic losses can be reflected as a loss of future net interest income and/or a loss of current fair market values. Our objective in managing interest rate risk is to maintain a balance between optimizing net interest income and limiting volatility in earnings and capital across a range of interest rate environments. We seek to manage interest rate risk in a manner consistent with our overall risk appetite, liquidity needs, and capital objectives.

We manage our exposure to interest rates by structuring the balance sheet in the ordinary course of business. Though we have not historically entered into instruments such as leveraged derivatives, interest rate swaps, financial options, financial future contracts or forward delivery contracts for the purpose of reducing interest rate risk, we may enter into such instruments in the future. Based upon the nature of our operations, we are not subject to foreign exchange or commodity price risk. We do not own any trading assets.

While the Company and Bank boards of directors are ultimately responsible for ensuring interest rate risk is managed in a safe and sound manner, and for monitoring the Company’s financial position and performance, the Company and Bank boards of directors have delegated oversight of interest rate risk to their respective Risk Committees. The day-to-day management of interest rate risk has been delegated to the Bank’s Management Asset Liability Committee, which is composed of senior management and operates under policies approved by the Company and Bank boards of directors. The Management Asset Liability Committee meets regularly to review interest rate risk metrics, balance sheet composition, model results and compliance with internal risk limits. In determining appropriate interest rate risk positions, the Management Asset Liability Committee considers, among other factors:

•Current and projected interest rate environments

•Loan and deposit growth assumptions

•Deposit pricing behavior and competitive dynamics

•Prepayment speeds and loan repricing characteristics

•Liquidity and capital levels

•Stress and sensitivity analysis results

The Management Asset Liability Committee formulates strategies based on appropriate levels of interest rate risk which are primarily measured based on measuring the impact of changes in interest rates on net interest income and Economic Value of Equity.

At least quarterly, we measure our interest rate risk position using net interest income and Economic Value of Equity sensitivities. Net interest income sensitivity is based on an earnings simulation that compares net interest income under non-baseline interest rate scenarios to the baseline net interest income earnings simulation and is measured as a percentage variance to baseline net interest income. Economic Value of Equity is a net present value (“economic value”) simulation that compares the economic value of assets and liabilities—economic value of equity results by subtracting economic value of liabilities from economic value of assets—under various non-baseline interest rate scenarios to the baseline Economic Value of Equity and is measured as a percentage variance to baseline Economic Value of Equity. Net interest income sensitivity is generally considered a short-term measure of interest rate risk as it is based on earnings sensitivity over a defined period of time whereas Economic Value of Equity is a long-term measure of interest rate risk as it is a net present value which considers the present value of all future cash flows on assets and liabilities through their lives.

The Management Asset Liability Committee manages interest rate risk in accordance with the Interest Rate Risk Policy which is a board-approved policy that is reviewed at least annually. The Interest Rate Risk Policy establishes thresholds for managing and reporting interest rate risk, including limits for net interest income and Economic Value of Equity sensitivity for interest rate changes of different magnitude, direction, or speed.

Modeling of net interest income and Economic Value of Equity uses both actual instrument-level data as well as assumptions. These assumptions include deposit decays, deposit betas, deposit floors, prepayment speeds, new volume pricing, and discount rates. These assumptions are based on historical observations, relevant third-party data, and management judgment. Most assumptions vary by interest rate scenario based on historical observations, relevant third-party data, and management judgment. Given the use of assumptions and management judgment, the net interest income and Economic Value of Equity models and processes are subject to independent review by both internal and external parties.