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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the 2014 Plan. Compensation expense is recognized using the graded method over the vesting period of the stock option or restricted stock award granted. During the years ended December 31, 2025 and 2024, expense of $8.7 million and $7.6 million, respectively, was recognized associated with stock options and restricted stock awards. The Company recognized a tax benefit of $2.3 million and $1.9 million, respectively, for the years ended December 31, 2025 and 2024, related to stock-based compensation expense. Stock Options Stock option awards are granted with an exercise price equal to the fair value of the Company’s Voting Common Stock at the date of grant; those option awards generally vest based on five years of continuous service and have 10-year contractual terms. Certain option and share awards provide for accelerated vesting if there is a change in control. Stock options issued can require meeting certain performance criteria prior to exercise.

The fair values of options granted during the year ended December 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 year ended December 31, 2025:

December 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%

The fair values of the options granted during the year ended December 31, 2024, were determined based on Black-Scholes option-pricing and Monte Carlo Simulation models using the following assumptions:

December 31, 2024

Volatility 35%
Expected dividend yield —%

Expected term 6.5 years

Risk-free rate 4.00%

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 year ended December 31, 2025, 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, 2024 9,834,392 $	14.06 6.5 years $	37,849
Granted 204,000 $	18.27
Exercised (100,700) $	11.61 $	561
Forfeited or expired (128,000) $	14.33

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

Exercisable as of December 31, 2025 5,795,496 $	15.00 5.4 years $	29,738

Of the 9,809,692 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 period ended December 31, 2025, is presented in the following table:
Shares Weighted-Average Grant-Date Fair Value

Unvested as of December 31, 2024 3,947,580 $	4.19
Granted 204,000 $	7.00
Vested (1,850,540) $	4.11
Forfeited (68,000) $	4.92

Unvested as of December 31, 2025 2,233,040 $	4.49

The total fair value of stock options vested during the years ended December 31, 2025 and 2024, was $7.6 million and $7.9 million, respectively. As of December 31, 2025, there was $3.4 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 1.1 years.

Restricted Stock Awards

The Company granted 383,022 restricted stock awards during the year ended December 31, 2025. The vesting terms for restricted stock awards granted range from one to five years.

The following table summarizes the unvested restricted stock awards activity for the year ended December 31, 2025:

Shares Weighted-Average Grant-Date Fair Value

Balance as of December 31, 2024 26,000 $	16.22
Granted 383,022 $	16.78
Vested (13,000) $	16.22

Balance as of December 31, 2025 396,022 $	16.76

As of December 31, 2025, there was $3.8 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 2.3 years.

NOTE 15 – EMPLOYEE BENEFIT PLANS

As of December 31, 2025, 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 contributed. Both employee contributions and employer matching contributions vest immediately. During the years ended December 31, 2025 and 2024, the Company made matching contributions of $3.1 million $2.5 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 years ended December 31, 2025 and 2024.

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 years ended December 31, 2025 and 2024:

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

Servicing income $	8,190 $	—

Net fee on FHA/HUD originations 6,769 —

Program fees 5,371 5,968

Deposit fees 1,098 922
Other non-interest income 5,638 (312)
Total other non-interest income $	27,066 $	6,578

In September 2025, as part of the settlement of a $68.6 million loan, the Company received certain assets, primarily net operating loss carryforwards and solar servicing rights. This transaction was accounted for as an asset

acquisition. As the fair value of the consideration received was in excess of the $68.6 million loan balance at the date of settlement, that excess was allocated on a relative fair value basis to all qualifying assets.

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

Occupancy expense $	4,687 $	5,034
Referral fees 2,663 2,944
Other non-interest expense 11,582 12,547
Total other non-interest expense $	18,932 $	20,525

During the years ended December 31, 2025 and 2024, the Company recognized $1.8 million and $2.1 million, respectively, of audit and audit-related fees, and $853 thousand and $542 thousand, respectively, of other fees for services provided by its principal auditors, Ernst & Young LLP.

NOTE 17 – INCOME TAXES

The components of income tax expense for the years ended December 31, 2025 and 2024, are presented in the following table:

(in thousands) December 31, 2025 December 31, 2024
Current income tax:
Federal $	487 $	4,121
State 1,523 2,765
Total current income tax expense 2,010 6,886
Deferred income tax:
Federal 9,919 3,916
State 1,302 199
Total deferred income tax expense/(benefit) 11,221 4,115
Total income tax expense $	13,231 $	11,001

The Company's state income tax expense is primarily attributable to California and Maryland, which together account for more than 50% of the total state income tax expense.

The reconciliations of the income tax expense computed using the federal statutory rates and income tax expense recognized for the years ended December 31, 2025 and 2024, are presented in the following table:

December 31, 2025 December 31, 2024

(dollars in thousands) Amount Percentage of Pre-Tax Income Amount Percentage of Pre-Tax Income
Income tax at the federal statutory rate $	21,243 21.0	% $	11,417 21.0	%
State income tax, net of federal benefit 3,491 3.5	% 2,341 4.3	%
Adjustment of provision to tax return 2 —	% (2,090) (3.8)	%
Change in valuation allowance — —	% 519 0.9	%
Permanent items (61) (0.1)	% 150 0.3	%

Research and development credits (237) (0.2)	% (1,090) (2.0)	%

Deferred credit assumed in solar servicing business transaction (11,221) (11.1)	% — —	%
Other 14 —	% (246) (0.5)	%
Total income tax expense and rate $	13,231 13.1	% $	11,001 20.2	%