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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are required to maintain. Critical Accounting Estimates We prepare our consolidated financial statements according to GAAP. Preparing these statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities on the balance sheet and the reported amounts of revenues and expenses during the reporting period in the statement of income. Our most significant critical accounting estimate relates to the ACL, which represents management’s estimate of expected lifetime credit losses on loans, held-to-maturity securities, and financing receivables, and is determined using historical loss experience, current conditions, and reasonable and supportable forecasts, with accrued interest receivable excluded from the measurement. We also apply significant judgment in assessing the realizability of the net operating loss portion of our deferred tax assets, which depends primarily on our ability to generate sufficient future taxable income and may be affected by changes in operating results, tax laws, or other assumptions.

See below in “—Results of Operations for the Years Ended December 31, 2025 and 2024—Income Taxes” for additional discussion regarding our critical accounting estimates as they relate to our deferred tax assets and in “—Financial Condition —ACL—Loans” and “Financial Condition—ACL—Investment Securities” for additional discussion regarding our critical accounting estimates as they relate to our ACL.

Our significant accounting policies and the effects of new accounting pronouncements are detailed in Note 1, “Organization and Summary of Significant Accounting Policies,” to our consolidated financial statements and the notes thereto included elsewhere in this prospectus.

Financial and Business Highlights:

2025 Highlights

Highlights of our results of operations and financial condition for the year ended December 31, 2025 are as follows:

Results of Operations for the Years Ended December 31, 2025 and 2024

Average Balance Sheets

The following table shows the average outstanding balance of each major category of asset, liability and stockholders’ equity, along with the associated interest income or expense and the yield on average earning-asset or rate on interest-bearing liability. The associated yield or cost is calculated by dividing the interest income or interest expense by the corresponding daily average balance over the same period.

Year Ended December 31, 2025 Year Ended December 31, 2024
(dollars in thousands) Average balance Interest income/expense Average yields earned/rates paid Average balance Interest income/expense Average yields earned/rates paid
Assets:
Total loans held for investment $ $ % $	3,683,140 $	332,852 9.04	%
Total loans held-for-sale % 340,278 38,592 11.34	%
Total loans % 4,023,418 371,444 9.23	%
Total investment securities % 1,405,086 71,493 5.09	%
Interest-bearing deposits with banks % 1,020,070 54,953 5.39	%
Other earnings assets % 54,861 3,265 5.95	%

Total interest-earning assets % 6,503,435 501,155 7.71	%
ACL (54,975)

Other assets 200,287
Total assets $ $	6,648,747
Liabilities and stockholders’ equity
Interest-bearing demand deposits $ $ % $	525,478 $	19,628 3.74	%
Money market deposits % 915,122 38,942 4.26	%
Savings deposits % 875,777 42,857 4.89	%
Time deposits % 3,075,729 158,352 5.15	%
Total interest-bearing deposits % 5,392,106 259,779 4.82	%

Subordinated debt, net % 174,319 9,029 5.18	%
Other borrowings % 51,656 2,791 5.40	%
Total interest-bearing liabilities % 5,618,081 271,599 4.83	%
Non-interest-bearing demand deposits 271,796
Other liabilities 68,587
Total liabilities 5,958,464
Stockholders’ equity 690,283
Total liabilities and stockholders’ equity $ $	6,648,747
Net interest income and spread $ % $	229,556 2.88	%
Net interest margin % 3.53	%

Changes in average balances of loans, investment securities, deposits and borrowings during 2025 compared to 2024 were primarily driven by          .

Return on average total assets was % for the year ended December 31, 2025, compared to 0.65% for the year ended December 31, 2024. The            was primarily driven by           .

Return on average shareholders’ equity was      % for the year ended December 31, 2025, compared to 6.28% for the year ended December 31, 2024. The was primarily driven by           .

Rate Volume Analysis

The following table presents the effects of changes in the average balances of interest-earning assets and interest-bearing liabilities and the corresponding yields and rates on net interest income during the period indicated.

Year Ended December 31, 2025 compared to 2024
Change due to:
(in thousands) Volume Yield/rate Total change
Interest-earning assets:
Loans held for investment $ $ $
Loans held-for-sale
Investment securities
Interest-bearing deposits with banks
Other earning assets
Total interest-earnings assets $ $ $
Interest-bearing liabilities:
Interest-bearing demand deposits $ $ $
Money market deposits
Savings deposits
Time deposits
Total deposits

Subordinated debt, net
Other borrowings
Total interest-bearing liabilities $ $ $
Increase/(decrease) in net interest income $ $ $

Net Interest Income

The following table discloses the components of net interest income for the years ended December 31, 2025 and 2024:

For the Years Ended December 31,
Change
(dollars in thousands) 2025 2024 $ %
Interest income:
Loans held for investment $ $	332,852 $ %
Loans held-for-sale 38,592 %
Deposits with banks 54,953 %
Interest on investment securities 71,493 %
Interest and dividends on other earning assets 3,265 %
Total interest income 501,155 %
Interest expense:
Deposits 259,779 %

Subordinated debt, net 9,029 %
Other borrowings 2,791 %
Total interest expense 271,599 %
Net interest income before the provision for/(recovery of) credit losses $ $	229,556 $ %

Net interest income before the provision for credit losses for the year ended December 31, 2025 was $ million compared with $229.6 million for the year ended December 31, 2024, a of $ million or       %, primarily due to           .

Net interest margin, defined as net interest income divided by average interest-earning assets, for the year ended December 31, 2025 was       %, a of basis points compared with 3.53% for the year ended December 31, 2024, primarily due to           .

Interest Income

Interest income for the year ended December 31, 2025, was $ million compared to $501.2 million for the year ended December 31, 2024, a of $ million, or       %, primarily due to           .

Interest Expense

Interest expense for the year ended December 31, 2025, was $ million compared to $271.6 million for the year ended December 31, 2024, a of $ million, or       %, primarily due to           .

Provision for (recovery of) Credit Losses

The ACL represents an amount which, in management’s judgment, is adequate to absorb the lifetime expected credit losses that may be sustained on assets carried at amortized cost as of the balance sheet date. The provision for credit losses represents the amount of expense charged to current earnings from an increase in the ACL. Conversely, a recovery of credit loss is recorded to earnings when the ACL is reduced. Our provisions for, or recovery of, credit

losses arising from within the loan, unfunded loan commitments, investment securities, and financing receivables portfolios were as follows:

For the Years Ended December 31,
(dollars in thousands) 2025 2024 $ Change % Change
Recovery of credit losses:
Provision for credit losses on loans $ $	1,348 $ %
Recovery of credit losses on investment securities (565) %
Recovery of credit losses on financing receivables (1) %
Recovery of credit losses on unfunded commitments (2,470) %
Total recovery of credit losses $ $	(1,688) $ %

The provision for credit losses           to $ million for the year ended December 31, 2025 compared to $1.7 million for the year ended December 31, 2024, primarily due to           . The ACL - loans to total loans was     % and 1.07% as of December 31, 2025 and 2024, respectively.

See below in “—Financial Condition —ACL—Loans” and “—Financial Condition —ACL—Investment Securities” for additional discussion regarding our ACL.

Non-interest Income

The following table presents non-interest income for the years ended December 31, 2025 and 2024 and the change between periods, by major component:

For the Years Ended December 31,
(dollars in thousands) 2025 2024 $ Change % Change

Losses on sales of loans, financing receivables, and investment securities, net $ $	(11,563) $ %
Investment advisory fees 19,385 %
Unrealized gains on loans and financing receivables, net 3,012 %
Charge-offs on loans carried at fair value (3,330) %
Other non-interest income 15,609 %
Total non-interest income $ $	23,113 $ %

For the year ended December 31, 2025, non-interest income was $ million, a       of $ million or      % compared with the year ended December 31, 2024, primarily due to           .

Losses on sales of loans, financing receivables, and investment securities, net $ million, or      % compared to the year ended December 31, 2024, primarily due to           .

Investment advisory fees were $ million for the year ended December 31, 2025, a       of $ million, or       % compared to the year ended December 31, 2024, driven primarily by           .

Unrealized gains on loans and financing receivables, net $ million, or      % compared to the year ended December 31, 2024, primarily due to           .

Charge-offs on loans carried at fair value       $ million, or      % compared to the year ended December 31, 2024, primarily due to           .

Other non-interest income was $ million for the year ended December 31, 2025, a       of $ million, or       % compared to the year ended December 31, 2024, driven primarily by           .