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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Document Content:

2024. Interest-bearing deposits were $6.4 billion as of December 31, 2025, an increase of $1.1 billion, or 20.7%, compared with $5.3 billion as of December 31, 2024. As of December 31, 2025, the estimated aggregate amount of uninsured deposits (deposits in amounts greater than $250,000 per depositor, per account ownership category, which is the maximum amount for federal deposit insurance) was $887.9 million, which is 13.1% of total deposits. The following table sets forth the amount of time deposits that are $250,000 or greater, by time remaining until maturity: (in thousands) December 31, 2025 Three months or less $ 78,227 Over three months through six months 62,567 Over six months through twelve months 34,917 Over twelve months 4,533 Total time deposits $ 180,244 The daily average balances and weighted average rates paid on deposits for each of the years ended December 31, 2025 or 2024 are presented below: December 31,

(dollars in thousands) Average Balance Interest Expense Average Rate Average Balance Interest Expense Average Rate
Non-interest-bearing deposits $	287,741 $	— —	% $	271,796 $	— —	%
Interest-bearing deposits:
Demand 295,772 10,909 3.69	% 525,478 19,628 3.74	%
Money market 924,371 36,208 3.92	% 915,122 38,942 4.26	%
Savings 2,945,069 121,669 4.13	% 875,777 42,857 4.89	%
Time deposits 1,690,619 74,617 4.41	% 3,075,729 158,352 5.15	%
Total interest-bearing deposits 5,855,831 243,403 4.16	% 5,392,106 259,779 4.82	%
Total deposits $	6,143,572 $	243,403 3.96	% $	5,663,902 $	259,779 4.59	%

The ratio of average non-interest-bearing deposits to average total deposits for the years ended December 31, 2025 and 2024 was 4.7%, and 4.8%, respectively.

Borrowed Funds

Subordinated Debt

In 2016, we issued $17.0 million of Fixed Rate Subordinated Notes (“2016 Fixed Rate Notes”). The 2016 Fixed Rate Notes are unsecured, mature on December 30, 2026 and pay interest of 7.0% semi-annually, in arrears. We redeemed the 2016 Fixed Rate Notes at par in 2025.

In 2016, we issued $7.0 million of Fixed to Floating Rate Subordinated Notes (“2016 Fixed to Floating Notes”). The 2016 Fixed to Floating Notes are unsecured, mature on December 30, 2026, and paid an initial interest of 6.5% semi-annually, in arrears. Beginning on December 30, 2021, the 2016 Fixed to Floating Notes interest rate reset quarterly to an interest rate per annum equal to the three-month LIBOR plus 469.5 basis points, paid quarterly in arrears. If the three-month LIBOR was less than zero, the three-month LIBOR was deemed to be zero. Due to the cessation of LIBOR on June 30, 2023, the 2016 Fixed to Floating Notes interest rate resets quarterly to an interest rate per annum equal to the three-month SOFR plus 495.7 basis points, paid quarterly in arrears. If the three-month SOFR is less than zero, the three-month SOFR shall be deemed to be zero. The SOFR-based interest rate became effective on October 1, 2023. We redeemed the 2016 Fixed to Floating Notes at par in 2025.

In 2019, we issued $25.0 million of Fixed to Floating Rate Subordinated Notes (“2019 Notes”). The 2019 Notes are unsecured, mature on December 1, 2029, and paid an initial interest of 5.75% semi-annually, in arrears. Beginning on December 1, 2024, the 2019 Notes interest rate resets quarterly to an interest rate per annum equal to the three-month SOFR plus 439 basis points, paid quarterly in arrears. If the three-month SOFR is less than zero, the three-month SOFR shall be deemed to be zero. We may redeem the 2019 Notes at par.

In 2021, we issued $125.0 million of Fixed to Floating Rate Subordinated Notes (“2021 Notes”). The 2021 Notes are unsecured, mature on January 1, 2032 and pay an initial interest of 4.0% semi-annually through January 1, 2027, in arrears. Beginning on January 1, 2027, through the earlier of maturity date or the early redemption date, the interest rate will adjust quarterly equal to the three-month term SOFR plus 289 basis points, paid quarterly in arrears. The 2021 Notes are non-callable for the first five years; we have the option to redeem the 2021 Notes at par value, after five years from the date of issuance. The 2021 Notes are classified as Green Bonds in alignment with the International Capital Markets Association’s Green Bond Principles (2021).

We also have $3.0 million of other subordinated debt that has a 30-year term (matures on April 7, 2033), has no principal amortization and is guaranteed by us. As of December 31, 2025 and 2024, the other subordinated debt paid interest at the rate of SOFR plus 3.3%, which resets on a quarterly basis.

Our subordinated debt requires us to comply with specific covenants related to capitalization adequacy, regulatory enforcement actions, nonperforming asset metrics, changes in key executive positions, and material changes in ownership. Additionally, in the event of default, our subordinated debt contains certain restrictions and limitations on dividend payments and our ability to repurchase our common stock. We were in compliance with all relevant covenants as of December 31, 2025.

The following table provides information on subordinated debt as of December 31, 2025 and 2024:

December 31,
(dollars in thousands) 2025 2024

2016 Fixed Rate Notes, 7.00% $	— $	17,000

2016 Fixed to Floating Notes, 9.56% — 7,000

2019 Notes, due in 2029 (1) 25,000 25,000

2021 Notes, due in 2032, 4.00% 125,000 125,000

Other subordinated debt, due in 2033 (2) 3,000 3,000

Less: debt issuance costs and discounts (1,997) (2,474)

Total subordinated debt $	151,003 $	174,526

(1)Borrowings bore interest at an effective rate of 8.18% and 8.89% as of December 31, 2025 and 2024, respectively.

(2)Borrowings bore interest at an effective rate of 7.47% and 8.22% as of December 31, 2025 and 2024, respectively.

We use subordinated debt as a supplemental source of funding to support balance sheet growth, liquidity management, and funding diversification. We evaluate the use of wholesale funding sources based on cost, maturity structure, and overall liquidity needs. Increased reliance on borrowings may result in higher interest expense and could impact net interest margin, particularly in a rising interest rate environment. Management seeks to balance the use of wholesale funding with deposit growth and other liquidity sources to maintain an appropriate funding profile.

Other Borrowed Funds

On January 1, 2019, we entered into an Advances and Security Agreement with the FHLB of Atlanta (the “Advances and Security Agreement”) , of which we are a member. Under the Advances and Security Agreement, borrowings from the FHLB must be secured with eligible collateral approved by the FHLB. As of December 31, 2025, there was $5.9 million of stated potential borrowing capacity available based on $8.8 million of loans pledged as collateral under the Advances and Security Agreement. There were no borrowings outstanding under the Advances and Security Agreement as of December 31, 2025.

As of December 31, 2024, there was $920.4 million of stated potential borrowing capacity available based on $960.0 million of loans and investment securities pledged as collateral under the Advances and Security Agreement. As of December 31, 2024, there was approximately $700.0 million of borrowings outstanding under the Advances and Security Agreement at a floating interest rate of 4.44%.

We may also borrow funds through the Federal Reserve Bank’s discount window. These borrowings are secured by qualifying loans and investment securities with a balance of $3.9 billion and $2.5 billion as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, we had approximately $3.5 billion and $1.8 billion, respectively, in borrowing capacity available under these arrangement with no outstanding balance as of December 31, 2025 or 2024.

We maintain unsecured Fed Funds facilities with three other financial institutions in the aggregate amount of $90.0 million. As of December 31, 2025 and 2024, there were no borrowings outstanding under these facilities. We periodically borrow on the Fed Funds facilities in order to test the borrowing availability.

Liquidity and Capital Resources

Liquidity