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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balance‑sheet capacity to support larger commitments, creating a scaled, mutually beneficial credit ecosystem. FHA/HUD Lending We originate loans eligible for refinancing into government‑guaranteed HUD products, retaining servicing responsibilities post‑takeout and reducing long-term balance sheet exposure while generating fees throughout the credit lifecycle. This reduces long‑term balance‑sheet exposure while generating fees throughout the credit lifecycle. The FHA/HUD franchise focuses on healthcare and multifamily real estate and benefits from deep specialization and decades of industry experience. Solar Services The Solar Services business provides sourcing, servicing and asset‑administration capabilities for residential solar loan portfolios owned by financial institutions and banks. We earn recurring fees through payment management, compliance, borrower engagement, and asset‑performance monitoring without assuming fixed‑rate credit exposure. Other Fee Income We also earn additional non-interest income from traditional banking services, such as loan fees, deposit fees, and other recurring revenue streams embedded in our lending and servicing infrastructure. Financial Metrics & Performance

Since our capital infusion in 2021, we have grown consolidated assets at a           % CAGR from $1.9 billion as of December 31, 2020 to $            billion as of December 31, 2025, primarily driven by strategic deployment of capital through our middle-market lending strategies. This is evidenced by commercial and commercial real estate loans totaling $                billion, or             % of total loans, as of December 31, 2025, as compared to $0.8 billion, or 63% of total loans, as of December 31, 2020. In order to support this growth, we have grown deposits at a              % CAGR, from $1.4 billion as of December 31, 2020 to $               billion as of December 31, 2025. Our deposit strategies provide nimble, scalable funding that can fuel loan origination and balance-sheet expansion across

all economic cycles. Notably, launched only in May 2024, deposits from our proprietary digital deposit platform were $            billion as of December 31, 2025, and represent                % of total deposit balances.

Additionally, since 2020, we have demonstrated significant growth in both revenue and net income. Net interest income for fiscal year 2025 has grown at a               % CAGR since fiscal year 2020, reflecting both a larger balance sheet and            margins. Non-interest income represented              % of total revenue for fiscal year 2025, as compared to 34.8% for fiscal year 2020, due to the deliberate diversification of revenue into less capital-intensive fee business. Total revenue grew at a              % CAGR from fiscal year 2020 to fiscal year 2025. During the same time period, operating expenses increased in line with business growth, rising from $60 million to $            million, while non-interest expense as a percent of average assets fell from 404 bps to           bps. As a result, net income increased from $12 million for fiscal year 2020 to $                  million for fiscal year 2025, or a             % CAGR, reflecting the strengthening of our revenue base and operating scale.

Our Competitive Strengths and Advantages

We possess a unique combination of competitive strengths that position us to capitalize on our substantial market opportunities and drive outsized growth and risk-adjusted returns.

People and Culture: We have a highly experienced management team, led by our founder John Delaney, who has been able to attract and retain world-class talent with deep industry expertise. In aggregate, our leadership group has on average      years of financial services experience and has created a nimble, entrepreneurial culture that creates a platform for our high-performing teams to thrive.

Business Model: We purpose-built Forbright to uniquely capitalize on structural forces reshaping the U.S. banking sector, while creating a virtuous cycle that we believe improves customer outcomes and delivers durable competitive advantages. We combine the vast, stable funding aspects of a digital bank with a high-growth, high risk-adjusted return middle-market lending franchise and high-margin fee income businesses.

Innovation Mindset: Our innovative, entrepreneurial culture is at the core of our identity. We invest for the future and create differentiated go-to-market strategies, enabling us to seize on market opportunities. Our advanced proprietary technology infrastructure underpins our entire business, enabling us to efficiently scale our operations while providing a differentiated customer experience. We also created a proprietary network of community banks, BancAlliance, for which we source, structure, distribute and manage loans. This drives fee income while supporting larger commitments and maintaining borrower relationships that would otherwise require a more sizable balance sheet.

Taken together, our strengths drive our ability to generate significant growth and returns and allow us to effectively compete against a range of financial institutions.

Primary Competitors & Our Differentiation

Our competitors include traditional regional and community banks, digital banks, private credit funds, financial technology companies and other non-bank lenders. We believe our advantage lies within strong relationships and personalized services, our commitment to technological innovation and brand recognition for our nationally-based lending strategies. We intend to continue to strengthen our product offerings to address the evolving financial landscape and broaden our services through thoughtful evolution of our middle-market lending strategies and the continued expansion of our digital deposit platform.

Highly Attractive National Middle-Market Lending Franchise

Competitors across middle-market lending range from national commercial banks to alternative and private credit asset managers. We believe our deep sector expertise allows us to identify risks and opportunities that generalist commercial competitors miss, resulting in above average credit outcomes and a disproportionate ability to structure solutions that solve problems specific to our middle-market clients.

We believe our industry knowledge makes us experts at assessing collateral value across market cycles in our targeted sectors, leading to a well-diversified loan portfolio at attractive loan to values both portfolio wide and for each credit exposure.

Alternative and private credit is not well suited for the type of collateral intensive strategies that define our middle-market lending approach. We believe that the management fees generated by private credit vehicles do not support the sourcing, due diligence and portfolio management needed for collateral-based lending. Additionally, we typically lend at tighter spreads with a more conservative loan structure than alternative and private credit, providing us a competitive advantage while still maintaining attractive risk-adjusted returns.

Our ability to provide flexible, fast, and sophisticated capital solutions allows us to directly originate loans at premium yields compared to traditional banks that have been long anchored to geographically-bounded, standardized lending models.

In our target markets, we are not just a lender; we are a strategic partner. This role creates self-sustaining and cost-efficient deal flow and high borrower retention.

Scalable Digital Deposit Platform

We compete with both digital and traditional banks for funding and have transformed deposit gathering from a cost center into a competitive advantage. By building and managing our digital deposit platform, we seek to liberate ourselves from the typical bureaucratic limitations and reduce our reliance on the legacy technology commonly utilized by many of our competitors. Our cloud-native technology infrastructure is purposefully designed for flexibility and speed with few administrative constraints, which we believe enables us to launch new products and features more efficiently and expeditiously than those associated with traditional development timelines, as we did with our digital high yield savings product offering.

Our technology infrastructure is intended to provide us with the freedom and flexibility to innovate with fewer constraints. Our digital deposit platform’s bespoke integration layer enables us to plug and play third-party applications with limited friction. Further, our data platform is designed to provide visibility into key aspects of our business, allowing us to utilize tools that proactively detect anomalies and mitigate potentially negative customer impact.

For example, our integration and data layers help facilitate efficient customer acquisition for new products and features and have contributed to compelling customer acquisition costs, which were                bps of new deposits for fiscal year 2025. Additionally, our back-office automation drives efficiency and operating leverage with a marginal cost-to-serve of approximately              basis points of average deposits for fiscal year 2025. Our digital deposit platform is designed to integrate cutting-edge marketing technology tools with a sophisticated data infrastructure to attract, convert and retain consumers and small businesses, offering savings tools and a smooth interface. We believe that this agility has contributed to high customer satisfaction and advanced operational and fraud resiliency. We anticipate that these capabilities will enable us to attract and retain deposit balances at costs below those of our competitors.

Unlike traditional banks, our digital deposit platform is designed to scale without the geographic constraints of a physical footprint, providing us with a significant source of liquidity and abundant funding for our high-growth, high risk-adjusted return middle-market lending franchise.

High‑Margin, Capital-Light Fee Businesses