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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of March 31, 2026 and December 31, 2025. See Note 18 – Related Party Transactions for more information. NOTE 5 – CREDIT QUALITY ASSESSMENT Allowance for Credit Losses - Loans Held for Investment at Amortized Cost For a description of the Company's accounting policy for the allowance for credit losses, refer to the annual Consolidated Financial Statements included in the Company's Registration Statement on Form S-1. The following table summarizes the activity in the allowance for credit losses for loans held for investment at amortized cost for the three months ended March 31, 2026 and 2025: (in thousands) March 31, 2026 March 31, 2025 Beginning of period $ 52,986 $ 42,294 Provision for credit losses on loans 3,867 8,413 Provision for credit losses on loan transfers from loans held-for-sale 17 68 Loan charge-offs (4,887) (4,433) Loan recoveries 811 526 Net charge-offs (4,076) (3,907) End of period $ 52,794 $ 46,868

Loans held-for-sale and loans held for investment at fair value do not require an allowance because they are carried at fair value and therefore any changes to the cost basis in the loan are recognized in earnings, as unrealized gains or losses in non-interest income, in the period of the change.

The following tables detail activity in the allowance for credit losses for loans held for investment carried at amortized cost, by loan category, for the three months ended March 31, 2026 and 2025:

March 31, 2026

(dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total
Allowance for credit losses:
Beginning of period $	18,639 $	26,023 $	8,324 $	52,986
Provision for credit losses on loans 927 1,783 1,157 3,867
Provision for credit losses on loan transfers from loans held-for-sale — 17 — 17
Loan charge-offs — (2,830) (2,057) (4,887)
Loan recoveries — 542 269 811
Net charge-offs — (2,288) (1,788) (4,076)
End of period $	19,566 $	25,535 $	7,693 $	52,794
Individually evaluated for credit loss $	— $	1,589 $	— $	1,589
Collectively evaluated for credit loss 19,566 23,946 7,693 51,205
Total allowance for credit losses $	19,566 $	25,535 $	7,693 $	52,794
Loans held for investment at amortized cost:
Individually evaluated for credit loss $	150,643 $	17,821 $	2,304 $	170,768
Collectively evaluated for credit loss 2,529,229 2,467,597 208,943 5,205,769
Total loans held for investment at amortized cost $	2,679,872 $	2,485,418 $	211,247 $	5,376,537
Allowance for loans to loan type ratio:
Individually evaluated for credit loss —	% 8.92	% —	% 0.93	%
Collectively evaluated for credit loss 0.77	% 0.97	% 3.68	% 0.98	%
Total loans held for investment at amortized cost 0.73	% 1.03	% 3.64	% 0.98	%

March 31, 2025

(dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total
Allowance for credit losses:
Beginning of period $	12,078 $	19,380 $	10,836 $	42,294
Provision for credit losses on loans 1,679 6,064 670 8,413
Provision for credit losses on loan transfers from loans held-for-sale 62 6 — 68
Loan charge-offs — (3,107) (1,326) (4,433)
Loan recoveries — 210 316 526
Net charge-offs — (2,897) (1,010) (3,907)
End of period $	13,819 $	22,553 $	10,496 $	46,868
Individually evaluated for credit loss $	95 $	1,271 $	— $	1,366
Collectively evaluated for credit loss 13,724 21,282 10,496 45,502
Total allowance for credit losses $	13,819 $	22,553 $	10,496 $	46,868
Loans held for investment at amortized cost:
Individually evaluated for credit loss $	95,138 $	68,890 $	1,900 $	165,928
Collectively evaluated for credit loss 1,667,497 2,065,368 239,249 3,972,114
Total loans held for investment at amortized cost $	1,762,635 $	2,134,258 $	241,149 $	4,138,042
Allowance for loans to loan type ratio:
Individually evaluated for credit loss 0.10	% 1.84	% —	% 0.82	%
Collectively evaluated for credit loss 0.82	% 1.03	% 4.39	% 1.15	%
Total loans held for investment at amortized cost 0.78	% 1.06	% 4.35	% 1.13	%

Credit Quality

The Company uses an internal risk rating system as its primary credit quality indicator, applying ratings on a case-by-case basis for commercial loans and on a collective basis for consumer loans. For a description of the Company's credit quality indicators, refer to the annual Consolidated Financial Statements included in the Company's Registration Statement on Form S-1.

Loans Held for Investment at Amortized Cost

The following tables present by class, credit quality and year of origination, the recorded investment in the Company’s loans held for investment at amortized cost as of and for the three months ended March 31, 2026 and as of and for the year ended December 31, 2025:

March 31, 2026
Loans Held for Investment at Amortized Cost by Year of Origination
(in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Revolving Loans Converted to Term Total
Commercial Real Estate:
Acceptable risk (or better) $	230,457 $	1,159,506 $	282,668 $	56,724 $	205,721 $	287,966 $	978 $	— $	2,224,020
Higher risk 32,825 45,601 54,692 — 124,278 77,274 — — 334,670
Special mention — — — — — — — — —
Substandard — — 47,524 — 46,796 26,862 — — 121,182
Doubtful — — — — — — — — —
Total $	263,282 $	1,205,107 $	384,884 $	56,724 $	376,795 $	392,102 $	978 $	— $	2,679,872
Gross charge-offs $	— $	— $	— $	— $	— $	— $	— $	— $	—
Commercial and Industrial:
Acceptable risk (or better) $	94,245 $	139,018 $	164,492 $	47,739 $	113,691 $	17,126 $	1,786,046 $	29,864 $	2,392,221
Higher risk 147 145 1,762 — 21,432 238 13,440 — 37,164
Special mention — — 59 — — 1 38,289 — 38,349
Substandard — — — 12,515 858 456 853 — 14,682
Doubtful — 1,399 1,603 — — — — — 3,002
Total $	94,392 $	140,562 $	167,916 $	60,254 $	135,981 $	17,821 $	1,838,628 $	29,864 $	2,485,418
Gross charge-offs $	— $	— $	935 $	— $	1,825 $	70 $	— $	— $	2,830
Consumer:
Acceptable risk (or better) $	— $	— $	— $	235 $	57,624 $	138,067 $	5,792 $	— $	201,718
Higher risk — — — — 177 4,545 3,137 — 7,859
Special mention — — — — — — — — —
Substandard — — — — 693 977 — — 1,670
Doubtful — — — — — — — — —
Total $	— $	— $	— $	235 $	58,494 $	143,589 $	8,929 $	— $	211,247
Gross charge-offs $	— $	— $	— $	— $	787 $	1,270 $	— $	— $	2,057
Total loans $	357,674 $	1,345,669 $	552,800 $	117,213 $	571,270 $	553,512 $	1,848,535 $	29,864 $	5,376,537
Total gross charge-offs $	— $	— $	935 $	— $	2,612 $	1,340 $	— $	— $	4,887