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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Standard Adopted in 2025 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires the disclosure of disaggregated information about an entity’s income tax rate reconciliation as well as income taxes paid and income tax expense. The Company adopted the standard on January 1, 2025, on a prospective basis. The adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Pending Adoption In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses, which requires the disaggregated disclosure of certain income statement categories. The amendments are effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The amendments should be applied either prospectively to financial statements issued for reporting periods after the effective date, or retrospectively to any or

all prior periods presented in the financial statements. The Company is in the process of evaluating the impact of this pronouncement, but does not anticipate it having a material impact on its disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the rules for capitalizing internal-use software. The amendments are effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments can be applied using a prospective approach, a retrospective approach, or a modified approach that bases the adoption of the amendments on the completion status of the software project as of the adoption date. The Company is in the process of evaluating the impact of this pronouncement.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments-Credit Losses (Topic 326): Purchased Loans, which provides targeted improvements to the accounting for purchased loans, including clarification on the recognition and measurement of credit losses for acquired financial assets. The amendments are effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The amendments should be applied prospectively to loans acquired after the initial adoption date. The Company is in the process of evaluating the impact of this pronouncement.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material, if any, impact on the Company’s consolidated financial statements.

NOTE 2 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Regulation D of the Federal Reserve Act requires the Company to maintain reserve balances with the Federal Reserve Bank based principally on the type and amount of the Company’s deposits, however, in March 2020, the Federal Reserve Board took action to reduce the reserve requirement percentage to zero for all balances. Balances maintained with the Federal Reserve Bank are included in Interest-bearing deposits with banks in the Consolidated Balance Sheets.

The following schedule presents the composition of the Company’s cash, cash equivalents and restricted cash as of March 31, 2026 and December 31, 2025:

(in thousands) March 31, 2026 December 31, 2025
Cash, due from banks and restricted cash:
Cash and due from banks $	22,976 $	16,040
Restricted cash 2,304 2,201
Total cash, due from banks and restricted cash 25,280 18,241
Interest-bearing deposits with banks:
Interest-bearing deposits with the Federal Reserve Bank 803,991 601,555
Interest-bearing deposits with other banks 36,865 28,919
Total interest-bearing deposits with banks 840,856 630,474
Total cash, cash equivalents and restricted cash $	866,136 $	648,715

NOTE 3 – INVESTMENT SECURITIES

Investment Securities Available-For-Sale

Investment securities available-for-sale as of March 31, 2026 and December 31, 2025, consisted of the following securities:

March 31, 2026
(in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value
U.S. Treasury and government agencies $	774,865 $	1,729 $	(141) $	— $	776,453

Commercial agency mortgage-backed 177,463 639 (1,881) — 176,221

Residential agency mortgage-backed 266,044 336 (2,279) — 264,101
Municipal bonds 9,483 37 (1,022) — 8,498

Other 10,958 — (632) — 10,326
Total investment securities available-for-sale $	1,238,813 $	2,741 $	(5,955) $	— $	1,235,599
December 31, 2025
(in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value
U.S. Treasury and government agencies $	953,981 $	4,366 $	— $	— $	958,347

Commercial agency mortgage-backed 135,588 1,004 (522) — 136,070

Residential agency mortgage-backed 138,262 1,077 (262) — 139,077
Municipal bonds 9,485 46 (896) — 8,635

Other 13,496 — (738) — 12,758
Total investment securities available-for-sale $	1,250,812 $	6,493 $	(2,418) $	— $	1,254,887

The tables above exclude accrued interest receivables of $7.7 million and $13.4 million as of March 31, 2026 and December 31, 2025, respectively.

Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. The amortized cost and fair value of investment securities available-for-sale as of March 31, 2026 and December 31, 2025, by contractual maturity are presented in the following table:

March 31, 2026 December 31, 2025
(in thousands) Amortized Cost Fair Value Amortized Cost Fair Value
U.S. Treasury and government agencies:
One year or less $	518,645 $	519,561 $	520,293 $	521,605
One to five years 256,220 256,892 433,688 436,742
Five to ten years — — — —
After ten years — — — —

Commercial agency mortgage-backed:
One year or less — — — —
One to five years 18,799 19,118 18,794 19,261
Five to ten years 13,379 13,539 13,396 13,612
After ten years 145,285 143,564 103,398 103,197

Residential agency mortgage-backed:
One year or less — — — —
One to five years 89 87 109 107
Five to ten years — — — —
After ten years 265,955 264,014 138,153 138,970
Municipal bonds:
One year or less — — — —
One to five years 3,075 2,970 2,081 2,096
Five to ten years — — 994 894
After ten years 6,408 5,528 6,410 5,645

Other:
One year or less — — — —
One to five years — — — —
Five to ten years 5,000 4,587 5,000 4,537
After ten years 5,958 5,739 8,496 8,221

During the three months ended March 31, 2026, the Company sold no investment securities available-for-sale. During the three months ended March 31, 2025, the Company sold thirteen investment securities available-for-sale with an aggregate cost basis of $1.2 billion and sales proceeds of $1.2 billion. The Company realized gross gains of $1.1 million and no gross losses on the sales. There were no transfers of investment securities from available-for-sale to held-to-maturity during the three months ended March 31, 2026 or 2025.

As of March 31, 2026 and December 31, 2025, the Company had no pledged available-for-sale securities to secure FHLB advances. There were no outstanding FHLB advances as of March 31, 2026 and December 31, 2025.

See Note 10 – Borrowed Funds for more information on the outstanding FHLB advances.

As of March 31, 2026 and December 31, 2025, there were no holdings of investment securities available-for-sale of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

Information pertaining to investment securities available-for-sale with gross unrealized losses as of March 31, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are presented in the following tables:

March 31, 2026
12 Months or Less 12 Months or More Total
(in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses
U.S. Treasury and government agencies $	100,680 $	(141) $	— $	— $	100,680 $	(141)

Commercial agency mortgage-backed 114,661 (1,675) 4,452 (206) 119,113 (1,881)

Residential agency mortgage-backed 211,832 (2,184) 684 (95) 212,516 (2,279)
Municipal bonds 1,909 (82) 5,481 (940) 7,390 (1,022)

Other — — 10,295 (632) 10,295 (632)
Total $	429,082 $	(4,082) $	20,912 $	(1,873) $	449,994 $	(5,955)
December 31, 2025
12 Months or Less 12 Months or More Total
(in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses
Commercial agency mortgage-backed 59,754 (237) 8,901 (285) 68,655 (522)
Residential agency mortgage-backed 49,759 (170) 719 (92) 50,478 (262)
Municipal bonds 1,978 (13) 5,541 (883) 7,519 (896)

Other 93 — 12,666 (738) 12,759 (738)
Total $	111,584 $	(420) $	27,827 $	(1,998) $	139,411 $	(2,418)

The Company individually evaluates its investment securities available-for-sale for credit losses. As of March 31, 2026 and December 31, 2025, the Company determined no portion of the unrealized losses on its investment securities available-for-sale was due to credit factors. Unrealized losses on investment securities available-for-sale due to factors other than credit are largely due to the nature of the investments. Therefore, no allowance for credit losses was recorded as of March 31, 2026 or December 31, 2025. Additionally, the Company has the intent and ability to hold its investment securities available-for-sale for a period of time sufficient to allow for any anticipated recovery.

Investment Securities Held-to-Maturity