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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deemed to potentially cause future loss performance to differ from historically observed performance that is not fully captured in the quantitative model. The quantitative and qualitative components are subject to frequent independent review and challenge. While management estimates the ACL on its loan portfolio based on available information, the ACL may be inadequate to cover future losses given the uncertainty in the quantitative and qualitative components. The following table provides detail activity in the ACL - Loans held for investment carried at amortized cost as of and for the three months ended March 31, 2026 and 2025 and as of and for the years ended December 31, 2025 and 2024. Allocation of a portion of the ACL - Loans to one category of loans does not preclude its availability to absorb losses in other categories: As of and for the Three Months Ended As of and for the Years Ended

(dollars in thousands) March 31, 2026 March 31, 2025 December 31, 2025 December 31, 2024
Average loans held for investment outstanding, at amortized cost $5,209,705 $4,046,508 $	4,569,708 $	3,665,462
Total loans held for investment outstanding, at amortized cost at end of period $5,376,537 $4,138,042 $	5,222,234 $	3,963,973
ACL - Loans:
Beginning of period $	52,986 $	42,294 $	42,294 $	74,745
Provision for credit losses on loans 3,867 8,413 23,344 10,896
Provision for/(recovery of) credit losses on loan transfers from/to loans held-for-sale 17 68 148 (9,548)
Loan charge-offs:
Commercial Real Estate — — — (16,495)
Commercial and Industrial (2,830) (3,107) (7,374) (7,359)
Consumer (2,057) (1,326) (8,040) (12,378)
Total charge-offs (4,887) (4,433) (15,414) (36,232)
Loan recoveries:
Commercial Real Estate — — — 200
Commercial and Industrial 542 210 1,205 359
Consumer 269 316 1,409 1,874
Total recoveries 811 526 2,614 2,433
Net charge-offs (4,076) (3,907) (12,800) (33,799)
End of period $	52,794 $	46,868 $	52,986 $	42,294
Ratio of ACL - Loans to total loans at amortized cost at period end 0.98	% 1.13	% 1.01	% 1.07	%
Ratio of net charge-offs to average total loans at amortized cost (0.32)	% (0.39)	% (0.28)	% (0.92)	%

We maintain an ACL - Loans that represents management’s best estimate of the loan losses in our loan portfolio.

As of March 31, 2026, the ACL - Loans totaled $52.8 million, or 0.98% of total loans held for investment at amortized cost. As of March 31, 2025, the ACL - Loans totaled $46.9 million, or 1.13% of total loans held for investment at amortized cost. The decrease in the allowance for March 31, 2026 compared to December 31, 2025 was primarily due to reductions in loan balances of high loss forward flow loans with higher ACL – Loans to loans held for investment at amortized cost ratios, partially offset by growth in portfolios with lower ACL – Loans to loans held for investment at amortized cost ratios. As of December 31, 2025, the ACL - Loans totaled $53.0 million, or 1.01% of total loans held for investment at amortized cost. As of December 31, 2024, the allowance totaled $42.3 million or 1.07% of total loans held for investment at amortized cost. The increase in the allowance for December 31, 2025 compared to December 31, 2024 was primarily due to an increase in loans held for investment at amortized cost, and an increase in collectively and individually assessed reserves.

The ACL - Loans as a percentage of total loans held for investment at amortized cost decreased by 3 basis points to 0.98% as of March 31, 2026, compared to 1.01% as of December 31, 2025. The decrease from December 31, 2025 to March 31, 2026, was primarily due to continued run-off in loan balances of high loss forward flow loans and an increase in loan balance with lower ACL – Loans to loans held for investment at amortized cost

ratios. The ACL - Loans to total loans held for investment at amortized cost decreased by 6 basis points to 1.01% as of December 31, 2025, compared to 1.07% as of December 31, 2024. The decrease from December 31, 2024 to December 31, 2025, was primarily due to continued run-off in loan balances of high loss forward flow loans offset by an overall increase in loan balances. Economic forecast assumptions reflected in the ACL – Loans estimate were largely consistent as of March 31, 2026, December 31, 2025, and December 31, 2024.

The following tables present activity in the ACL - Loans by loan category, for the three months ended March 31, 2026 and 2025 and for the years ended December 31, 2025 and 2024. Allocation of a portion of the ACL - Loans to one category of loans does not preclude its availability to absorb losses in other categories.

For the Three Months Ended March 31, 2026

(dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total
Total loans outstanding at end of period, at amortized cost $	2,679,872 $	2,485,418 $	211,247 $	5,376,537
ACL - Loans:
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
ACL - Loans to loan type ratio 0.73	% 1.03	% 3.64	% 0.98	%

For the Three Months Ended March 31, 2025
(dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total
Total loans outstanding at end of period, at amortized cost $	1,762,635 $	2,134,258 $	241,149 $	4,138,042
ACL - Loans:
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
ACL - Loans to loan type ratio 0.78	% 1.06	% 4.35	% 1.13	%

For the Year Ended December 31, 2025

(dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total
Total loans outstanding at end of period, at amortized cost $	2,528,996 $	2,475,549 $	217,689 $	5,222,234
ACL - Loans:
Beginning of period $	12,078 $	19,380 $	10,836 $	42,294
Provision for credit losses on loans 6,418 12,807 4,119 23,344
Provision for credit losses on loan transfers from loans held-for-sale 144 4 — 148
Loan charge-offs — (7,374) (8,040) (15,414)
Loan recoveries — 1,205 1,409 2,614
Net charge-offs — (6,169) (6,631) (12,800)
End of period $	18,640 $	26,022 $	8,324 $	52,986
ACL - Loans to loan type ratio 0.74	% 1.05	% 3.82	% 1.01	%

For the Year Ended December 31, 2024

(dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total
Total loans outstanding at end of period, at amortized cost $	1,730,883 $	1,986,457 $	246,633 $	3,963,973
ACL - Loans:
Beginning of period $	23,203 $	26,460 $	25,082 $	74,745

Provision for credit losses on loans 5,228 78 5,590 10,896
Provision for credit losses on loan transfers to loans held-for-sale (58) (158) (9,332) (9,548)
Loan charge-offs (16,495) (7,359) (12,378) (36,232)
Loan recoveries 200 359 1,874 2,433
Net charge-offs (16,295) (7,000) (10,504) (33,799)
End of period $	12,078 $	19,380 $	10,836 $	42,294
ACL - Loans to loan type ratio 0.70	% 0.98	% 4.39	% 1.07	%

The following table shows the allocation of the ACL - Loans by loan type as of March 31, 2026 and 2025 and December 31, 2025 and 2024.

March 31, December 31,

(dollars in thousands) Amount % of Total ACL - Loans Amount % of Total ACL - Loans Amount % of Total ACL - Loans Amount % of Total ACL - Loans
Balance of ACL - Loans:
Commercial Real Estate $	19,566 37.0	% $	13,819 29.5	% $	18,640 35.2	% $	12,078 28.6	%
Commercial and Industrial 25,535 48.4	% 22,553 48.1	% 26,022 49.1	% 19,380 45.8	%
Consumer 7,693 14.6	% 10,496 22.4	% 8,324 15.7	% 10,836 25.6	%
Total ACL - Loans $	52,794 100.0	% $	46,868 100.0	% $	52,986 100.0	% $	42,294 100.0	%

The total ACL - Loans disclosed in the table above is available to absorb losses from any loan category. We believe that the ACL - Loans as of March 31, 2026 and December 31, 2025, is adequate to cover estimated losses in the loan portfolio as of such date. There can be no assurance, however, that our loan portfolio will not sustain losses in future periods, which could be substantial in relation to the size of the allowance as of March 31, 2026 or December 31, 2025.

Non-performing Assets

Non-performing assets consist of non-performing loans, non-performing financing receivables, and OREO.