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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Document Content:

% After ten years 265,955 4.47 % — — % Commercial agency mortgage-backed: One year or less $ — — % $ — — % One to five years 18,799 4.76 % — — % Five to ten years 13,379 4.72 % — — % After ten years 145,285 5.04 % — — % Municipal bonds: One year or less $ — — % $ — — % One to five years 3,075 3.24 % 31,200 9.00 % Five to ten years — — % — — % After ten years 6,408 2.92 % — — % Other: One year or less $ — — % $ — — % One to five years — — % — — % Five to ten years 5,000 3.87 % — — % After ten years 5,958 6.05 % 17,744 5.62 % Total investment securities $ 1,238,813 4.29 % $ 48,944 7.77 %

The following table summarizes the amortized cost and their weighted average yields as of December 31, 2025, by contractual maturities. The contractual maturity of a mortgage-backed security is the date at which the last underlying mortgage matures.

December 31, 2025
Available-for-sale Held-to-maturity

(dollars in thousands) Amortized Cost Yield Amortized Cost Yield

U.S. Treasury and government agencies:
One year or less $	520,293 4.16	% $	— —	%
One to five years 433,688 4.02	% — —	%
Five to ten years — —	% — —	%
After ten years — —	% — —	%

Residential agency mortgage-backed:
One year or less $	— —	% $	— —	%
One to five years 109 1.61	% — —	%
Five to ten years — —	% — —	%
After ten years 138,153 4.75	% — —	%

Commercial agency mortgage-backed:
One year or less $	— —	% $	— —	%
One to five years 18,794 4.77	% — —	%
Five to ten years 13,396 4.73	% — —	%
After ten years 103,398 5.18	% — —	%
Municipal bonds:
One year or less $	— —	% $	— —	%
One to five years 2,081 4.07	% 31,200 9.00	%
Five to ten years 994 1.50	% — —	%
After ten years 6,410 2.92	% — —	%

Other:
One year or less $	— —	% $	— —	%
One to five years — —	% — —	%
Five to ten years 5,000 3.87	% — —	%
After ten years 8,496 6.40	% 17,744 5.62	%
Total investment securities $	1,250,812 4.28	% $	48,944 7.77	%

ACL - Investment Securities

For investment securities other than CPACE exposures, which are included in Other in the table above, the ACL - investment securities is subject to uncertainty primarily due to the assumed relationship between historical loss observations and future loss expectations. Historical obligor and credit rating loss history may differ more in the future than in the past and credit ratings of obligors may change over time.

CPACE exposures are subject to an ACL - investment securities, however, we have never experienced a credit loss on these investment securities. As such, a qualitative ACL - investment securities is estimated based on

perceived potential risk in the asset class which is generally lower than our loan portfolio. Uncertainty with the estimate exists given the lack of observable loss data in our investment portfolio for these assets and in the industry.

See Note 1, “Significant Accounting Policies,” to our consolidated financial statements and the notes thereto included elsewhere in this prospectus for further discussion of CPACE exposures.

The following table presents an analysis of the ACL on held-to-maturity investment securities 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:

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
Held-to-maturity:
Average held-to-maturity investment securities outstanding $	48,944 $	52,689 $	52,376 $	53,136
Total held-to-maturity investment securities outstanding at end of period $	48,944 $	52,689 $	48,944 $	52,686
ACL - investment securities:
Balance at beginning of period $	110 $	161 $	161 $	210
Recovery of credit losses on investment securities — — (51) (49)
Balance at end of period $	110 $	161 $	110 $	161
Ratio of allowance to total held-to-maturity investment securities at period end 0.22	% 0.31	% 0.22	% 0.31	%
Ratio of net charge-offs to average held-to-maturity investment securities —	% —	% —	% —	%

As of March 31, 2026 and December 31, 2025, the ACL - held-to-maturity investment securities totaled $0.1 million, or 0.22% of held-to-maturity investment securities.

As of December 31, 2025, the ACL - held-to-maturity investment securities totaled $0.1 million, or 0.22% of held-to-maturity investment securities, a decrease of 9 basis points compared to the allowance totaled $0.2 million or 0.31% of held-to-maturity investment securities as of December 31, 2024. The decrease from December 31, 2024 to December 31, 2025, in the ACL - held-to-maturity investment securities was due to a lower remaining lifetime probability of default, as well as a decrease in outstanding balance.

The following table presents the allocation of the ACL on held-to-maturity investment securities by investment type:

March 31, 2026 March 31, 2025 December 31, 2025 December 31, 2024

(dollars in thousands) Amount % of Total ACL - Investment Securities Amount % of Total ACL - Investment Securities Amount % of Total ACL - Investment Securities Amount % of Total ACL - Investment Securities
Municipal bonds $	66 60.0	% $	109 67.7	% $	66 60.0	% $	109 67.7	%

Other 44 40.0	% 52 32.3	% 44 40.0	% 52 32.3	%
Total $	110 100.0	% $	161 100.0	% $	110 100.0	% $	161 100.0	%

Financing Receivables

Our financing receivables are comprised of CPACE-funded projects, which were categorized as financing receivables, based on the contract structure requirements of the municipality where the project is located. At the time

of financing, CPACE financing receivables are classified as either held for investment at amortized cost or held-for-sale at lower of cost or fair value.

As of March 31, 2026, the carrying amount of financing receivables totaled $37.2 million, a decrease of $5.7 million, or 13.3%, compared with $42.9 million as of December 31, 2025. As of December 31, 2025, the carrying amount of financing receivables totaled $42.9 million, a decrease of $0.3 million, or 0.8%, compared with $43.2 million as of December 31, 2024. As of March 31, 2026, December 31, 2025, and December 31, 2024 financing receivables represented 0.5%, 0.5%, and 0.6% of total assets, respectively.

The following tables summarize our investment in financing receivables 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:

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
Held for investment:
Average financing receivables held for investment outstanding $	41,820 $	29,406 $	33,364 $	29,579
Total financing receivables held for investment outstanding at end of period $	37,177 $	29,407 $	42,902 $	29,406
ACL - financing receivables held for investment:
Balance at beginning of period $	108 $	74 $	74 $	75
Recovery of credit losses on financing receivables (15) — — (1)
Provision for credit losses - transfer of financing receivables from held-for-sale — — 34 —
Balance at end of period $	93 $	74 $	108 $	74
Ratio of allowance to total financing receivables held for investment at period end 0.25	% 0.25	% 0.25	% 0.25	%
Ratio of net charge-offs to average financing receivables held for investment —	% —	% —	% —	%

CPACE exposures are subject to an ACL - financing receivables, however, we have never experienced a credit loss on these assets. As such, a qualitative ACL - financing receivables is estimated based on perceived potential risk in the asset class which is generally lower than our loan portfolio. Uncertainty with the estimate exists given the lack of observable loss data in our investment portfolio for these assets and in the industry.

As of and for the Three Months Ended As of and for the Years Ended
(in thousands) March 31, 2026 March 31, 2025 December 31, 2025 December 31, 2024
Held-for-sale:
Average financing receivables held-for-sale outstanding $	— $	13,746 $	9,557 $	13,275
Total financing receivables held-for-sale outstanding at end of period $	— $	13,602 $	— $	13,835