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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may also borrow funds through the Federal Reserve Bank’s discount window. These borrowings were secured by qualifying loans and investment securities with a balance of $3.9 billion, $3.9 billion, and $2.5 billion as of March 31, 2026, December 31, 2025, and December 31, 2024, respectively. As of March 31, 2026, December 31, 2025, and December 31, 2024, we had approximately $3.5 billion, $3.5 billion, and $1.8 billion, respectively, in borrowing capacity available under these arrangement with no outstanding balance as of March 31, 2026, December 31, 2025, or December 31, 2024 . We maintain unsecured Fed Funds facilities with three other financial institutions in the aggregate amount of $90.0 million. As of March 31, 2026, December 31, 2025, and December 31, 2024, there were no borrowings outstanding under these facilities. We periodically borrow on the Fed Funds facilities in order to test the borrowing availability. Liquidity and Capital Resources Liquidity

Liquidity involves our ability to raise funds to support asset growth or reduce assets to meet deposit withdrawals and other payment obligations, to maintain reserve requirements and otherwise to operate the business on an ongoing basis and manage unexpected events. Our largest sources of liquidity include deposits, payments and maturities of outstanding loans, sales of loans, and maturities or sales of available-for-sale securities. We believe these sources will be sufficient to meet our liquidity needs over the next twelve months; however, our long-term liquidity position is dependent on our ability to sustain deposit growth and our ability to continue to source digital deposits as our balance sheet continues to grow. While scheduled loan payments and maturing available-for-sale securities are relatively predictable sources of liquidity, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition. We generally hold excess funds as reserve deposits with the Federal Reserve Bank. We use cash generated through online deposits, our largest funding source, business customer deposits, and wholesale funds, to offset the cash utilized in lending and investing activities. Our short-term interest-earning available-for-sale securities are used to provide liquidity for lending and other operational requirements. During the three months ended March 31, 2026 and 2025 and the years ended December 31, 2025 and 2024, our liquidity needs have primarily been met through strong deposit growth, and from loan principal paydowns and interest payments received. Management expects deposits to remain a primary source of liquidity, however, future deposit growth may be affected by changes in interest rates, competitive pressures, or shifts in customer preferences, which could increase our reliance on wholesale funding sources in the future.

The following table illustrates, during the periods presented, the mix of our funding sources and the average assets in which those funds are invested. Average assets totaled $8.0 billion for the three months ended March 31, 2026, compared to $6.8 billion for the three months ended March 31, 2025 and $7.2 billion for the year ended December 31, 2025 compared to $6.6 billion for the year ended December 31, 2024.

Three Months Ended Year Ended
March 31, December 31,
(dollars in thousands) 2026 2025 2025 2024
Sources of funds:
Deposits:
Non-interest-bearing $	372,965 $	239,776 $	287,741 $	271,796
Interest-bearing 6,539,870 5,440,867 5,855,831 5,392,106

Subordinated debt, net 151,034 174,573 162,597 174,319

Other borrowings — 71,119 30,922 51,656
Other liabilities 119,506 84,762 95,890 68,587
Stockholders’ equity 839,162 746,169 769,876 690,283
Total sources of funds $	8,022,537 $	6,757,266 $	7,202,857 $	6,648,747
Uses of funds:

Total loans $	5,615,729 $	4,370,039 $	4,920,518 $	4,023,418

ACL (52,686) (40,461) (46,572) (54,975)

Total investment securities 1,291,428 1,451,219 1,361,317 1,405,086

Interest-bearing deposits with banks 836,173 674,233 662,905 1,020,070

Other earning assets 55,017 58,610 57,252 54,861

Other assets 276,876 243,626 247,437 200,287
Total uses of funds $	8,022,537 $	6,757,266 $	7,202,857 $	6,648,747
Average non-interest-bearing deposits to average deposits 5.40	% 4.22	% 4.68	% 4.80	%
Average loans to average deposits 81.24	% 76.93	% 80.09	% 71.04	%

Our largest source of funds is deposits, and our largest use of funds is loans. Our average deposits were $6.9 billion, an increase of 21.7%, for the three months ended March 31, 2026 compared with the three months ended March 31, 2025. Our average loans were $5.6 billion, an increase of 28.5% for the three months ended March 31, 2026 compared with the three months ended March 31, 2025. Our average deposits were $6.1 billion or an increase of 8.5% for the year ended December 31, 2025 compared with the year ended December 31, 2024. Our average loans were $4.9 billion, or an increase of 22.3% for the year ended December 31, 2025 compared with the year ended December 31, 2024. The increase in loans was larger compared to the increase in deposits which was funded primarily with the use of cash balances of interest-bearing deposits with banks. We hold excess funds in cash with the Federal Reserve Bank until the funds are needed to fund loan growth.

We had a maximum borrowing capacity of $5.8 million and $5.9 million as of March 31, 2026 and December 31, 2025, respectively, through the Advances and Securities Agreement, with no borrowings outstanding as of either date. To borrow through the Advances and Securities Agreement, we are required to pledge sufficient qualifying collateral to the FHLB. As of both March 31, 2026 and December 31, 2025, we pledged eligible 1-4 family first mortgages with a book value of $5.8 million and eligible home equity loans with a book value of $3.0 million to secure borrowings from the FHLB. The total collateral value assigned by the FHLB for these pledged investments and loans was $5.8 million and $5.9 million as of March 31, 2026 and December 31, 2025, respectively.

We also have a maximum borrowing capacity of $3.5 billion through the Federal Reserve Bank’s discount window, and no borrowings outstanding as of both March 31, 2026 and December 31, 2025. To borrow under the Federal Reserve Bank’s discount window, we are required to pledge sufficient collateral consisting of qualifying loans and investment securities to the Federal Reserve Bank. As of March 31, 2026, we pledged CRE loans with a book value of $1.7 billion, commercial and industrial loans with a book value of $1.9 billion, construction loans with a book value of $182.9 million, and multi-family loans with a book value of $88.5 million to facilitate future transactions. As of December 31, 2025, we pledged CRE loans with a book value of $1.7 billion, commercial and industrial loans with a book value of $2.0 billion, construction loans with a book value of $184.0 million, and multi-family loans with a book value of $75.8 million to facilitate future transactions. The total collateral value assigned by the Federal Reserve Bank for these pledged loans was $3.5 billion as of both March 31, 2026 and December 31, 2025.

Our Fed Funds facilities with three other financial institutions have $90.0 million borrowing capacity as of both March 31, 2026 and December 31, 2025, and there were no borrowings outstanding under these facilities. Borrowing under these facilities are not secured by collateral.

Additionally, we may sell investment securities available-for-sale from our portfolio as a source of liquidity, if necessary. As of March 31, 2026 and December 31, 2025, we had investment securities available-for-sale with a fair value of $1.2 billion and $1.3 billion, respectively. Of these balances there are investment securities maturing within the next twelve months with a fair value of $519.6 million and $521.6 million as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, December 31, 2025 and December 31, 2024, a large portion of our portfolio was invested in U.S. Treasury securities. Our securities portfolio had a weighted average life of 3.3 years and 2.5 years as of March 31, 2026 and December 31, 2025, respectively.

As of March 31, 2026 and December 31, 2025, we had outstanding $1.1 billion and $787.0 million, respectively, in commitments to extend credit and $7.2 million and $20.2 million, respectively, in commitments associated with outstanding standby letters of credit. Since commitments associated with letters of credit and commitments to extend credit may expire unused, the total outstanding may not necessarily reflect the actual future cash funding requirements. A significant portion of our outstanding commitments could be drawn upon in periods of economic stress, which could require us to obtain additional funding from deposits or wholesale funding sources.

As of March 31, 2026 and December 31, 2025, we had no identified capital expenditure commitments that we currently expect to have a material impact on liquidity; however, future loan growth, changes in funding costs, or adverse economic conditions could increase our cash requirements.

Off-balance Sheet Arrangements