SEC Filing Document

Company: Forbright, Inc.
Ticker: 
CIK: 1925062
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2026-04-08
Accession Number: 0001628279-26-000459
Exchange: 
SIC Code: 6022
SIC Description: State Commercial Banks
URL: https://www.sec.gov/Archives/edgar/data/1925062/000162827926000459/filename1.htm

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metrics in “Non-GAAP Financial Measures.” NON-GAAP FINANCIAL MEASURES This prospectus contains “non-GAAP financial measures” within the meaning of Item 10(e) of Regulation S-K. Non-GAAP financial measures are financial measures that are not presented in accordance with GAAP. We use these non-GAAP financial measures in the internal evaluation of our performance and management of our business as well as to explain our results of operations to stockholders and the wider investment community. The following non-GAAP financial measures appear in this prospectus: •Tangible common equity - We calculate tangible common equity by deducting goodwill and other intangible assets from stockholder’s equity. •Tangible common equity per common share - We calculate tangible common equity per common share by dividing tangible common equity, as defined above, by our average common shares outstanding for the period, excluding the dilutive effect of outstanding stock options, and including the effect of outstanding shares from restricted stock awards.

•Return on average tangible common equity - We calculate return on average tangible common equity by dividing net income for the period less intangible asset amortization on an after-tax basis, by average tangible common equity over the same period. Adjusted net income, used for the calculation of return on average tangible common equity, is calculated by deducting the tax effected amount of intangible asset amortization from Net Income.

•Non-core gains/(losses) on sales of loans and investment securities, net - We calculate non-core gains/(losses) on sales of loans and investment securities, net by deducting gains from sales of loans to Alliance Partners from gains/(losses) on sales of loans and investment securities, net, as reported on the Consolidated Statements of Income.

•Core and non-core non-interest income - Core non-interest income equals total non-interest income less (a) non-core gains/(losses) on sales of loan and investment securities, net, (b) unrealized gains on loans and financing receivables, net, (c) charge-offs on loans carried at fair value and (d) other income. Non-core non-interest income equals total non-interest income less core non-interest income.

•Adjusted total revenue - We calculate adjusted total revenue by deducting non-core non-interest income from total revenue.

Our management believes that these non-GAAP financial measures and the information they provide are useful to investors because these measures allow investors to view our performance in the same manner our management evaluates performance. Although we believe these non-GAAP financial measures are useful in evaluating our performance, these non-GAAP financial measures should not be considered in isolation or as a substitution for the most directly comparable or other financial measures presented in this prospectus summary under GAAP. Additionally, the manner in which we calculate these non-GAAP financial measures may be different from how other companies financial measures with similar names.

The following tables provide a reconciliation of the above non-GAAP financial measures to their most directly comparable financial measure calculated in accordance with GAAP.

Non-GAAP Financial Measures Reconciliations

As of and for the Year Ended

(dollars in thousands, except per share data) December 31, 2025 December 31, 2024

Tangible common equity

Stockholders’ equity (GAAP) $	822,443 $	721,954

Less:

Goodwill 18,519 18,519

Other intangible assets 13,166 14,528

As of and for the Year Ended

(dollars in thousands, except per share data) December 31, 2025 December 31, 2024

Tangible common equity (non-GAAP) $	790,758 $	688,907

Weighted-average total basic common shares 40,253,815 40,213,908

Stockholders’ equity per weighted-average total basic common share (GAAP) $	20.43 $	17.95

Tangible common equity per weighted-average total basic common share (non-GAAP) $	19.64 $	17.13

Return on average tangible common equity

Average stockholders equity (GAAP) $	769,876 $	690,283
Less:

Average goodwill 18,519 18,519

Average other intangible assets 13,897 15,237

Average tangible common equity (non-GAAP) $	737,460 $	656,527

Net income (GAAP) $	87,926 $	43,366

Add:

Intangible asset amortization, net of tax 1,009 1,018

Adjusted net income (non-GAAP) $	88,935 $	44,384

Return on average stockholders’ equity (GAAP) 11.42	% 6.28	%

Return on average tangible common equity (non-GAAP) 12.06	% 6.76	%

Non-core gains/(losses) on sales of loans and investment securities, net

Gains/(losses) on sales of loans and investment securities, net (GAAP) $	12,579 $	(11,563)

Less:

Gains on sales of loans by Alliance Partners 2,026 3,246

Non-core gains/(losses) on sales of loans and investment securities, net (non-GAAP) $	10,553 $	(14,809)

Core and non-core non-interest income

Non-interest income (GAAP) $	70,776 $	23,113

Less:

Non-core gains/(losses) on sales of loans and investment securities, net (non-GAAP) 10,553 (14,809)

Unrealized gains on loans and financing receivables, net 6,574 3,012

Charge-offs on loans carried at fair value — (3,330)

Other (included in other non-interest income) 139 (311)

Core non-interest income (non-GAAP) $	53,510 $	38,551

Non-core non-interest income (non-GAAP) $	17,266 $	(15,438)

Adjusted Total Revenue

Net interest income $	263,016 $	229,556

Non-interest income 70,776 23,113

Total Revenue (GAAP) $	333,792 $	252,669

Less:

Non-core non-interest income (non-GAAP) 17,266 (15,438)

Adjusted total revenue (non-GAAP) $	316,526 $	268,107

Non-interest income to total revenue (GAAP) 21.2	% 9.1	%

Core non-interest income to adjusted total revenue (non-GAAP) 16.9	% 14.4	%

RISK FACTORS

Investing in our Class A common stock involves a high degree of risk. You should consider and read carefully all of the risks and uncertainties described below, as well as other information included in this prospectus, including our consolidated financial statements and related notes and results of operations appearing elsewhere in this prospectus, before making an investment decision with respect to the Class A common stock offered hereby. The risks described below are not the only ones we face. The occurrence of any of the following risks or additional risks and uncertainties not presently known to us or that we currently believe to be immaterial could materially and adversely affect our business, financial conditions or results of operations. In such case, the trading price of our Class A common stock could decline, and you may lose some or all of your original investment.

Risks Related to Our Operations

Our future success is dependent on our ability to compete effectively in a highly competitive industry.

We compete for attracting deposits, making loans and conducting other financing initiatives. In addition to our many competitors in the banking sector, our principal non-bank competitors are private credit funds, credit unions, and savings and loan associations, including large national financial institutions. We also compete with fintech companies, consumer financial companies, and other non-bank providers of financial services. Many of our competitors are larger than us, have more resources, greater brand recognition, and more extensive and established footprints than we do and may be able to attract customers and consumers more effectively than we can. Because of their scale, many of these competitors can be more aggressive than we can on loan and deposit pricing, and may better afford and make broader use of media advertising, support services and technology than we do. Also, many of our non-bank competitors have fewer regulatory constraints and may have lower cost structures. We compete with these other financial institutions both in attracting deposits, making loans and other financing initiatives. We expect competition to continue to increase as a result of legislative, regulatory and technological changes, the continuing trend of consolidation in the financial services industry and the emergence of alternative providers of traditional banking products and services. Our profitability in large part depends upon our continued ability to compete successfully with traditional and new financial services providers, some of which maintain a physical presence and others of which maintain only a virtual presence. An increase in competition could require us to increase the rates we pay on deposits and/or lower the rates that we offer on loans, which could reduce our profitability.

The process of eliminating banks as intermediaries, known as “disintermediation,” could result in the loss of fee income, as well as the loss of customer deposits and the related income generated from those deposits. Consumers can maintain funds that would have historically been held as bank deposits in brokerage accounts or mutual funds. Consumers can also complete transactions such as paying bills and/or transferring funds directly without the assistance of banks. In addition, the emergence, adoption and evolution of new technologies that do not require intermediation, including distributed ledgers such as digital assets and blockchains, as well as advances in robotic process automation and AI, could significantly affect the competition for financial services. For example, growth in cryptocurrency and DeFi could reduce traditional banking deposits and income streams, challenging our ability to attract and retain consumers. A substantial shift of consumer deposits to these alternative products could adversely affect our liquidity position, funding costs, and overall financial stability. Regulatory uncertainty regarding cryptocurrency and DeFi could further complicate our strategic decisions, increase compliance costs, and potentially expose us to reputational and operational risks.