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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Word Count: 1497
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Document Content:

March 31, 2026, compared to $7.9 billion as of December 31, 2025, and total loans increased to $5.8 billion as of March 31, 2026, compared to $5.6 billion as of December 31, 2025. •Cash balances plus investment securities available-for-sale totaled $2.1 billion as of March 31, 2026, compared to $1.9 billion as of December 31, 2025. •Total deposits increased to $7.1 billion as of March 31, 2026, compared to $6.8 billion as of December 31, 2025. •As of March 31, 2026, the Company’s and Bank’s Tier 1 leverage ratio was 8.92% and 10.19%, respectively, compared to 9.79% and 11.11%, respectively, as of December 31, 2025. •As of March 31, 2026, the Company’s and Bank’s Common Equity Tier 1 ratio was 11.47% and 13.11%, respectively, compared to 12.72% and 14.37%, respectively, as of December 31, 2025. Results of Operations for the Years Ended December 31, 2025 and 2024 Average Balance Sheets

The following table shows the average outstanding balance of each major category of asset, liability and stockholders’ equity, along with the associated interest income or expense and the yield on average earning-asset or rate on interest-bearing liability. The associated yield or cost is calculated by dividing the interest income or interest expense by the corresponding daily average balance over the same period.

Year Ended December 31, 2025 Year Ended December 31, 2024
(dollars in thousands) Average balance Interest income/expense Average yields earned/rates paid Average balance Interest income/expense Average yields earned/rates paid
Assets:
Total loans held for investment $	4,571,214 $	384,944 8.42	% $	3,683,140 $	332,852 9.04	%
Total loans held-for-sale 349,304 38,034 10.89	% 340,278 38,592 11.34	%
Total loans 4,920,518 422,978 8.60	% 4,023,418 371,444 9.23	%
Total investment securities 1,361,317 61,723 4.53	% 1,405,086 71,493 5.09	%
Interest-bearing deposits with banks 662,905 28,601 4.31	% 1,020,070 54,953 5.39	%
Other earnings assets 57,252 3,338 5.83	% 54,861 3,265 5.95	%

Total interest-earning assets 7,001,992 516,640 7.38	% 6,503,435 501,155 7.71	%
ACL (46,572) (54,975)

Other assets 247,437 200,287
Total assets $	7,202,857 $	6,648,747
Liabilities and stockholders’ equity
Interest-bearing demand deposits $	295,772 $	10,909 3.69	% $	525,478 $	19,628 3.74	%
Money market deposits 924,371 36,208 3.92	% 915,122 38,942 4.26	%
Savings deposits 2,945,069 121,669 4.13	% 875,777 42,857 4.89	%
Time deposits 1,690,619 74,617 4.41	% 3,075,729 158,352 5.15	%
Total interest-bearing deposits 5,855,831 243,403 4.16	% 5,392,106 259,779 4.82	%

Subordinated debt, net 162,597 8,822 5.43	% 174,319 9,029 5.18	%
Other borrowings 30,922 1,399 4.52	% 51,656 2,791 5.40	%
Total interest-bearing liabilities 6,049,350 253,624 4.19	% 5,618,081 271,599 4.83	%
Non-interest-bearing demand deposits 287,741 271,796
Other liabilities 95,890 68,587
Total liabilities 6,432,981 5,958,464
Stockholders’ equity 769,876 690,283
Total liabilities and stockholders’ equity $	7,202,857 $	6,648,747
Net interest income and spread $	263,016 3.19	% $	229,556 2.88	%
Net interest margin 3.76	% 3.53	%

Net interest margin for the year ended December 31, 2025 was 3.76%, an increase of 23 basis points compared with 3.53% for the year ended December 31, 2024, primarily related to a positive change in asset mix to increase loans and decrease cash deposits with banks and investment securities, a $13.4 million recognition of the acceleration of amortization of deferred fees on loans, as well as a decrease of 66 basis points in yields on interest-

bearing deposit balances. The 66 basis point decrease in the cost of interest-bearing deposits was driven primarily by a 94 basis point decline in the average Fed Funds rate, with the relative decline reflecting competitive positioning of digital growth savings deposits, timing of fixed rate time deposits maturities, as well as maturing balances of fixed rate institutional sweep deposits in 2025 that were originated during periods of lower interest rates.

Average loans increased for the year ended December 31, 2025, primarily due to originations net of sales, paydowns, and pay-offs in healthcare finance, real estate finance, fund finance, and lender finance. Average deposits increased during the year ended December 31, 2025, primarily related to an increase in growth savings deposits, partially offset by reductions in the level of time deposits related to our efforts to increase digital savings deposit balances.

Return on average total assets was 1.22% for the year ended December 31, 2025, compared to 0.65% for the year ended December 31, 2024. The increase was primarily due to an increase in non-interest income, primarily related to net gains on loans sales and extinguishments, an increase in net interest income, and the recognition of amortization of the deferred credit’s impact on income tax expense, offset partially by an increase in average total assets.

Return on average stockholders’ equity was 11.42% for the year ended December 31, 2025, compared to 6.28% for the year ended December 31, 2024. The increase was primarily due to an increase in non-interest income, primarily related to the recognition of net gains on loan sales and extinguishments, an increase in net interest income, and the recognition of amortization of the deferred credit’s impact on income tax expense, offset partially by an increase in average stockholders’ equity.

Return on average tangible common equity was 12.06% for the year ended December 31, 2025, compared to 6.76% for the year ended December 31, 2024. The increase was due to the factors described above for return on average assets and return on average stockholders’ equity.

Rate Volume Analysis

The following table presents the effects of changes in the average balances of interest-earning assets and interest-bearing liabilities and the corresponding yields and rates on net interest income during the period indicated.

Year Ended December 31, 2025 compared to 2024
Change due to:
(in thousands) Volume Yield/rate Total change
Interest-earning assets:
Loans held for investment $	80,257 $	(28,165) $	52,092
Loans held-for-sale 1,024 (1,582) (558)
Investment securities (2,227) (7,543) (9,770)
Interest-bearing deposits with banks (19,241) (7,111) (26,352)
Other earning assets 142 (69) 73
Total interest-earnings assets $	59,955 $	(44,470) $	15,485
Interest-bearing liabilities:
Interest-bearing demand deposits $	(8,580) $	(139) $	(8,719)
Money market deposits 394 (3,128) (2,734)
Savings deposits 101,262 (22,450) 78,812
Time deposits (71,311) (12,424) (83,735)
Total deposits 21,765 (38,141) (16,376)

Subordinated debt, net (607) 400 (207)
Other borrowings (1,120) (272) (1,392)
Total interest-bearing liabilities $	20,038 $	(38,013) $	(17,975)
Increase/(decrease) in net interest income $	39,917 $	(6,457) $	33,460

Net Interest Income

The following table discloses the components of net interest income for the years ended December 31, 2025 and 2024:

For the Years Ended December 31,
Change
(dollars in thousands) 2025 2024 $ %
Interest income:
Loans held for investment $	384,944 $	332,852 $	52,092 15.7	%
Loans held-for-sale 38,034 38,592 (558) (1.4)	%
Deposits with banks 28,601 54,953 (26,352) (48.0)	%
Interest on investment securities 61,723 71,493 (9,770) (13.7)	%
Interest and dividends on other earning assets 3,338 3,265 73 2.2	%
Total interest income 516,640 501,155 15,485 3.1	%
Interest expense:
Deposits 243,403 259,779 (16,376) (6.3)	%

Subordinated debt, net 8,822 9,029 (207) (2.3)	%
Other borrowings 1,399 2,791 (1,392) (49.9)	%
Total interest expense 253,624 271,599 (17,975) (6.6)	%

Net interest income $	263,016 $	229,556 $	33,460 14.6	%

Net interest income for the year ended December 31, 2025, was $263.0 million compared with $229.6 million for the year ended December 31, 2024, an increase of $33.5 million, or 14.6%, primarily related to an increase in loan balances of $1.3 billion, a $13.4 million recognition of the acceleration of amortization of deferred fees related to loan sales or restructurings, and a decrease of 66 basis points in yields on interest-bearing deposit balances. Those increases were partially offset by lower balances of cash deposits with banks and investment securities, and an overall decrease in yields on earning assets.

Interest Income

Interest income for the year ended December 31, 2025, was $516.6 million compared to $501.2 million for the year ended December 31, 2024, an increase of $15.5 million, or 3.1%, primarily related to a net increase in loan balances and acceleration of amortization of deferred fees related to loan sales and restructurings, offset by a decrease in balances of investment securities and interest-bearing cash balances, and a decrease in yields on interest-earning assets.

Interest Expense

Interest expense for the year ended December 31, 2025, was $253.6 million compared to $271.6 million for the year ended December 31, 2024, a decrease of $18.0 million, or 6.6%, primarily related to a decrease in rates charged on deposit balances and a decrease in time deposit balances, offset by an increase in growth savings balances.

Provision for (recovery of) Credit Losses

The ACL represents an amount which we believe is adequate to absorb the lifetime expected credit losses that may be sustained on assets carried at amortized cost as of the balance sheet date. The provision for credit losses represents the amount of expense charged to current earnings from an increase in the ACL. Conversely, a recovery of credit loss is recorded to earnings when the ACL is reduced. Our provisions for, or recoveries of, credit losses