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

Chunk 111 of 124
Word Count: 1454
Character Count: 10138

Document Content:

$ 1,803,848 $ — $ 1,803,848 $ — Other deposits 3,765,494 3,765,494 3,765,494 — — Subordinated debt, net 174,526 154,307 — 154,307 — Other borrowings 700,000 700,000 700,000 — — NOTE 22 – PARENT COMPANY FINANCIAL STATEMENTS Financial statements for the Parent as of and for the years ended December 31, 2025 and 2024: Balance Sheets (in thousands, except share and per share amounts) December 31, 2025 December 31, 2024 ASSETS Cash, due from banks and restricted cash $ — $ 71,414 Interest-bearing deposits with banks 24,017 742 Cash, cash equivalents and restricted cash 24,017 72,156 Loans held for investment, at amortized cost 1,555 15,415 Allowance for credit losses - loans — (144) Net loans held for investment, at amortized cost 1,555 15,271 Deferred tax asset, net — 3,607 Accrued interest receivable — 100 Investment in subsidiaries 923,060 812,495 Other assets 29,311 21,167 Total assets $ 977,943 $ 924,796 LIABILITIES

Subordinated debt, net $	151,003 $	174,526

Deferred tax liability, net 1,841 —
Other liabilities 2,656 28,316
Total liabilities 155,500 202,842
STOCKHOLDERS’ EQUITY

Preferred stock, $0.001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding — —

Common stock, $0.001 par value per share; 103,200,000 shares authorized; 40,680,611 and 40,243,916 shares issued and outstanding, respectively 41 40
Additional paid-in capital 490,550 481,455
Retained earnings 328,828 240,902
Accumulated other comprehensive income/(loss) 3,024 (443)
Total stockholders’ equity 822,443 721,954

Total liabilities and stockholders’ equity $	977,943 $	924,796

Statements of Income

(in thousands) December 31, 2025 December 31, 2024
INTEREST INCOME
Interest income $	1,369 $	1,736
Interest expense 8,822 9,029
Net interest expense (7,453) (7,293)
Recovery of credit losses (144) (76)
Net interest expense after recovery of credit losses (7,309) (7,217)
NON-INTEREST INCOME AND EXPENSE
Other (loss)/income, net (91) 10
Other expense 5,495 6,563
Total non-interest expense (5,586) (6,553)
Loss before income tax expense/(benefit) and equity in undistributed income of subsidiary (12,895) (13,770)
Income tax expense/(benefit) 89 (2,202)
Loss before undistributed income of subsidiary (12,984) (11,568)
Equity in undistributed income of subsidiary 100,910 54,934
Net income $	87,926 $	43,366

Statements of Cash Flows

(in thousands) December 31, 2025 December 31, 2024
OPERATING ACTIVITIES
Net income $	87,926 $	43,366
Adjustments to reconcile net income to net cash used in operating activities
Equity in undistributed income of subsidiary (100,910) (54,934)
Recovery of credit losses (144) (76)

Deferred income taxes, net 5,448 (564)
Stock-based compensation 2,557 3,588
Net change in assets and liabilities:
Accrued interest receivable 100 75
Other assets (5,095) (10,823)
Other liabilities (25,185) 18,432
Net cash used in operating activities (35,303) (936)
INVESTING ACTIVITIES
Net decrease in loans held for investment, at amortized cost 13,872 3,736
Other (3,063) (2,839)
Net cash provided by investing activities 10,809 897
FINANCING ACTIVITIES

Repayments of subordinated debt (24,000) —
Proceeds from exercise of stock options under employee stock plans 1,170 705
Shares withheld for tax withholding and exercise of stock options and restricted shares (815) (751)
Net cash used in financing activities (23,645) (46)
Net decrease in cash, cash equivalents and restricted cash (48,139) (85)
Beginning cash, cash equivalents and restricted cash 72,156 72,241
Ending cash, cash equivalents and restricted cash $	24,017 $	72,156

FORBRIGHT, INC. AND SUBSIDIARIES

Table of Contents

Section Page

Consolidated Financial Statements (Unaudited)

Consolidated Balance Sheets F-60

Consolidated Statements of Income F-61

Consolidated Statements of Comprehensive Income F-62

Consolidated Statements of Changes in Stockholders’ Equity F-63

Consolidated Statements of Cash Flows F-64

Notes to Consolidated Financial Statements F-66

FORBRIGHT, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(dollars in thousands, except per share amounts) March 31, 2026 December 31, 2025
(Unaudited)
ASSETS
Cash, due from banks and restricted cash $	25,280 $	18,241
Interest-bearing deposits with banks 840,856 630,474
Cash, cash equivalents and restricted cash 866,136 648,715
Investment securities available-for-sale, at fair value 1,235,599 1,254,887

Investment securities held-to-maturity, at amortized cost, net of allowance for credit losses - investment securities of $110, respectively 48,834 48,834
Loans held-for-sale 407,594 379,662
Loans held for investment, at fair value 4,555 4,645
Loans held for investment, at amortized cost 5,376,537 5,222,234

Allowance for credit losses - loans (52,794) (52,986)
Net loans held for investment, at amortized cost 5,323,743 5,169,248

Other earning assets, net 50,690 55,928
Deferred tax asset, net 152,963 153,314
Accrued interest receivable 45,369 55,155
Goodwill and other intangible assets, net 31,402 31,685
Other assets 66,175 87,233

Total assets $	8,233,060 $	7,889,306
LIABILITIES
Non-interest-bearing deposits $	473,153 $	372,444
Interest-bearing deposits 6,665,055 6,405,471
Total deposits 7,138,208 6,777,915
Subordinated debt, net 151,092 151,003
Other liabilities 112,565 137,945
Total liabilities 7,401,865 7,066,863

Off-balance sheet commitments (Note 13)
STOCKHOLDERS’ EQUITY

Preferred stock, $0.001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding — —

Common stock, $0.001 par value per share; 103,200,000 shares authorized:

Voting common stock, 19,605,006 and 19,438,060 shares issued and outstanding, respectively 20 20

Non-voting common stock, 21,242,551 shares issued and outstanding, respectively 21 21
Additional paid-in capital 493,074 490,550
Retained earnings 340,460 328,828
Accumulated other comprehensive (loss)/income (2,380) 3,024
Total stockholders’ equity 831,195 822,443

Total liabilities and stockholders’ equity $	8,233,060 $	7,889,306

FORBRIGHT, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

For the Three Months Ended March 31,

(dollars in thousands, except per share amounts) 2026 2025
INTEREST INCOME
Loans held for investment $	93,164 $	86,158
Loans held-for-sale 8,194 9,438
Deposits with banks 7,582 7,329
Interest on investment securities 14,099 16,999
Interest and dividends on other earning assets 716 972
Total interest income 123,755 120,896
INTEREST EXPENSE
Deposits 62,295 56,486

Subordinated debt, net 1,902 2,501
Other borrowings — 849
Total interest expense 64,197 59,836
Net interest income 59,558 61,060
Provision for credit losses 3,473 8,459
Net interest income after provision for credit losses 56,085 52,601
NON-INTEREST INCOME
Servicing income 7,087 —
Investment advisory fees 3,193 4,316
Fee income on loans 2,003 1,441
(Losses)/gains on sales of loans and investment securities, net (34) 1,826
Unrealized (losses)/gains on loans and financing receivables, net (1,335) 1,863
Other non-interest income 4,670 4,609
Total non-interest income 15,584 14,055
NON-INTEREST EXPENSE
Compensation and benefits 31,642 30,102
Information technology 7,540 6,011
Professional fees 7,823 3,742
Loan administration and servicing 4,125 1,667
Advertising and marketing 2,304 3,319
FDIC insurance 902 2,662
Other non-interest expense 4,121 4,157
Total non-interest expense 58,457 51,660
Income before income taxes 13,212 14,996
Income tax expense 1,580 3,869
Net income $	11,632 $	11,127

Basic earnings per voting and non-voting common share $	0.29 $	0.28

Diluted earnings per voting and non-voting common share $	0.27 $	0.27
Weighted-average shares used to compute earnings per voting common share:
Basic 19,063,817 18,986,447
Diluted 21,188,692 20,273,878
Weighted-average shares used to compute earnings per non-voting common share, basic and diluted 21,242,551 21,242,551

FORBRIGHT, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Unaudited)

For the Three Months Ended March 31,
(in thousands) 2026 2025
Net income $	11,632 $	11,127
Other comprehensive income:
Net change in unrealized (loss)/gain on investment securities available-for-sale (7,289) 2,959
Related income tax effect 1,885 (747)
Reclassification of gain on investment securities available-for-sale to income — (1,194)
Related income tax effect — 301
Total other comprehensive (loss)/income, net (5,404) 1,319
Total comprehensive income $	6,228 $	12,446

FORBRIGHT, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income/(loss) Total
(dollars in thousands) Shares Amount

Balance as of December 31, 2025 40,680,611 $	41 $	490,550 $	328,828 $	3,024 $	822,443
Net income — — — 11,632 — 11,632
Other comprehensive loss, net of tax — — — — (5,404) (5,404)
Total other comprehensive income 6,228
Stock-based compensation 181,860 — 2,824 — — 2,824
Shares withheld for tax withholding on vesting of restricted shares (14,914) — (300) — — (300)

Balance as of March 31, 2026 40,847,557 $	41 $	493,074 $	340,460 $	(2,380) $	831,195

Balance as of December 31, 2024 40,243,916 $	40 $	481,455 $	240,902 $	(443) $	721,954
Net income — — — 11,127 — 11,127
Other comprehensive income, net of tax — — — — 1,319 1,319
Total other comprehensive income 12,446
Exercise of stock options 40,000 — 372 — — 372
Stock-based compensation — — 2,081 — — 2,081
Shares withheld for tax withholding and exercise of stock options and vesting of restricted shares (27,836) — (494) — — (494)

Balance as of March 31, 2025 40,256,080 $	40 $	483,414 $	252,029 $	876 $	736,359

FORBRIGHT, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

For the Three Months Ended March 31,
(in thousands) 2026 2025
OPERATING ACTIVITIES
Net income $	11,632 $	11,127
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and intangible asset amortization 2,162 2,089
Provision for credit losses 3,473 8,459

Accretion of net discounts on investment securities, net (1,273) (7,688)