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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Income. The following tables present the quantitative inputs used in determining the fair value of the Company’s Level 3 assets measured on a recurring basis as of December 31, 2025 and 2024: (dollars in thousands) Fair value as of December 31, 2025 Valuation Technique Unobservable Input Range (Weighted Average) 1 Investment securities available-for-sale - Other $ 5,475 Discounted Cash Flow Discount Rate 7.5% - 7.6% (7.5%) Loans held-for-sale at fair value $ 58,059 Market Observations Market (Premium)/Discount (1.4)% - 7.6% (2.3%) Loans held-for-sale at fair value 4,192 Discounted Cash Flow Discount for Risk of Non-Payment 10.0% - 40.0% (30.6%) Discount Rate 9.3% - 11.8% (10.0%) Total loans held-for-sale at fair value $ 62,251 Loans held for investment at fair value $ 3,853 Market Observations Market (Premium)/Discount (1.4)% - 7.6% (0.8%) Loans held for investment at fair value 792 Discounted Cash Flow Discount for Risk of Non-Payment 10.0% - 40.0% (28.2%)

Discount Rate 9.3% - 11.8% (10.4%)
Total loans held for investment at fair value $	4,645

(1)Weighted averages are calculated by using the product of the inputs multiplied by the relative fair values of the instruments.

(dollars in thousands) Fair value as of December 31, 2024 Valuation Technique Unobservable Input Range (Weighted Average) 1

Investment securities available-for-sale - Other $	5,465 Discounted Cash Flow Discount Rate 7.3% - 7.8% (7.6%)

Loans held-for-sale at fair value $	107,080 Market Observations Market (Premium)/Discount (1.4)% - 16.9% (2.9%)

Loans held-for-sale at fair value 1,495 Discounted Cash Flow Discount for Risk of Non-Payment 10.0% - 84.3% (52.2%)

Discount Rate 8.9% - 11.8% (11.3%)
Total loans held-for-sale $	108,575

Loans held for investment at fair value $	6,565 Market Observations Market (Premium)/Discount (1.4)% - 16.9% (1.0%)

Loans held for investment at fair value 516 Discounted Cash Flow Discount for Risk of Non-Payment 10.0% - 84.3% (33.4%)

Discount Rate 8.9% - 11.8% (10.7%)
Total loans held for investment at fair value $	7,081

(1)Weighted averages are calculated by using the product of the inputs multiplied by the relative fair values of the instruments.

For the years ended December 31, 2025 and 2024, the Company did not transfer any assets to or from Level 3.

Certain assets are measured at fair value on a nonrecurring basis; that is, not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence

of impairment). Financial assets measured at fair value on a non-recurring basis as of December 31, 2025 and 2024, are presented in the following tables:

December 31, 2025

(in thousands) Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total
Collateral-dependent loans $	— $	— $	49,682 $	49,682
Impaired loans — — 14,017 14,017
Other real estate owned — — 8,729 8,729
Total $	— $	— $	72,428 $	72,428

December 31, 2024

(in thousands) Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total
Collateral-dependent loans $	— $	— $	55,298 $	55,298
Impaired loans — — 1,519 1,519
Other real estate owned — — 25,476 25,476
Total $	— $	— $	82,293 $	82,293

As of December 31, 2025 and 2024, the Company’s investment in collateral-dependent loans included no individual credit loss allowances. As of December 31, 2025 and 2024, the Company’s investment in impaired loans included individual credit loss allowances of $2.2 million and $922 thousand, respectively. As of December 31, 2025 and 2024, the Company’s investment in other real estate owned assets included unrealized fair value adjustment losses of $847 thousand and $2.2 million, respectively, which are recognized in Other non-interest income in the Consolidated Statements of Income.

Collateral-dependent loans are reported at fair value using the fair value of collateral less estimated selling costs. Although appraisals are obtained on collateral dependent loans, the appraised values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation and/or management’s expertise and knowledge of the borrower’s business, and therefore they are classified as Level 3.

Impaired loans are reported at fair value using the present value of expected cash flows. For impairments based on cash flow methodology, the discount rate is based on observable inputs, however the determination of cash flows requires management’s judgment, and therefore they are classified as Level 3.

Other real estate owned assets have been valued using a market approach. The values were determined using market prices or similar real estate assets based on an independent appraisal, and adjusted for estimated selling costs. These estimates require management’s judgment, and therefore they are classified as Level 3.

The Company discloses fair value information, based on the exit price notion, of financial instruments that are not measured at fair value in the financial statements. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists.

Quoted market prices, where available, are shown as estimates of fair values. Because no quoted market prices are available for a significant portion of the Company's financial instruments, the fair value of such instruments have been derived based on the amount and timing of future cash flows and estimated discount rates based on observable inputs (Level 2) or unobservable inputs (Level 3).

Present value techniques used in estimating the fair value of many of the Company's financial instruments are significantly affected by the assumptions used. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate cash settlement of the instrument. Additionally, the accompanying estimates of fair values are only representative of the fair values of the individual financial assets and liabilities and should not be considered an indication of the fair value of the Company. Management utilizes internal models used in asset liability management to determine the fair values disclosed below.

The estimated fair values of the Company’s financial instruments were as follows as of December 31, 2025 and 2024:

December 31, 2025

(in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
Financial assets:
Cash, cash equivalents and restricted cash $	648,715 $	648,715 $	648,715 $	— $	—
Investment securities available-for-sale, at fair value 1,254,887 1,254,887 958,347 291,065 5,475
Investment securities held-to-maturity, at amortized cost 48,834 50,475 — 34,936 15,539
Loans held-for-sale, at fair value 62,251 62,251 — — 62,251
Loans held-for-sale, at lower of cost or fair value 317,411 317,411 — — 317,411
Loans held for investment, at fair value 4,645 4,645 — — 4,645
Loans held for investment, at amortized cost 5,169,248 5,213,899 — — 5,213,899

Other earning assets 55,928 54,023 — — 54,023
Accrued interest receivable 55,155 55,155 55,155 — —
Financial liabilities:
Time deposits $	1,423,136 $	1,431,710 $	— $	1,431,710 $	—
Other deposits 5,354,779 5,354,779 5,354,779 — —

Subordinated debt, net 151,003 146,547 — 146,547 —

December 31, 2024

(in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
Financial assets:
Cash, cash equivalents and restricted cash $	1,179,982 $	1,179,982 $	1,179,982 $	— $	—
Investment securities available-for-sale, at fair value 1,471,468 1,471,468 1,340,622 125,381 5,465
Investment securities held-to-maturity, at amortized cost 52,525 53,752 — 35,684 18,068
Loans held-for-sale, at fair value 108,575 108,575 — — 108,575
Loans held-for-sale, at lower of cost or fair value 207,909 207,909 — — 207,909
Loans held for investment, at fair value 7,081 7,081 — — 7,081
Loans held for investment, at amortized cost 3,921,679 3,924,133 — — 3,924,133

Other earning assets 88,009 86,329 — — 86,329
Accrued interest receivable 35,525 35,525 35,525 — —
Financial liabilities:
Time deposits $	1,799,838 $	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