SEC Filing Document

Company: Forbright, Inc.
Ticker: 
CIK: 1925062
Filing Type: DRS
Document Type: DRS
Date Filed: 2026-02-13
Accession Number: 0001628279-26-000183
Exchange: 
SIC Code: 6022
SIC Description: State Commercial Banks
URL: https://www.sec.gov/Archives/edgar/data/1925062/000162827926000183/filename1.htm

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years % % After ten years % % Municipal bonds: One year or less $ % $ — % One to five years % % Five to ten years % % After ten years % % Corporate Bonds: One year or less $ % $ — % One to five years % % Five to ten years % % After ten years % % CPACE: One year or less $ % $ — % One to five years % % Five to ten years % % After ten years % % Total investment securities $ % $ — % The average yield was % and % on our available-for-sale and held-to-maturity investment securities as of December 31, 2025. The majority of our portfolio will mature within . The following table summarizes the carrying value by classification of securities as of the dates shown: As of December 31, 2025 2024 Change

(dollars in thousands) Amount (1) % of total securities Amount (1) % of total securities $ %
Available-for-sale securities:
U.S. Treasury and government agencies $ % $	1,390,681 91.2	% $ %
Mortgage-backed and asset-backed % 57,490 3.8	% %
Municipal bonds % 8,292 0.5	% %
Corporate bonds % 9,540 0.6	% %
CPACE % 5,465 0.4	% %
Total investment securities available-for-sale $ % $	1,471,468 96.5	% %
Held-to-maturity securities:
Municipal bonds $ % $	31,690 2.1	% %
CPACE % 20,996 1.4	% %
Total investment securities held-to-maturity $ % $	52,686 3.5	% %
Total investment securities $ % $	1,524,154 100.0	% $ %

(1)Available for sale investment securities are reported at fair value and held to maturity securities are reported at amortized cost.

ACL - Investment Securities

For investment securities other than CPACE exposures, the ACL - investment securities are subject to uncertainty primarily due to the assumed relationship between historical loss observations and future loss expectations. Historical obligor and credit rating loss history may be more different in the future than in the past and credit ratings of obligors may change over time.

CPACE exposures are subject to an ACL - investment securities, however, we have never experienced a credit loss on these investment securities. As such, a qualitative ACL - investment securities is estimated based on perceived potential risk in the asset class which is generally lower than our loan portfolio. Uncertainty with the estimate exists given the lack of observable loss data in our investment portfolio for these assets and in the industry.

See Note 1, “Organization and Summary of Significant Accounting Policies,” to our consolidated financial statements and the notes thereto included elsewhere in this prospectus for further discussion of CPACE exposures.

The following table presents an analysis of the ACL on held-to-maturity investment securities as of and for the years ended December 31, 2025 and 2024:

As of and for the years ended December 31,

(dollars in thousands) 2025 2024
Held-to-maturity:
Average held-to-maturity investment securities outstanding $ $	53,136
Total held-to-maturity investment securities outstanding at end of period $ $	52,686
ACL - investment securities:
Balance at beginning of period $ $	210
Recovery of credit losses on investment securities (49)
Balance at end of period $ $	161
Ratio of allowance to total held-to-maturity investment securities at period end % 0.31	%
Ratio of net charge-offs to average held-to-maturity investment securities % —	%

As of December 31, 2025, the ACL - held-to-maturity investment securities totaled $     , or      % of investment securities held-to-maturity. As of December 31, 2024, the allowance totaled $161 thousand or 0.31% of investment securities held-to-maturity. The ACL - investment securities held-to-maturity as a percentage of investment securities held-to-maturity       by  basis points as of December 31, 2025 compared to December 31, 2024.

The following table presents an analysis of the ACL on available-for-sale investment securities as of and for the years ended December 31, 2025 and 2024:

As of and for the years ended December 31,

(dollars in thousands) 2025 2024
Available-for-sale:
Average available-for-sale investment securities outstanding $ $	1,351,950
Total available-for-sale investment securities outstanding at end of period $ $	1,471,468
ACL - investment securities:
Balance at beginning of period $ $	516
Recovery of credit losses on investment securities (516)
Balance at end of period $ $	—
Ratio of allowance to total available-for-sale investment securities at period end % —	%
Ratio of net charge-offs to average available-for-sale investment securities % —	%

The following table presents the allocation of the ACL on held-to-maturity investment securities by investment type:

December 31,
(dollars in thousands) Amount % of total held-to-maturity securities Amount % of total held-to-maturity securities
Corporate bonds $ % $	109 67.7	%
CPACE % 52 32.3	%
Total $ % $	161 100.0	%

There was no ACL on available-for-sale investment securities as of December 31, 2025 and 2024.

Financing Receivables

Our financing receivables are comprised of CPACE-funded projects, which were categorized as financing receivables, based on the contract structure requirements of the municipality where the project is located. At the time of financing, CPACE financing receivables are classified as either held-for-investment at amortized cost or held-for-sale at lower of cost or fair value.

As of December 31, 2025, the carrying amount of financing receivables totaled $ million, a of $  million or      % compared with $43.2 million as of December 31, 2024. As of December 31, 2025, financing receivables represented      % of total assets compared to 0.6% of total assets as of December 31, 2024.

The following tables summarize our investment in financing receivables as of December 31, 2025 and 2024:

As of and for the years ended December 31,

(dollars in thousands) 2025 2024
Held-for-investment:
Average held-for-investment financing receivables outstanding $ $	29,579
Total held-for-investment financing receivables outstanding at end of period $ $	29,406
ACL - held-for-investment financing receivables:
Balance at beginning of period $ $	75
Recovery of credit losses on financing receivables (1)
Balance at end of period $ $	74
Ratio of allowance to total held-for-investment financing receivables at period end % 0.25	%
Ratio of net charge-offs to average held-for-investment financing receivables % —	%

CPACE exposures are subject to an ACL - financing receivables, however, we have never experienced a credit loss on these assets. As such, a qualitative ACL - financing receivables is estimated based on perceived potential risk

in the asset class which is generally lower than our loan portfolio. Uncertainty with the estimate exists given the lack of observable loss data in our investment portfolio for these assets and in the industry.

As of and for the years ended December 31,
(in thousands) 2025 2024
Held-for-sale:
Average held-for-sale financing receivables outstanding $ $	13,275
Total held-for-sale financing receivables outstanding at end of period $ $	13,835

As of December 31, 2025, all of our financing receivables had contractual maturity dates of greater than ten years with a weighted-average yield of      %. None of our financing receivables were placed on non-accrual status nor deemed non-performing assets as of December 31, 2025 or 2024.

See Note 1, “Organization and Summary of Significant Accounting Policies,” to our consolidated financial statements and the notes thereto included elsewhere in this prospectus for further discussion of CPACE exposures.

Deposits

Our lending and investing activities are primarily funded by deposits. We offer a variety of deposit accounts having a wide range of interest rates and terms including demand, savings, money market and time accounts. We rely primarily on competitive pricing policies and customer service to attract and retain these deposits. We primarily source our deposits through our digital deposit platform underpinned by a modern core banking system that leverages advanced technology to provide a robust, scalable, and API-driven architecture that supports efficient operations and differentiated customer experience. We believe that digital deposits serve as our growth engine, providing scalable access to a vast national market beyond the reach of a legacy branch network, which symmetrically align with our lending capacity as consumer preferences shift to digital.

Deposits represent our primary source of funding and are an important component of our financial condition. Changes in deposit balances and mix are influenced by customer behavior, pricing strategies, interest rate movements, and competitive conditions. During periods of rising interest rates, customers may shift balances from non-interest-bearing deposits to interest-bearing or time deposit products, which can increase funding costs. We evaluate the stability, cost, and composition of deposits in managing liquidity and interest rate risk. Future deposit trends may affect our funding mix and could increase reliance on wholesale funding sources if deposit growth does not keep pace with asset growth.

The following table summarizes our deposit balances as of December 31, 2025 and 2024: