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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loans held-for-sale as of December 31, 2025 and 2024: December 31, 2025 Loans Held-for-Sale at Fair Value Loans Held-for-Sale at Lower of Cost or Fair Value Total Loans Held-for-Sale (in thousands) Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance Commercial and Industrial $ 62,251 $ 65,281 $ 317,411 $ 321,295 $ 379,662 $ 386,576 Total loans held-for-sale $ 62,251 $ 65,281 $ 317,411 $ 321,295 $ 379,662 $ 386,576 December 31, 2024 Loans Held-for-Sale at Fair Value Loans Held-for-Sale at Lower of Cost or Fair Value Total Loans Held-for-Sale (in thousands) Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance Carrying Amount Unpaid Contractual Balance Commercial and Industrial $ 108,575 $ 116,376 $ 207,909 $ 212,082 $ 316,484 $ 328,458 Total loans held-for-sale $ 108,575 $ 116,376 $ 207,909 $ 212,082 $ 316,484 $ 328,458 Loans Held for Investment at Amortized Cost

Loans held for investment at amortized cost, by loan category, as of December 31, 2025 and 2024, are presented in the following table:

(in thousands) December 31, 2025 December 31, 2024

Commercial Real Estate $	2,528,996 $	1,730,883

Commercial and Industrial 2,475,549 1,986,457
Consumer 217,689 246,633
Total loans held for investment at amortized cost $	5,222,234 $	3,963,973

Total outstanding loans held for investment at amortized cost are net of deferred fees and costs of $54.7 million and $57.9 million as of December 31, 2025 and 2024, respectively.

Total outstanding loans held for investment at amortized cost excludes accrued interest receivable of $32.1 million and $26.7 million as of December 31, 2025 and 2024, respectively.

Loans to Related Parties

From time to time, the Company has loan transactions with some of its officers, directors, and material investors, and their immediate family members and affiliated entities. There were no loans in the ordinary course of business due from related parties as of December 31, 2025 and 2024. See Note 19 – Related Party Transactions for more information.

NOTE 5 – CREDIT QUALITY ASSESSMENT

Allowance for Credit Losses - Loans Held for Investment at Amortized Cost

See Note 1 – Significant Accounting Policies for more information on the Company’s accounting policy for the allowance for credit losses.

The following table summarizes the activity in the allowance for credit losses for loans held for investment at amortized cost for the years ended December 31, 2025 and 2024:

(in thousands) December 31, 2025 December 31, 2024
Balance at beginning of period $	42,294 $	74,745
Provision for credit losses on loans 23,344 10,896
Provision for/(recovery of) credit losses on loan transfers from/to loans held-for-sale 148 (9,548)
Loan charge-offs (15,414) (36,232)
Loan recoveries 2,614 2,433
Net charge-offs (12,800) (33,799)
Balance at end of period $	52,986 $	42,294

Loans held-for-sale and loans held for investment at fair value do not require an allowance because they are carried at fair value and therefore any changes to the cost basis in the loan are recognized in earnings, as unrealized gains or losses in non-interest income, in the period of the change.

The following tables detail activity in the allowance for credit losses for loans held for investment carried at amortized cost, by loan category, for the years ended December 31, 2025 and 2024:

December 31, 2025

(dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total
Allowance for credit losses:
Beginning of period $	12,078 $	19,380 $	10,836 $	42,294
Provision for credit losses - loans 6,418 12,807 4,119 23,344
Provision for credit losses - transfers of loans 144 4 — 148
Loan charge-offs — (7,374) (8,040) (15,414)
Loan recoveries — 1,205 1,409 2,614
Net charge-offs — (6,169) (6,631) (12,800)
End of period $	18,640 $	26,022 $	8,324 $	52,986
Individually evaluated for credit loss $	— $	2,244 $	— $	2,244
Collectively evaluated for credit loss 18,640 23,778 8,324 50,742
Total allowance for credit losses $	18,640 $	26,022 $	8,324 $	52,986
Loans held for investment at amortized cost:
Individually evaluated for credit loss $	96,807 $	20,667 $	2,495 $	119,969
Collectively evaluated for credit loss 2,432,189 2,454,882 215,194 5,102,265
Total loans held for investment at amortized cost $	2,528,996 $	2,475,549 $	217,689 $	5,222,234
Allowance for loans to loan type ratio:
Individually evaluated for credit loss —	% 10.86	% —	% 1.87	%
Collectively evaluated for credit loss 0.77	% 0.97	% 3.87	% 0.99	%
Total loans held for investment at amortized cost 0.74	% 1.05	% 3.82	% 1.01	%

December 31, 2024

(dollars in thousands) Commercial Real Estate Commercial and Industrial Consumer Total
Allowance for credit losses:
Beginning of period $	23,203 $	26,460 $	25,082 $	74,745
Provision for credit losses - loans 5,228 78 5,590 10,896
Recovery of credit losses - transfers of loans (58) (158) (9,332) (9,548)
Loan charge-offs (16,495) (7,359) (12,378) (36,232)
Loan recoveries 200 359 1,874 2,433
Net charge-offs (16,295) (7,000) (10,504) (33,799)
End of period $	12,078 $	19,380 $	10,836 $	42,294
Individually evaluated for credit loss $	— $	922 $	— $	922
Collectively evaluated for credit loss 12,078 18,458 10,836 41,372
Total allowance for credit losses $	12,078 $	19,380 $	10,836 $	42,294
Loans held for investment at amortized cost:
Individually evaluated for credit loss $	83,100 $	67,573 $	1,932 $	152,605
Collectively evaluated for credit loss 1,647,783 1,918,884 244,701 3,811,368
Total loans held for investment at amortized cost $	1,730,883 $	1,986,457 $	246,633 $	3,963,973
Allowance for loans to loan type ratio:
Individually evaluated for credit loss —	% 1.36	% —	% 0.60	%
Collectively evaluated for credit loss 0.73	% 0.96	% 4.43	% 1.09	%
Total loans held for investment at amortized cost 0.70	% 0.98	% 4.39	% 1.07	%

Credit Quality

The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The risk rating system is central to the overall credit risk management discipline and the important first step in effectively monitoring the credit quality of the portfolio. Credit risk ratings are applied individually to those classes of assets that have significant or unique credit characteristics that benefit from a case-by-case evaluation. Groups of assets that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk rated and monitored collectively. These are typically assets to individuals in the classes which comprise the consumer portfolio category.

The following are the definitions of the Company’s credit quality indicators:

•Acceptable Risk (or better) - Assets in all classes that comprise the commercial real estate, commercial and industrial, and consumer portfolio categories that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the asset agreement. Management believes that there is a low likelihood of loss related to those assets that are considered Acceptable Risk or better.

•Higher Risk - Assets in this category may demonstrate weaker credit fundamentals with an above-average chance of resulting in a default combined with a lower risk of loss to create an overall risk profile which requires appropriate monitoring but do not present potential weaknesses or a warrant a lower rating.

•Special Mention - Assets in this category exhibit potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may, at some future date, result in deterioration of the repayment prospects for the asset. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. While potentially weak, the asset is currently marginally acceptable, and no loss of principal or interest is envisioned.

•Substandard - A Substandard asset is inadequately protected by the current sound worth and paying capacity of the borrower or the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loss potential, which exists in the aggregate amount of Substandard assets, does not have to exist in individual assets classified Substandard.

•Doubtful - Assets in this category have all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined.

The Company periodically reviews and, if necessary, updates the credit quality indicator assigned to each of its loans on a case-by-case basis.

Loans Held for Investment at Amortized Cost