SEC Filing Document

Company: Forbright, Inc.
Ticker: 
CIK: 1925062
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2026-04-08
Accession Number: 0001628279-26-000459
Exchange: 
SIC Code: 6022
SIC Description: State Commercial Banks
URL: https://www.sec.gov/Archives/edgar/data/1925062/000162827926000459/filename1.htm

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$ 50,059 $ — $ 1,390,681 Commercial agency mortgage-backed — 36,577 — 36,577 Residential agency mortgage-backed — 16,171 — 16,171 Municipal bonds — 8,292 — 8,292 Other — 14,282 5,465 19,747 Total investment securities available-for-sale 1,340,622 125,381 5,465 1,471,468 Loans held-for-sale at fair value — — 108,575 108,575 Loans held for investment at fair value — — 7,081 7,081 Total assets $ 1,340,622 $ 125,381 $ 121,121 $ 1,587,124 Liabilities Total liabilities $ — $ — $ — $ — The following tables present a reconciliation of the assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2025 and 2024: December 31, 2025 Additions Sales Pay-downs/ Maturities/ Calls Transfers Realized and Unrealized Gain/(Loss) included in: (in thousands) Balance as of December 31, 2024 Earnings Other Comprehensive Loss Balance as of December 31, 2025 Assets

Investment securities available-for-sale - Other $	5,465 $	— $	— $	— $	— $	— $	10 $	5,475
Loans held-for-sale at fair value 108,575 19,033 (20,648) (47,051) 85 2,257 — 62,251
Loans held for investment at fair value 7,081 — — (2,305) (85) (46) — 4,645
Total Level 3 assets $	121,121 $	19,033 $	(20,648) $	(49,356) $	— $	2,211 $	10 $	72,371
Liabilities
Total Level 3 liabilities $	— $	— $	— $	— $	— $	— $	— $	—

December 31, 2024

Additions Sales Pay-downs/ Maturities/ Calls Transfers Realized and Unrealized Gain/(Loss) included in:

(in thousands) Balance as of December 31, 2023 Earnings Other Comprehensive Loss Balance as of December 31, 2024
Assets

Investment securities available-for-sale - Other $	5,632 $	— $	— $	— $	— $	— $	(167) $	5,465
Loans held-for-sale at fair value 172,296 — (37,243) (40,321) 8,338 5,505 — 108,575
Loans held for investment at fair value 26,947 — — (11,088) (8,338) (440) — 7,081
Total Level 3 assets $	204,875 $	— $	(37,243) $	(51,409) $	— $	5,065 $	(167) $	121,121
Liabilities
Total Level 3 liabilities $	— $	— $	— $	— $	— $	— $	— $	—

See Note 4 – Loans for more information regarding realized and unrealized gains and losses on loans. Unrealized losses on investment securities available-for-sale are included in Net change in unrealized gain on investments available-for-sale in the Consolidated Statements of Comprehensive 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