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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either prospectively to financial statements issued for reporting periods after the effective date, or retrospectively to any or all prior periods presented in the financial statements. The Company is in the process of evaluating the impact of this pronouncement. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material, if any, impact on the Company’s consolidated financial statements. NOTE 2 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH Regulation D of the Federal Reserve Act requires the Company to maintain reserve balances with the Federal Reserve Bank based principally on the type and amount of the Company’s deposits, however, in March 2020, the Federal Reserve Board took action to reduce the reserve requirement percentage to zero for all balances. Balances maintained with the Federal Reserve Bank are included in Interest-bearing deposits with banks in the Consolidated Balance Sheet.

The following schedule presents the composition of the Company’s cash, cash equivalents and restricted cash of December 31, 2024:

(in thousands) December 31, 2024
Cash, due from banks and restricted cash:
Cash and due from banks $	26,230
Restricted cash 1,969
Total cash, due from banks and restricted cash 28,199
Interest-bearing deposits with banks:
Interest-bearing deposits with the Federal Reserve Bank 1,132,335
Interest-bearing deposits with other banks 19,448
Total interest-bearing deposits with banks 1,151,783
Total cash, cash equivalents and restricted cash $	1,179,982

NOTE 3 – INVESTMENT SECURITIES

Investment Securities Available-For-Sale

Investment securities available-for-sale as of December 31, 2024, consisted of the following securities:

December 31, 2024
(in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value
U.S. Treasury and government agencies $	1,388,715 $	2,429 $	(463) $	— $	1,390,681
Mortgage-backed and asset-backed 58,161 313 (984) — 57,490
Municipal bonds 9,493 33 (1,234) — 8,292
Corporate bonds 10,035 21 (516) — 9,540
CPACE 5,660 — (195) — 5,465
Total investment securities available-for-sale $	1,472,064 $	2,796 $	(3,392) $	— $	1,471,468

The table above excludes accrued interest receivable of $4.9 million as of December 31, 2024.

Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. The amortized cost and fair value of investment securities available-for-sale as of December 31, 2024, by contractual maturity are presented in the following table:

December 31, 2024
(in thousands) Amortized Cost Fair Value
U.S. Treasury and government agencies:
One year or less $	1,388,715 $	1,390,681
One to five years — —
Five to ten years — —
After ten years — —
Mortgage-backed and asset-backed:
One year or less — —
One to five years 17,689 17,764
Five to ten years 16,352 16,283
After ten years 24,120 23,443
Municipal bonds:
One year or less — —
One to five years 2,082 2,056
Five to ten years 995 842
After ten years 6,416 5,394
Corporate bonds:
One year or less — —
One to five years 5,035 5,056
Five to ten years 5,000 4,484
After ten years — —
CPACE:
One year or less — —
One to five years — —
Five to ten years — —
After ten years 5,660 5,465

During the year ended December 31, 2024, the Company sold fourteen investment securities available-for-sale with an aggregate cost basis of $801.7 million and sales proceeds of $801.9 million. The Company realized gross gains and losses of $293 thousand and $57 thousand, respectively, on the sales. There were no transfers of investment securities from available-for-sale to held-to-maturity during the year ended December 31, 2024.

As of December 31, 2024, the Company pledged $950.0 million of available-for-sale U.S. Treasury and government agency securities with an aggregate amortized cost and fair value of $941.1 million and $942.4 million, respectively, to secure FHLB advances. There were outstanding FHLB advances of $700.0 million as of December 31, 2024, related to these pledged assets.

See Note 10 – Borrowed Funds for more information on the outstanding FHLB advances.

As of December 31, 2024, there were no holdings of investment securities available-for-sale of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

Information pertaining to investment securities available-for-sale with gross unrealized losses as of December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are presented in the following table:

December 31, 2024
12 Months or Less 12 Months or More Total
(in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses
U.S. Treasury and government agencies $	494,497 $	(463) $	— $	— $	494,497 $	(463)
Mortgage-backed and asset-backed 32,563 (762) 7,808 (222) 40,371 (984)
Municipal bonds 1,929 (61) 5,259 (1,173) 7,188 (1,234)
Corporate bonds — — 4,484 (516) 4,484 (516)
CPACE 3,088 (99) 2,377 (96) 5,465 (195)
Total $	532,077 $	(1,385) $	19,928 $	(2,007) $	552,005 $	(3,392)

The Company individually evaluates its investment securities available-for-sale for credit losses. As of December 31, 2024, the Company determined no portion of the unrealized losses on its investment securities available-for-sale was due to credit factors. Unrealized losses on investment securities available-for-sale due to factors other than credit are largely due to the nature of the investments. Therefore, no allowance for credit losses was recorded as of December 31, 2024. Additionally, the Company has the intent and ability to hold its investment securities available-for-sale for a period of time sufficient to allow for any anticipated recovery. 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 investment securities available-for-sale for the year ended December 31, 2024:

December 31, 2024
(in thousands) Corporate Bonds Total
Balance at beginning of period $	516 $	516
Recovery of credit losses (516) (516)
Balance at end of period $	— $	—

Investment Securities Held-to-Maturity

Investment securities held-to-maturity as of December 31, 2024, consisted of the following securities:

December 31, 2024
(in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Municipal bonds $	31,690 $	3,994 $	— $	35,684
CPACE 20,996 496 (3,424) 18,068
Total investment securities held-to-maturity $	52,686 $	4,490 $	(3,424) $	53,752
Allowance for credit losses (161)
Total investment securities held-to-maturity, net of allowance for credit losses $	52,525

The table above excludes accrued interest receivable of $168 thousand as of December 31, 2024.

Expected maturities of investment securities held-to-maturity may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. The amortized cost and fair value of

investment securities held-to-maturity as of December 31, 2024, by contractual maturity, are presented in the following table:

December 31, 2024
(in thousands) Amortized Cost Fair Value
Municipal bonds:
One year or less $	— $	—
One to five years 31,690 35,684
Five to ten years — —
After ten years — —
CPACE:
One year or less — —
One to five years — —
Five to ten years — —
After ten years 20,996 18,068
Total $	52,686 $	53,752

As of December 31, 2024, there were no holdings of investment securities held-to-maturity of any one issuer in an amount greater than 10% of stockholders’ equity.

There were no sales of investment securities held-to-maturity or transfers of investment securities available-for-sale to investment securities held-to-maturity during the year ended December 31, 2024.

Information pertaining to investment securities held-to-maturity with gross unrealized losses as of December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are presented in the following table:

December 31, 2024
12 Months or Less 12 Months of More Total
(in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses
CPACE $	752 $	(248) $	15,794 $	(3,176) $	16,546 $	(3,424)
Total $	752 $	(248) $	15,794 $	(3,176) $	16,546 $	(3,424)

The Company collectively evaluates its investment securities held-to-maturity for credit losses. As of December 31, 2024, the Company recorded an allowance for credit losses on its investment securities held-to-maturity. 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 investment securities held-to-maturity for the year ended December 31, 2024:

December 31, 2024
(in thousands) Municipal bonds CPACE Total
Balance at beginning of period $	155 $	55 $	210
Recovery of credit losses (46) (3) (49)
Balance at end of period $	109 $	52 $	161

Equity Investments

The Company holds equity investments for various business purposes. As of December 31, 2024, the Company had $44.8 million of equity investments, which are included with Other assets in the Consolidated Balance Sheet. As