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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asset-secured energy project loans and small business loans and commercial solar loans purchased through fintech platforms. Of primary concern in commercial lending is the borrower’s creditworthiness and ability to successfully generate cash flow from their business to service the debt. •Consumer - These loans consist primarily of loans made to individuals for personal, solar, family, and residential real estate purposes (including closed end mortgages and home equity lines of credit), with the majority of the portfolio comprised of loans purchased through fintech lender platforms. The vast majority of our consumer loans were purchased or originated before 2024 and a significant portion of the portfolio was sold during 2024. Outside of loans purchased under forward flow purchase agreements, the remaining consumer and residential real estate purpose loans represents less than 1% of the total loan portfolio as of December 31, 2025. We no longer originate residential real estate loans to consumers.

Our loan portfolio consists primarily of commercial loans to small and medium-sized, privately owned businesses in a variety of industries and markets including on a national scale and across multiple lending strategies. As of December 31, 2025, the single largest industry concentration in the Company’s loan portfolio was healthcare. We do not believe that it is reasonably possible that loss events could occur in the near term to cause any concentrations to result in a severe impact to our results of operations or liquidity. We do not have any concentrations involving loan product terms, loans with negative amortization schedules, significant payment increases, or high loan-to-value ratios. Additionally, due to the national operating footprint of our borrowers, we believe that we do not have a significant geographic concentration of credit exposure.

Our healthcare finance loan portfolio represented approximately 31% of our total loan portfolio as of December 31, 2025. This portfolio is diversified through a broad range of facility types, such as skilled nursing, assisted living, memory care, and behavioral health.

Our lender finance loan portfolio represented approximately 19% of our total loan portfolio as of December 31, 2025. This portfolio is diversified across different collateral types, such as consumer finance, small business, and real estate.

Our real estate finance loan portfolio represented approximately 18% of our total loan portfolio as of December 31, 2025. This portfolio is diversified across different collateral types, such as hospitality, multifamily, and office.

Our fund finance loan portfolio represented approximately 14% of our total loan portfolio as of December 31, 2025. This portfolio is diversified across different collateral types, such as specialty finance, private credit, and private equity.

Our corporate finance loan portfolio represented approximately 12% of our total loan portfolio as of December 31, 2025. This portfolio is diversified across different collateral types, such as companies in the manufacturing, business services, and healthcare industries as well as infrastructure projects.

Total loans were $5.6 billion as of December 31, 2025, an increase of $1.3 billion, or approximately 31%, compared with $4.3 billion as of December 31, 2024. Loans as of December 31, 2025 and December 31, 2024, included $379.7 million and $316.5 million of loans held for sale, respectively. As of December 31, 2025 and 2024, total loans were 82.7% and 77.0% of deposits, respectively, and 71.1% and 59.1% of total assets, respectively.

The following table presents loans held for investment at amortized cost, by loan type, as of December 31, 2025 and 2024:

December 31,
2025 2024 Change
(in thousands) Amount % of total loans Amount % of total loans $ %

Commercial Real Estate $	2,528,996 48.4	% $	1,730,883 43.7	% $	798,113 46.1	%

Commercial and Industrial 2,475,549 47.4	% 1,986,457 50.1	% 489,092 24.6	%
Consumer 217,689 4.2	% 246,633 6.2	% (28,944) (11.7)	%
Total loans held for investment at amortized cost $	5,222,234 100.0	% $	3,963,973 100.0	% $	1,258,261 31.7	%

As of December 31, 2025, total loans held for investment at amortized cost were $5.2 billion, an increase of $1.3 billion, or 31.7%, compared to $4.0 billion as of December 31, 2024, primarily due to a $798.1 million increase in CRE loans, with net loan originations in healthcare finance and real estate finance. Commercial and industrial loans also increased by $489.1 million, with net loan originations in fund finance and lender finance. Loan growth during 2025 was driven by a strategic focus on deploying excess levels of liquidity.

The contractual maturity ranges of total loans held for investment in our loan portfolio and the amount of such loans with fixed interest rates and floating rates in each maturity range as of December 31, 2025, are summarized in the following table. Contractual maturities are based on contractual amounts outstanding and do not include deferred fees and costs or purchase discounts.

One Year Through Through Through After
(in thousands) or Less Five Years Ten Years Fifteen Years Fifteen Years Total
Variable rate loans:

Commercial Real Estate $	651,129 $	1,751,862 $	8,537 $	— $	— $	2,411,528

Commercial and Industrial 448,331 1,919,264 2,986 — — 2,370,581
Consumer — 455 1,273 4,732 14,339 20,799
Total variable rate loans $	1,099,460 $	3,671,581 $	12,796 $	4,732 $	14,339 $	4,802,908
Fixed rate loans:

Commercial Real Estate $	94,191 $	32,451 $	1,453 $	— $	— $	128,095

Commercial and Industrial 1,860 73,381 25,867 1,692 12,772 115,572
Consumer 3 692 3,104 13,224 213,313 230,336
Total fixed rate loans $	96,054 $	106,524 $	30,424 $	14,916 $	226,085 $	474,003
Total loans held for investment $	1,195,514 $	3,778,105 $	43,220 $	19,648 $	240,424 $	5,276,911

ACL - Loans

We estimate an ACL - loans for our loan portfolio held for investment at amortized cost which represents management’s expected credit losses over the expected contractual life of its loans. The estimate is based on both quantitative and qualitative components; each of which is subject to uncertainty.

The quantitative component, including the ACL on individually assessed loans, considers historical and recent loss performance, current portfolio composition, portfolio- and/or loan-specific asset quality data, and actual and forecasted economic conditions. The quantitative estimate is subject to inherent uncertainty given potential differences between actual economic conditions and projected economic conditions including United States macroeconomic indicators like the unemployment rate, home prices, and CRE prices. Variances between actual and projected economic indicators during the reasonable and supportable period could create differences between the ACL and actual credit losses incurred over the life of the loans. The economic environment during the reasonable and supportable period is scenario-weighted and utilizes scenario forecasts from a provider of macroeconomic scenario forecasts that are commonly used within the industry. Additionally, beyond the reasonable and supportable period, economic conditions and credit losses could vary from long-term historical averages. In addition to differences between forecasted economic conditions and actual economic conditions, the quantitative estimate assumes historical loss performance and credit quality metrics inform future expected credit losses. While historical correlations are a helpful starting point for modeling future expected losses, historically observed correlations can change and idiosyncratic events for borrowers can lead to credit losses that were not properly captured by the quantitative modeling.

The qualitative component of the ACL attempts to address the inherent uncertainty in the quantitative modeling and considers quantitative data where possible. The qualitative considerations align with the Interagency Policy Statement on ACL and consider input from an internal management committee. While an experienced and highly-informed committee provides input on qualitative factors, qualitative factors are inherently judgmental and subject to uncertainty.

The quantitative estimate component is sensitive to portfolio composition, changes in the forecasted economic variables, historical loss data, credit quality metrics including risk ratings, and changes in the contractual lives of loans. Qualitative estimates are sensitive to perceived risk in the economy not fully captured in the economic

scenarios as well as factors deemed to potentially cause future loss performance to differ from historically observed performance that is not fully captured in the quantitative model.

The quantitative and qualitative components are subject to frequent independent review and challenge. While management estimates the ACL on its loan portfolio based on available information, the ACL may be inadequate to cover future losses given the uncertainty in the quantitative and qualitative components.

The following table provides detail activity in the ACL - loans held for investment carried at amortized cost for the years ended December 31, 2025 and 2024. Allocation of a portion of the ACL - loans to one category of loans does not preclude its availability to absorb losses in other categories:

As of and for the years ended December 31,

(dollars in thousands) 2025 2024

Average loans held for investment outstanding, at amortized cost $	4,569,708 $	3,665,462

Total loans held for investment outstanding, at amortized cost at end of period $	5,222,234 $	3,963,973

ACL - loans:
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:

Commercial Real Estate — (16,495)