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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Document Content:

Deposits 243,403 259,779 Subordinated debt, net 8,822 9,029 Other borrowings 1,399 2,791 Total interest expense 253,624 271,599 Net interest income 263,016 229,556 Provision for/(recovery of) credit losses 24,011 (1,688) Net interest income after provision for/(recovery of) credit losses 239,005 231,244 NON-INTEREST INCOME Investment advisory fees 16,190 19,385 Fee income on loans 8,367 9,031 Gains/(losses) on sales of loans and investment securities, net 12,579 (11,563) Unrealized gains on loans and financing receivables, net 6,574 3,012 Charge-offs on loans carried at fair value — (3,330) Other non-interest income 27,066 6,578 Total non-interest income 70,776 23,113 NON-INTEREST EXPENSE Compensation and benefits 127,112 110,356 Information technology 26,918 22,267 Professional fees 15,891 20,809 Loan administration and servicing 8,495 6,153 Advertising and marketing 6,244 9,913 FDIC insurance 5,032 9,967 Other non-interest expense 18,932 20,525 Total non-interest expense 208,624 199,990 Income before income taxes 101,157 54,367 Income tax expense 13,231 11,001 Net income $ 87,926 $ 43,366

Basic earnings per voting and non-voting common share $	2.18 $	1.08

Diluted earnings per voting and non-voting common share $	2.12 $	1.05
Weighted-average shares used to compute earnings per voting common share:
Basic 19,011,264 18,971,357
Diluted 20,171,833 20,001,805
Weighted-average shares used to compute earnings per non-voting common share, basic and diluted 21,242,551 21,242,551

See notes to the consolidated financial statements

FORBRIGHT, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Years Ended December 31,
(in thousands) 2025 2024
Net income $	87,926 $	43,366
Other comprehensive income:
Net change in unrealized gain on investment securities available-for-sale 5,865 2,103
Related income tax effect (1,511) (528)
Reclassification of gain on investment securities available-for-sale to income (1,194) (236)
Related income tax effect 307 59
Total other comprehensive income, net 3,467 1,398
Total comprehensive income $	91,393 $	44,764

See notes to the consolidated financial statements

FORBRIGHT, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity

Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive (loss)/income Total
(dollars in thousands) Shares Amount

Balance as of December 31, 2023 40,217,037 $	40 $	473,890 $	197,536 $	(1,841) $	669,625
Net income — — — 43,366 — 43,366
Other comprehensive income, net of tax — — — — 1,398 1,398
Total other comprehensive income 44,764
Exercise of stock options 63,000 — 705 — — 705
Stock-based compensation 9,000 — 7,611 — — 7,611
Shares withheld for tax withholding and exercise of stock options and restricted shares (45,121) — (751) — — (751)

Balance as of December 31, 2024 40,243,916 $	40 $	481,455 $	240,902 $	(443) $	721,954
Net income — — — 87,926 — 87,926
Other comprehensive income, net of tax — — — — 3,467 3,467
Total other comprehensive income 91,393
Exercise of stock options 100,700 — 1,169 — — 1,169
Stock-based compensation 383,022 1 8,741 — — 8,742
Shares withheld for tax withholding and exercise of stock options and restricted shares (47,027) — (815) — — (815)

Balance as of December 31, 2025 40,680,611 $	41 $	490,550 $	328,828 $	3,024 $	822,443

See notes to the consolidated financial statements

FORBRIGHT, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

Year Ended
(in thousands) December 31, 2025 December 31, 2024
OPERATING ACTIVITIES
Net income $	87,926 $	43,366

Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Depreciation and intangible asset amortization 8,491 6,723

Provision for/(recovery of) credit losses 24,011 (1,688)

Accretion of net discounts on investment securities, net (17,710) (31,134)

Amortization of deferred fees and costs on loans, net (32,941) (18,469)

(Increase)/decrease in loans originated for sale, net (44,793) 90,161

(Gains)/losses on sales of loans and investment securities, net (12,579) 11,563
Stock-based compensation 8,742 7,611
Deferred income taxes 20,947 4,115
Other 329 3,330
Net change in assets and liabilities:
Accrued interest receivable (19,630) 3,492
Other assets 1,768 2,817
Other liabilities (23,015) 1,002

Net cash (used in)/provided by operating activities 1,546 122,889
INVESTING ACTIVITIES

Net (increase)/decrease in loans held for investment, at amortized cost (1,311,351) 1,252
Net decrease in loans held for investment, at fair value 2,305 19,426
Purchase of investment securities available-for-sale (1,659,456) (1,689,349)
Proceeds, maturities, prepayments and calls of securities available-for-sale 1,899,611 1,105,193
Proceeds, maturities, prepayments and calls of securities held-to-maturity 3,742 783

Proceeds from sales of other real estate owned 19,105 —

Proceeds from/(purchase of) Federal Home Loan Bank of Atlanta stock, net 32,952 (31,074)
Other (8,658) (12,379)
Net cash used in investing activities (1,021,750) (606,148)
FINANCING ACTIVITIES

Net increase/(decrease) in deposits 1,212,583 (276,653)
Repayment of subordinated debt (24,000) —
Proceeds from other borrowings 1,180,000 2,205,100
Repayments of other borrowings (1,880,000) (1,555,100)
Proceeds from exercise of stock options under employee stock plans 1,169 705
Shares withheld for tax withholding and exercise of stock options and restricted shares (815) (751)
Net cash provided by financing activities 488,937 373,301
Net decrease in cash, cash equivalents and restricted cash (531,267) (109,958)
Beginning cash, cash equivalents and restricted cash 1,179,982 1,289,940
Ending cash, cash equivalents and restricted cash $	648,715 $	1,179,982

See notes to the consolidated financial statements

FORBRIGHT, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows - (continued)

Year Ended
(in thousands) December 31, 2025 December 31, 2024
Supplemental cash flow disclosures:
Interest payments $	254,292 $	266,306

Income tax payments, net of refunds of $730 and $2,270, respectively $	8,611 $	8,929
Noncash investing activity:

Extinguishment of loans held for investment (at amortized cost) in exchange for non-cash consideration $	68,620 $	—

Loans held for investment (at fair value) transferred to loans held-for-sale $	85 $	—
Loans held for investment (at amortized cost) transferred to loans held-for-sale, net $	— $	11,536
Loans held for investment (at fair value) transferred to loans held-for-sale, net $	— $	8,338
Loans held for investment (at amortized cost) transferred to other real estate owned $	1,665 $	27,355

Financing receivables held-for-sale (at lower of cost or fair value) transferred to financing receivables held for investment (at amortized cost) $	13,830 $	—
Right-of-use assets obtained in exchange for lease liabilities $	— $	697

See notes to the consolidated financial statements

FORBRIGHT, INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Forbright, Inc. (the “Parent”), a Delaware corporation, is a bank holding company that along with its subsidiaries (collectively the “Company”), is headquartered in Chevy Chase, Maryland. Forbright Bank (with its subsidiaries, the “Bank”), a wholly owned subsidiary of the Company, is a Maryland state chartered non-member bank, which serves the needs of individuals, small and medium sized businesses, and professional concerns. Nationwide, the Bank serves deposit and retail banking customers via its digital deposit platform and offers competitive financing and lending services, originating lender finance loans, fund finance loans, healthcare finance loans, real estate loans, working capital facilities, warehouse lines of credit, and term loans.

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), as applicable to financial institutions, and include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The typical condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. A controlling financial interest may also exist in entities through arrangements that do not involve voting interests, such as a variable interest entity (“VIE”), when a reporting entity concludes it is the primary beneficiary of the VIE. The Company has determined that it is not the primary beneficiary of any VIEs. Certain reclassifications have been made to the prior period’s financial statements to conform to the current year presentation.

Emerging Growth Company Status

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as those standards apply to private companies. The Company may elect to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that the Company (1) is no longer an emerging growth company or (2) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

Use of Estimates