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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resiliency. We anticipate that these capabilities will enable us to attract and retain deposit balances at costs below those of our competitors. Unlike traditional banks, our digital deposit platform is designed to scale without the geographic constraints of a physical footprint, providing us with a significant source of liquidity and abundant funding for our high-growth, high-risk-adjusted return middle-market lending franchise. High-Margin, Capital-Light Fee Businesses Our fee businesses enhance our balance sheet and risk management capabilities, providing the flexibility to retain assets on our balance sheet or process them to third parties, which allows us to more effectively compete with larger competitors. Further, our fee businesses leverage our credit and sourcing infrastructure, including from services related to a differentiated and proprietary network of community banks, BancAlliance, that allows us to drive fee income while supporting larger loan commitments and maintaining borrower relationships that would otherwise require a more sizable balance sheet.

•Asset Management: We advise third-party capital, including from BancAlliance, which generates management fees. Our strategic advantage versus other asset managers is in our ability to source loans with attractive risk-adjusted returns and leverage our credit and risk infrastructure to provide differentiated value to the community banks in our unique distribution channel, BancAlliance.

•Loan Advisory and Servicing: We utilize our origination, credit and portfolio management expertise, licensure and technological stack to provide services to borrowers such as FHA/HUD processed loans and master servicing capabilities to a growing list of asset owners and investors.

•Other Fee Income: We also generate fees from our Solar Services business as well as via traditional banking services including, loan fees, deposit fees and other recurring revenue streams embedded in our lending and servicing infrastructure.

These fee businesses further enhance balance sheet and risk management providing the flexibility to retain assets on our balance sheet or process them to third parties, which allows us to more effectively compete with larger competitors.

Growth Strategy

We have purpose-built our business model to capitalize on the secular tailwinds behind the rapidly evolving middle market and the migration towards digital-first banking. Since 2021, we have been meaningfully investing in our franchise, including developing an advanced technology architecture, bringing in highly talented senior bankers and establishing a robust, scalable infrastructure. This has led to      % net income growth from fiscal year 2020 to fiscal year 2025. Given these investments, we are poised to accelerate growth and drive meaningful operating leverage, which will lead to continued profitability enhancements.

New Digital Deposit Products

We have experienced considerable growth within our digital deposit platform since launching in May 2024 having successfully grown this funding source to $     billion across       accounts as of December 31, 2025 and we are focused on continuing to deepen our relationships with existing customers. We also plan to replicate our high-yield savings strategy with other products to continue to diversify and expand our funding base. We will continue to refine our deposit strategy as the digital marketplace evolves, supported by the design and capabilities of our technology-enabled platform.

Scaling Existing Strategies

We have a successful track record of hiring and retaining talent having added 35 commercial lenders and portfolio managers since 2021, all of whom are seasoned professionals. The management team has generally known and worked with these business leaders at prior institutions. These lenders have deep relationships and generally are

able to bring their client’s business to Forbright over time, driving attractive loan growth as they integrate with our platform.

We originated $      million of loans during fiscal year 2025 and have grown our loan portfolio at a           % CAGR since December 31, 2020. Our middle-market focus offers abundant opportunities and our trusted lending expertise and targeted focus reinforces our right to win.

Extend Lending Expertise

We also have the ability to grow our lending franchise into complementary middle-market strategies, and are focused on hiring talent to lead such initiatives, while we simultaneously measure targeted expansion with new middle-market lending initiatives, such as premium finance and SBA lending. As specialists in middle-market lending, we expect to identify and launch new strategies to deepen our market penetration.

Selective Pursuit of Strategic Investments and Acquisitions

While we are primarily focused on organic growth, our leadership team has a track-record of pursuing investments and acquisitions with complementary and accretive strategic value. Access to the public capital markets will enhance our positioning as an acquirer in mergers and acquisitions and expand our target universe.

Risk Management and Credit Discipline

Risk management is at the center of everything we do, and is embedded into the governance structure of our organization. Risk management spans asset-liability management, enterprise risk management, interest rate risk management and credit risk management and enables us to manage our balance sheet prudently through varied business cycles and market environments.

Balance Sheet Strategy

As a regulated, FDIC-insured institution, we benefit from the inherent trust, robust regulatory framework, and balance sheet durability that are hallmarks of a traditional bank. We attract a loyal, digitally-engaged customer base by offering a superior value proposition on deposits and related services, which in turn funds a highly profitable, expertly managed suite of national lending strategies and fee-generating businesses. No lending strategy comprises more than      % of our granular loan portfolio as of December 31, 2025 and we manage our commercial real estate exposure proactively. We also maintain a margin of safety as it relates to our regulatory capital levels. This foundation provides stability, enabling us to attract and retain deposits and confidently deploy capital in our lending strategies and support our well-defined, high-growth business strategy.

Artificial Intelligence and Machine Learning

Advancing our ability to leverage AIML is a key focus of our strategy moving forward as embracing new technologies to improve our business processes is central to our cultural identity. Our modern digital deposit platform allows us to be more adaptable than traditional banks and we have a track record of successfully adding key capabilities to support the continued improvement of our business. While the application of AI in our business processes remains at a preliminary stage at this time, we have, and are analyzing additional, AI initiatives across several areas of our digital deposit and credit platforms.

Today, we leverage AIML reasoning models and analytics to improve our ability to effectively collect and analyze data. Large language models enable processing and reporting on our semantic text datasets (customer segmentation, call center transcripts and others) by summarizing large data into specific actionable insights, such as bespoke customer sentiment scores and trend tracking. We also developed self-service tools that enable us to query more effectively; a chat-style AI agent with native integration into our data layer allows us to run analytics and access trend data without any technical skills needed.

While AIML technologies continue to evolve, disciplined deployment, strategic investment, and strong governance will remain central to our approach as an enduring institution focused on delivering durable growth and superior returns on capital.

Risk Factor Summary

Our business is subject to a number of risks and uncertainties, as more fully described under “Risk Factors” in this prospectus. These risks could materially and adversely impact our business, financial condition, and results of

operations, which could cause the trading price of our common stock to decline and could result in a loss of all or part of your investment. Some of these risks include:

•Our future success is dependent on our ability to compete effectively in a highly competitive industry.

•The middle-market businesses which we target may have fewer resources to weather adverse business developments, which may impair a borrower’s ability to repay a loan.

•We depend on the accuracy and completeness of information about clients and counterparties, which, if incorrect or incomplete, could harm our earnings.

•New lines of business, new products and services, strategic project initiatives or new partnerships may subject us to additional risks.

•We have a net deferred tax asset that may not be fully realized.

•We face significant operational risks, including fraud and loss due to execution errors, data processing and technology errors.

•Our risk management framework may not be effective in mitigating risks and/or losses to us.

•We are subject to risk arising from failure or circumvention of our controls and procedures.

•Our accounting estimates and risk management processes rely on analytical and forecasting techniques, models and judgment, which may inadequately measure risk.

•We rely heavily on our senior management team, particularly John Delaney, and other key employees.

•Managing reputational risk is important to attracting and maintaining clients, investors and employees, and damage to our reputation could have an adverse effect on us.

•Our operations could be interrupted if our third-party service providers experience difficulty, terminate their services or fail to comply with banking regulations.

•System failures in or cybersecurity breaches of our network security or other information technology systems could subject us to increased operating costs as well as litigation, damage to our reputation and other potential losses.

•We may not be able to measure and manage our credit risk adequately.

•Our ACL may prove to be insufficient to cover actual credit losses.