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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value on a non-recurring basis as of December 31, 2024, are presented in the following table: 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, 2024, the Company’s investment in collateral-dependent loans does not include individual credit loss allowances. As of December 31, 2024, the Company’s investment in impaired loans includes individual credit loss allowances of $922 thousand. As of December 31, 2024, the Company’s investment in other real estate owned assets includes unrealized fair value adjustment losses of $2.2 million, which is recognized in Other non-interest income in the Consolidated Statement 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, 2024:

December 31, 2024

(in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
Financial assets:
Cash, cash equivalents and restricted cash $	1,179,982 $	1,179,982 $	1,179,982 $	— $	—
Investment securities available-for-sale, at fair value 1,471,468 1,471,468 1,340,622 125,381 5,465
Investment securities held-to-maturity, at amortized cost 52,525 53,752 — 35,684 18,068
Loans held-for-sale, at fair value 108,575 108,575 — — 108,575
Loans held-for-sale, at lower of cost or fair value 207,909 207,909 — — 207,909
Loans held for investment, at fair value 7,081 7,081 — — 7,081
Loans held for investment, at amortized cost 3,963,973 3,924,133 — — 3,924,133
Financing receivables held-for-sale, at lower of cost or fair value 13,835 14,146 — — 14,146
Financing receivables held for investment, at amortized cost 29,332 27,342 — — 27,342
Accrued interest receivable 35,525 35,525 35,525 — —
Financial liabilities:
Time deposits $	1,799,838 $	1,803,848 $	— $	1,803,848 $	—
Other deposits 3,765,494 3,765,494 3,765,494 — —
Long-term borrowings, net 174,526 154,307 — 154,307 —
Federal Home Loan Bank of Atlanta advances 700,000 700,000 700,000 — —

NOTE 22 – PARENT COMPANY FINANCIAL STATEMENTS

Financial statements for the Parent as of and for the year ended December 31, 2024:

Balance Sheet

(in thousands, except share and per share amounts) December 31, 2024
ASSETS
Cash, due from banks and restricted cash $	71,414
Interest-bearing deposits with banks 742
Cash, cash equivalents and restricted cash 72,156
Loans held for investment, at amortized cost 15,415
Allowance for credit losses (144)
Net loans held for investment, at amortized cost 15,271
Deferred taxes, net 3,607
Accrued interest receivable 100
Investment in subsidiaries 812,495
Other assets 21,167

Total assets $	924,796
LIABILITIES
Long-term borrowings, net $	174,526
Other liabilities 28,316
Total liabilities 202,842
STOCKHOLDERS’ EQUITY

Preferred stock, $0.001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding —

Common stock, $0.001 par value per share; 103,200,000 shares authorized; 40,243,916 shares issued and outstanding 40
Additional paid-in capital 481,455
Retained earnings 240,902
Accumulated other comprehensive loss (443)
Total stockholders’ equity 721,954

Total liabilities and stockholders’ equity $	924,796

Statement of Income

(in thousands) December 31, 2024
INTEREST INCOME
Interest income $	1,736
Interest expense 9,029
Net interest expense (7,293)
Recovery of credit losses (76)
Net interest expense after recovery of credit losses (7,217)
NON-INTEREST INCOME AND EXPENSE
Other income 10
Other expense 6,563
Total non-interest expense (6,553)
Loss before income tax benefit and equity in undistributed income of subsidiary (13,770)
Income tax benefit (2,202)
Loss before undistributed income of subsidiary (11,568)
Equity in undistributed income of subsidiary 54,934
Net income $	43,366

Statement of Cash Flows

(in thousands) December 31, 2024
OPERATING ACTIVITIES
Net income $	43,366
Adjustments to reconcile net income to net cash used in operating activities
Equity in undistributed income of subsidiary (54,934)
Recovery of credit losses (76)
Deferred income taxes (564)
Stock-based compensation 3,588
Net change in assets and liabilities:
Accrued interest receivable 75
Other assets (10,823)
Other liabilities 18,432
Net cash used in operating activities (936)
INVESTING ACTIVITIES
Net decrease in loans held for investment, at amortized cost 3,736
Other (2,839)
Net cash provided by investing activities 897
FINANCING ACTIVITIES
Proceeds from exercise of stock options under employee stock plans 705
Shares withheld for tax withholding and exercise of stock options and restricted shares (751)
Net cash used in financing activities (46)
Net decrease in cash, cash equivalents and restricted cash (85)
Beginning cash, cash equivalents and restricted cash 72,241
Ending cash, cash equivalents and restricted cash $	72,156

Shares

Class A Common Stock

PRELIMINARY PROSPECTUS

Goldman Sachs & Co. LLC J.P. Morgan

PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

Item 13. Other Expenses of Issuance and Distribution.

The following table sets forth all costs and expenses, other than the underwriting discounts and commissions payable by us, in connection with the offer and sale of the securities being registered. All amounts shown are estimates except for the SEC registration fee and the Financial Industry Regulatory Authority, Inc. (FINRA) filing fee.

Amount To Be Paid

Registration fee	$                   *

FINRA filing fee	*

Listing fees	*

Printing and engraving expenses	*

Legal fees and expenses	*

Accounting fees and expenses	*

Transfer agent and registrar fees and expense	*

Miscellaneous	*

Total	$                   *

*To be provided by amendment.

Item 14. Indemnification of Directors and Officers.

Section 145 of the DGCL authorizes a court to award, or a corporation’s board of directors to grant, indemnity to directors and officers under certain circumstances and subject to certain limitations. The terms of Section 145 of the DGCL are sufficiently broad to permit indemnification under certain circumstances for liabilities, including reimbursement of expenses incurred, arising under the Securities Act.

The Registrant’s amended and restated certificate of incorporation will provide that its directors and officers will not be personally liable to the Registrant or its stockholders for monetary damages for any breach of fiduciary duty as a director or officer, except to the extent such exemption from liability or limitation is not permitted under the DGCL, as may be amended, or for liability:

•for any breach of the director’s or officer’s duty of loyalty to the Registrant or its stockholders;

•for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;

•in the case of a director, pursuant to Section 174 of the DGCL;

•for any transaction from which the director derived an improper personal benefit; or

•in the case of an officer, in any action by or in the right of the Registrant.