At June 30, 2026, the Company was servicing $48.3 million of loans for other financial institutions which are not included in the table above. Also excluded from the table above are net servicing assets of $757 thousand at June 30, 2026, which are recorded in Other Assets in the Consolidated Balance Sheets. When loans are sold with servicing retained, servicing assets are recorded which represent the Company's right to service loans that were sold. Servicing assets are initially recorded by the Company at fair value and are subsequently amortized in proportion to, and over the period of, estimated net servicing income.

Past due loans by class at June 30, 2026 and December 31, 2025 were as follows:


	June 30, 2026
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Days Past Due Still Accruing
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	301	$	301	$	95,153	$	95,454	$	—
HELOCs		9		—		—		9		59,964		59,973		—
Residential First Lien - Investor		—		—		98		98		107,358		107,456		—
Residential First Lien - Owner Occupied		557		—		176		733		177,006		177,739		—
Residential Junior Liens		—		—		—		—		10,117		10,117		—
Commercial - Owner Occupied		4,404		822		4,459		9,685		320,132		329,817		—
Commercial - Non-Owner Occupied & Multifamily		8,225		—		3,707		11,932		385,685		397,617		—
Commercial and industrial loans:
Other commercial and industrial loans		676		379		2,556		3,611		114,448		118,059		3
Marine loans		905		—		—		905		158,341		159,246		—
Consumer loans		707		47		17		771		27,281		28,052		17
Overdrafts		—		—		—		—		463		463		—
Other loans		—		—		—		—		11,540		11,540		—
Total	$	15,483	$	1,248	$	11,314	$	28,045	$	1,467,488	$	1,495,533	$	20


	December 31, 2025
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Past Due Still Accruing
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	428	$	428	$	81,908	$	82,336	$	—
HELOCs		112		—		160		272		58,368		58,640		—
Residential First Lien - Investor		—		391		98		489		106,818		107,307		—
Residential First Lien - Owner Occupied		467		85		24		576		178,231		178,807		—
Residential Junior Liens		57		—		—		57		10,667		10,724		—
Commercial - Owner Occupied		—		—		4,738		4,738		294,115		298,853		—
Commercial - Non-Owner Occupied & Multifamily		1,913		—		5,348		7,261		391,665		398,926		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		4		4		—
Other commercial and industrial loans		240		363		2,311		2,914		110,306		113,220		—
Marine loans		—		—		—		—		175,639		175,639		—
Consumer loans		128		9		60		197		28,545		28,742		60
Overdrafts		—		—		—		—		318		318		—
Other loans		—		—		—		—		13,946		13,946		—
Total	$	2,917	$	848	$	13,167	$	16,932	$	1,450,530	$	1,467,462	$	60

Nonaccrual loans by class at June 30, 2026 and December 31, 2025 were as follows:


	June 30, 2026						December 31, 2025
	(in thousands)						(in thousands)
	Nonaccruals with No Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses		Nonaccrual Loans		Nonaccruals with No Allowance for Credit Losses		Nonaccrual with an Allowance for Credit Losses		Nonaccrual Loans
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	301	$	301	$	428	$	—	$	428
HELOCs		—		—		—		160		—		160
Residential First Lien - Investor		384		98		482		98		—		98
Residential First Lien - Owner Occupied		620		—		620		494		—		494
Residential Junior Liens		—		—		—		—		—		—
Commercial - Owner Occupied		2,155		2,304		4,459		2,894		1,844		4,738
Commercial - Non-Owner Occupied & Multifamily		—		7,282		7,282		5,348		—		5,348
Commercial and industrial loans:
Other commercial and industrial loans		18		2,932		2,950		2,253		879		3,132
Marine loans		—		—		—		—		—		—
Consumer loans		52		—		52		—		—		—
Overdrafts		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
Total	$	3,229	$	12,917	$	16,146	$	11,675	$	2,723	$	14,398

The allowance for credit losses on loans by segment at June 30, 2026 and December 31, 2025 was as follows:


	As of and For the Six Months Ended
	June 30, 2026
	(in thousands)
	Construction and Farmland		Residential Real Estate			Commercial Real Estate & MultiFamily			Commercial			Marine			Consumer			All Other Loans			Total
Allowance for credit losses:
Beginning Balance	$	1,275	$	3,160		$	8,163		$	1,312		$	710		$	230		$	470		$	15,320
Charge-Offs		—		—			(1,586	)		(335	)		(369	)		(40	)		(94	)		(2,424	)
Recoveries		3		150			—			37			2			21			18			231
Provision (recovery)		772		(865	)		3,301			1,661			547			18			(255	)		5,179
Ending balance	$	2,050	$	2,445		$	9,878		$	2,675		$	890		$	229		$	139		$	18,306
Ending balance: Individually evaluated for impairment	$	272	$	7		$	1,365		$	1,420		$	—		$	—		$	—		$	3,064
Ending balance: Collectively evaluated for impairment	$	1,778	$	2,438		$	8,513		$	1,255		$	890		$	229		$	139		$	15,242
Loans:
Ending balance	$	95,454	$	355,285		$	727,434		$	118,059		$	159,246		$	28,052		$	12,003		$	1,495,533
Ending balance: Individually evaluated for impairment	$	301	$	1,081		$	11,741		$	2,932		$	—		$	—		$	—		$	16,055
Ending balance: Collectively evaluated for impairment	$	95,153	$	354,204		$	715,693		$	115,127		$	159,246		$	28,052		$	12,003		$	1,479,478


	As of and For the Year Ended
	December 31, 2025
	(in thousands)
	Construction and Farmland			Residential Real Estate			Commercial Real Estate & MultiFamily			Commercial			Marine			Consumer			All Other Loans			Total
Allowance for credit losses:
Beginning Balance	$	2,387		$	2,318		$	7,251		$	1,433		$	1,279		$	238		$	121		$	15,027
Charge-Offs		—			(31	)		(2,771	)		(485	)		(580	)		(140	)		(139	)		(4,146	)
Recoveries		5			308			—			153			—			46			47			559
Provision (recovery)		(1,117	)		565			3,683			211			11			86			441			3,880
Ending balance	$	1,275		$	3,160		$	8,163		$	1,312		$	710		$	230		$	470		$	15,320
Ending balance: Individually evaluated for impairment	$	—		$	—		$	49		$	418		$	—		$	—		$	—		$	467
Ending balance: Collectively evaluated for impairment	$	1,275		$	3,160		$	8,114		$	894		$	710		$	230		$	470		$	14,853
Loans:
Ending balance	$	82,336		$	355,478		$	697,779		$	113,224		$	175,639		$	28,742		$	14,264		$	1,467,462
Ending balance: Individually evaluated for impairment	$	428		$	728		$	10,086		$	3,113		$	—		$	—		$	—		$	14,355
Ending balance: Collectively evaluated for impairment	$	81,908		$	354,750		$	687,693		$	110,111		$	175,639		$	28,742		$	14,264		$	1,453,107

The following table presents the amortized cost basis of collateral-dependent loans by loan portfolio segment:


	June 30, 2026						December 31, 2025
	(in thousands)						(in thousands)
(in thousands)	Real Estate Collateral		Other Collateral		Total		Real Estate Collateral		Other Collateral		Total
Mortgage real estate loans:
Construction & Secured by Farmland	$	301	$	—	$	301	$	428	$	—	$	428
HELOCs		—		—		—		160		—		160
Residential First Lien - Investor		482		—		482		98		—		98
Residential First Lien - Owner Occupied		599		—		599		470		—		470
Residential Junior Liens		—		—		—		—		—		—
Commercial - Owner Occupied		4,459		—		4,459		4,738		—		4,738
Commercial - Non-Owner Occupied & Multifamily		7,282		—		7,282		5,348		—		5,348
Commercial and industrial loans:
Other commercial and industrial loans		—		2,932		2,932		—		3,113		3,113
Marine loans		—		—		—		—		—		—
Consumer loans		—		—		—		—		—		—
Overdrafts		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
	$	13,123	$	2,932	$	16,055	$	11,242	$	3,113	$	14,355

The Company did not identify any significant changes in the extent to which collateral secures its collateral dependent loans, whether in the form of general deterioration or from other factors during the period ended June 30, 2026.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. This analysis is performed on a quarterly basis. The following table presents risk ratings by loan portfolio segment and origination year. Description of these ratings are as follows:


June 30, 2026
	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2026		2025		2024		2023		2022		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Mortgage real estate loans:
Construction & Secured by Farmland
Pass	$	17,955	$	21,592	$	34,141	$	2,107	$	5,970	$	7,777	$	1,917	$	308	$	91,767
Special Mention		—		—		649		1,316		—		1,421		—		—		3,386
Classified		—		—		—		301		—		—		—		—		301
Total	$	17,955	$	21,592	$	34,790	$	3,724	$	5,970	$	9,198	$	1,917	$	308	$	95,454
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
HELOCs
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	59,931	$	—	$	59,931
Special Mention		—		—		—		—		—		—		42		—		42
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	59,973	$	—	$	59,973
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential First Lien - Investor
Pass	$	10,747	$	17,935	$	4,704	$	8,371	$	13,057	$	44,670	$	—	$	1,374	$	100,858
Special Mention		—		—		—		1,651		1,234		2,326		—		—		5,211
Classified		—		—		—		—		98		384		—		905		1,387
Total	$	10,747	$	17,935	$	4,704	$	10,022	$	14,389	$	47,380	$	—	$	2,279	$	107,456
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential First Lien - Owner Occupied
Pass	$	6,034	$	13,326	$	18,820	$	45,990	$	27,152	$	64,178	$	—	$	152	$	175,652
Special Mention		—		—		39		277		976		45		—		40		1,377
Classified		—		—		154		—		—		556		—		—		710
Total	$	6,034	$	13,326	$	19,013	$	46,267	$	28,128	$	64,779	$	—	$	192	$	177,739
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Junior Liens
Pass	$	521	$	1,602	$	511	$	1,528	$	1,716	$	3,958	$	—	$	152	$	9,988
Special Mention		—		—		—		—		—		61		—		68		129
Classified		—		—		—		—		—		—		—		—		—
Total	$	521	$	1,602	$	511	$	1,528	$	1,716	$	4,019	$	—	$	220	$	10,117
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial - Owner Occupied
Pass	$	40,239	$	33,625	$	21,951	$	48,480	$	66,899	$	94,900	$	2,812	$	4,133	$	313,039
Special Mention		—		—		737		909		3,985		6,488		200		—		12,319
Classified		—		—		1,833		471		—		2,155		—		—		4,459


Total	$	40,239	$	33,625	$	24,521	$	49,860	$	70,884	$	103,543	$	3,012	$	4,133	$	329,817
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial - Non-Owner Occupied & Multifamily
Pass	$	33,014	$	67,408	$	25,682	$	54,292	$	63,453	$	115,377	$	5,429	$	4,615	$	369,270
Special Mention		—		—		269		415		4,068		12,213		—		—		16,965
Classified		—		—		—		—		8,404		2,978		—		—		11,382
Total	$	33,014	$	67,408	$	25,951	$	54,707	$	75,925	$	130,568	$	5,429	$	4,615	$	397,617
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	403	$	1,183	$	—	$	—	$	1,586
Commercial and industrial loans:
Other commercial and industrial loans
Pass	$	28,770	$	13,266	$	12,770	$	5,624	$	8,271	$	7,487	$	31,959	$	2,353	$	110,500
Special Mention		—		428		3,871		—		240		—		50		18		4,607
Classified		—		—		103		1,648		461		234		506		—		2,952
Total	$	28,770	$	13,694	$	16,744	$	7,272	$	8,972	$	7,721	$	32,515	$	2,371	$	118,059
Current period gross charge-offs	$	—	$	127	$	125	$	78	$	—	$	—	$	5	$	—	$	335
Marine loans
Pass	$	—	$	—	$	—	$	55,237	$	83,180	$	20,829	$	—	$	—	$	159,246
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	55,237	$	83,180	$	20,829	$	—	$	—	$	159,246
Current period gross charge-offs	$	—	$	—	$	—	$	123	$	—	$	246	$	—	$	—	$	369
Consumer loans
Pass	$	1,466	$	1,472	$	1,249	$	694	$	9,037	$	11,547	$	2,478	$	—	$	27,943
Special Mention		—		—		29		3		—		—		—		—		32
Classified		—		52		—		8		—		—		17		—		77
Total	$	1,466	$	1,524	$	1,278	$	705	$	9,037	$	11,547	$	2,495	$	—	$	28,052
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	40	$	—	$	40
Overdrafts
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Classified		463		—		—		—		—		—		—		—		463
Total	$	463	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	463
Current period gross charge-offs	$	94	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	94
Other loans
Pass	$	247	$	3,955	$	—	$	32	$	4,650	$	2,050	$	606	$	—	$	11,540
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	247	$	3,955	$	—	$	32	$	4,650	$	2,050	$	606	$	—	$	11,540
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by Risk Category
Pass	$	138,993	$	174,181	$	119,828	$	222,355	$	283,385	$	372,773	$	105,132	$	13,087	$	1,429,734
Special Mention		—		428		5,594		4,571		10,503		22,554		292		126		44,068


December 31, 2025
	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Mortgage real estate loans:
Construction & Secured by Farmland
Pass	$	17,680	$	37,736	$	6,684	$	6,158	$	3,089	$	6,643	$	1,144	$	308	$	79,442
Special Mention		1,788		655		—		—		—		—		—		—		2,443
Classified		—		—		428		—		—		23		—		—		451
Total	$	19,468	$	38,391	$	7,112	$	6,158	$	3,089	$	6,666	$	1,144	$	308	$	82,336
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
HELOCs
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	58,439	$	—	$	58,439
Special Mention		—		—		—		—		—		—		41		—		41
Classified		—		—		—		—		—		—		160		—		160
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	58,640	$	—	$	58,640
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	31	$	—	$	31
Residential First Lien - Investor
Pass	$	19,774	$	6,261	$	10,174	$	15,545	$	23,908	$	25,060	$	—	$	900	$	101,622
Special Mention		—		—		685		—		3,025		925		—		—		4,635
Classified		—		952		—		98		—		—		—		—		1,050
Total	$	19,774	$	7,213	$	10,859	$	15,643	$	26,933	$	25,985	$	—	$	900	$	107,307
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential First Lien - Owner Occupied
Pass	$	13,144	$	18,396	$	47,588	$	28,716	$	21,399	$	45,468	$	—	$	250	$	174,961
Special Mention		—		41		277		—		—		2,784		—		—		3,102
Classified		—		—		—		—		—		744		—		—		744
Total	$	13,144	$	18,437	$	47,865	$	28,716	$	21,399	$	48,996	$	—	$	250	$	178,807
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Junior Liens
Pass	$	1,763	$	628	$	1,547	$	1,843	$	2,541	$	2,028	$	—	$	161	$	10,511
Special Mention		—		—		149		—		—		64		—		—		213
Classified		—		—		—		—		—		—		—		—		—


Total	$	1,763	$	628	$	1,696	$	1,843	$	2,541	$	2,092	$	—	$	161	$	10,724
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial - Owner Occupied
Pass	$	36,319	$	24,619	$	46,689	$	69,524	$	25,728	$	61,040	$	3,046	$	2,736	$	269,701
Special Mention		—		1,371		920		3,336		5,879		12,908		—		—		24,414
Classified		—		1,844		699		—		2,195		—		—		—		4,738
Total	$	36,319	$	27,834	$	48,308	$	72,860	$	33,802	$	73,948	$	3,046	$	2,736	$	298,853
Current period gross charge-offs	$	—	$	468	$	37	$	—	$	8	$	—	$	—	$	—	$	513
Commercial - Non-Owner Occupied & Multifamily
Pass	$	68,609	$	25,254	$	53,637	$	72,478	$	48,985	$	94,990	$	7,909	$	4,838	$	376,700
Special Mention		—		271		2,053		4,153		3,728		6,673		—		—		16,878
Classified		—		—		—		1,132		4,216		—		—		—		5,348
Total	$	68,609	$	25,525	$	55,690	$	77,763	$	56,929	$	101,663	$	7,909	$	4,838	$	398,926
Current period gross charge-offs	$	1,184	$	—	$	—	$	257	$	817	$	—	$	—	$	—	$	2,258
Commercial and industrial loans:
SBA PPP loans
Pass	$	—	$	—	$	—	$	—	$	4	$	—	$	—	$	—	$	4
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	4	$	—	$	—	$	—	$	4
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial loans
Pass	$	23,186	$	15,740	$	6,112	$	9,317	$	4,531	$	4,746	$	41,305	$	2,125	$	107,062
Special Mention		—		2,802		—		—		—		216		—		8		3,026
Classified		48		113		1,725		461		19		—		766		—		3,132
Total	$	23,234	$	18,655	$	7,837	$	9,778	$	4,550	$	4,962	$	42,071	$	2,133	$	113,220
Current period gross charge-offs	$	—	$	96	$	184	$	85	$	—	$	—	$	120	$	—	$	485
Marine loans
Pass	$	—	$	—	$	60,223	$	92,924	$	22,191	$	301	$	—	$	—	$	175,639
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	60,223	$	92,924	$	22,191	$	301	$	—	$	—	$	175,639
Current period gross charge-offs	$	—	$	—	$	314	$	266	$	—	$	—	$	—	$	—	$	580


Consumer loans
Pass	$	2,237	$	1,643	$	1,072	$	9,713	$	4,665	$	7,525	$	1,870	$	—	$	28,725
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		17		—		17
Total	$	2,237	$	1,643	$	1,072	$	9,713	$	4,665	$	7,525	$	1,887	$	—	$	28,742
Current period gross charge-offs	$	—	$	6	$	30	$	2	$	6	$	8	$	88	$	—	$	140
Overdrafts
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Classified		318		—		—		—		—		—		—		—		318
Total	$	318	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	318
Current period gross charge-offs	$	139	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	139
Other loans
Pass	$	4,250	$	—	$	40	$	7,515	$	—	$	2,102	$	39	$	—	$	13,946
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	4,250	$	—	$	40	$	7,515	$	—	$	2,102	$	39	$	—	$	13,946
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by Risk Category
Pass	$	186,962	$	130,277	$	233,766	$	313,733	$	157,041	$	249,903	$	113,752	$	11,318	$	1,396,752
Special Mention		1,788		5,140		4,084		7,489		12,632		23,570		41		8		54,752
Classified		366		2,909		2,852		1,691		6,430		767		943		—		15,958
Total	$	189,116	$	138,326	$	240,702	$	322,913	$	176,103	$	274,240	$	114,736	$	11,326	$	1,467,462
Total current period gross charge-offs	$	1,323	$	570	$	565	$	610	$	831	$	8	$	239	$	—	$	4,146

Unfunded Commitments: The Company maintains a separate reserve for credit losses on unfunded commitments, which is included in Other Liabilities on the Consolidated Balance Sheet. The reserve for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit losses in the Consolidated Statement of Operations. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded, utilizing the same models and approaches for the Company's other loan portfolio segments, as these unfunded commitments share similar risk characteristics as its loan portfolio segments. The Company has identified the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time. No credit loss estimate is reported for off-balance-sheet credit exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that maybe drawn prior to the cancellation of the arrangement.

Restructurings for Borrowers Experiencing Financial Difficulty: A loan that has been modified is considered a troubled loan modification when the modification is made to a borrower experiencing financial difficulty and the modification has a direct impact to the contractual cash flows.

There were no new loan modifications to borrowers experiencing financial difficulty made during the six months ended June 30, 2026 and 2025.

At June 30, 2026, the amortized cost balance of loans modified in the past 12 months was $3.7 million. This balance represents one customer relationship comprised of three residential multifamily income producing properties in Washington D.C. (the District). These loans are on nonaccrual status and are 90 or more days past due. The Bank has been granted receivership and is actively working with the receiver to update the properties and ready them for sale while continuing to collect the housing payments directly from the District.

There were no loans to borrowers experiencing financial difficulty that had a payment default during the three and six months ended June 30, 2025 and were modified in the twelve months prior to that default.

Default is determined at 30 days or more past due, upon charge-off, or upon foreclosure. Modified loans in default are individually evaluated for the allowance of credit losses or if the modified loan is deemed uncollectible, the loan, or a portion of the loan, is written off and the allowance for credit losses is adjusted accordingly.