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 loans modified during the twelve months ended December 31, 2024. The following table presents the amortized cost of loans that were modified during the twelve months ended December 31, 2025 by loan portfolio segment and type of modification. The percentage of the amortized cost basis of loans that were modified as compared to the amortized cost basis of each loan portfolio is also presented below:


	Twelve Months Ended
	December 31, 2025
	(dollars in thousands)
	Collateral Dependent Foreclosure		Total		% of Total Class of Loans
Mortgage real estate loans:
Commercial - Non-Owner Occupied & Multifamily	$	5,348	$	5,348		1.34	%
Total	$	5,348	$	5,348

The modified loan balance at December 31, 2025 represents one customer relationship comprised of three residential multifamily income producing properties in Washington D.C. (the District), and the Bank has been granted receivership of these properties. The Bank 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. These loans are on nonaccrual status, are 90 or more days past due and have been written down to their current estimated values.

There were no loans to borrowers experiencing financial difficulty that had a payment default during the twelve months ended December 31, 2024 and were modified in the twelve months prior to that default. Management defines default as over 30 days contractually past due under the modified terms, the foreclosure and/or repossession of the collateral, or the charge-off of the loan.