At September 30, 2025, the Company was servicing $35.1 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 $553 thousand at September 30, 2025, 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 September 30, 2025 and December 31, 2024 were as follows:


	September 30, 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 Days Past Due Still Accruing
Mortgage real estate loans:
Construction & Secured by Farmland	$	—	$	—	$	428	$	428	$	84,039	$	84,467	$	—
HELOCs		222		160		—		382		54,167		54,549		—
Residential First Lien - Investor		491		—		98		589		103,353		103,942		—
Residential First Lien - Owner Occupied		1,374		—		25		1,399		177,326		178,725		—
Residential Junior Liens		87		261		—		348		10,149		10,497		—
Commercial - Owner Occupied		—		—		5,096		5,096		285,835		290,931		—
Commercial - Non-Owner Occupied & Multifamily		—		—		5,455		5,455		392,621		398,076		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		10		10		—
Other commercial and industrial loans		53		6		1,085		1,144		102,270		103,414		35
Marine loans		—		327		—		327		185,611		185,938		—
Consumer loans		588		165		140		893		28,529		29,422		56
Overdrafts		—		—		—		—		297		297		—
Other loans		—		—		—		—		13,895		13,895		—
Total	$	2,815	$	919	$	12,327	$	16,061	$	1,438,102	$	1,454,163	$	91


	December 31, 2024
	(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	$	—	$	—	$	—	$	—	$	95,200	$	95,200	$	—
HELOCs		21		—		—		21		50,625		50,646		—
Residential First Lien - Investor		—		98		—		98		105,812		105,910		—
Residential First Lien - Owner Occupied		—		28		247		275		193,790		194,065		—
Residential Junior Liens		13		—		—		13		11,171		11,184		—
Commercial - Owner Occupied		2,212		—		—		2,212		270,024		272,236		—
Commercial - Non-Owner Occupied & Multifamily		—		—		—		—		367,680		367,680		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		28		28		—
Other commercial and industrial loans		922		84		80		1,086		109,229		110,315		—
Marine loans		—		—		—		—		210,095		210,095		—
Consumer loans		673		6		138		817		30,200		31,017		—
Overdrafts		—		—		—		—		309		309		—
Other loans		—		—		—		—		11,911		11,911		—
Total	$	3,841	$	216	$	465	$	4,522	$	1,456,074	$	1,460,596	$	—

Nonaccrual loans by class at September 30, 2025 and December 31, 2024 were as follows:


	September 30, 2025						December 31, 2024
	(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	$	428	$	—	$	428	$	—	$	—	$	—
HELOCs		—		—		—		—		—		—
Residential First Lien - Investor		98		—		98		—		—		—
Residential First Lien - Owner Occupied		508		—		508		347		—		347
Residential Junior Liens		—		—		—		—		—		—
Commercial - Owner Occupied		3,253		1,844		5,097		739		—		739
Commercial - Non-Owner Occupied & Multifamily		5,455		—		5,455		—		—		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		—		—
Other commercial and industrial loans		1,020		478		1,498		—		903		903
Marine loans		—		—		—		—		—		—
Consumer loans		83		—		83		83		—		83
Overdrafts		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
Total	$	10,845	$	2,322	$	13,167	$	1,169	$	903	$	2,072

The allowance for credit losses on loans by segment at September 30, 2025 and December 31, 2024 was as follows:


	As of and For the Nine Months Ended
	September 30, 2025
	(in thousands)
	Construction and Farmland			Residential Real Estate			Commercial Real Estate & MultiFamily			Commercial			Marine			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	2,387		$	2,318		$	7,251		$	1,433		$	1,279		$	238		$	121		$	—	$	15,027
Charge-Offs		—			(30	)		(2,631	)		(353	)		(581	)		(127	)		(106	)		—		(3,828	)
Recoveries		4			296			—			110			—			34			34			—		478
Provision		(618	)		(329	)		3,452			(70	)		291			96			311			—		3,133
Ending balance	$	1,773		$	2,255		$	8,072		$	1,120		$	989		$	241		$	360		$	—	$	14,810
Ending balance: Individually evaluated for impairment	$	—		$	—		$	49		$	284		$	—		$	—		$	—		$	—	$	333
Ending balance: Collectively evaluated for impairment	$	1,773		$	2,255		$	8,023		$	836		$	989		$	241		$	360		$	—	$	14,477
Loans:
Ending balance	$	84,467		$	347,713		$	689,007		$	103,424		$	185,938		$	29,422		$	14,192		$	—	$	1,454,163
Ending balance: Individually evaluated for impairment	$	428		$	581		$	10,552		$	1,449		$	—		$	83		$	—		$	—	$	13,093
Ending balance: Collectively evaluated for impairment	$	84,039		$	347,132		$	678,455		$	101,975		$	185,938		$	29,339		$	14,192		$	—	$	1,441,070


	As of and For the Year Ended
	December 31, 2024
	(in thousands)
	Construction and Farmland			Residential Real Estate			Commercial Real Estate & MultiFamily			Commercial			Marine			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	772		$	4,725		$	6,224		$	1,027		$	1,153		$	198		$	394		$	—	$	14,493
Charge-Offs		(94	)		(277	)		(7	)		(238	)		(1,778	)		(309	)		(141	)		—		(2,844	)
Recoveries		102			347			162			67			—			150			25			—		853
Provision		1,607			(2,477	)		872			577			1,904			199			(157	)		—		2,525
Ending balance	$	2,387		$	2,318		$	7,251		$	1,433		$	1,279		$	238		$	121		$	—	$	15,027
Ending balance: Individually evaluated for impairment	$	—		$	—		$	—		$	248		$	—		$	—		$	—		$	—	$	248
Ending balance: Collectively evaluated for impairment	$	2,387		$	2,318		$	7,251		$	1,185		$	1,279		$	238		$	121		$	—	$	14,779
Loans:
Ending balance	$	95,200		$	361,805		$	639,916		$	110,343		$	210,095		$	31,017		$	12,220		$	—	$	1,460,596
Ending balance: Individually evaluated for impairment	$	—		$	318		$	739		$	908		$	—		$	83		$	—		$	—	$	2,048
Ending balance: Collectively evaluated for impairment	$	95,200		$	361,487		$	639,177		$	109,435		$	210,095		$	30,934		$	12,220		$	—	$	1,458,548

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


	September 30, 2025						December 31, 2024
	(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	$	428	$	—	$	428	$	—	$	—	$	—
HELOCs		—		—		—		—		—		—
Residential First Lien - Investor		98		—		98		—		—		—
Residential First Lien - Owner Occupied		483		—		483		318		—		318
Residential Junior Liens		—		—		—		—		—		—
Commercial - Owner Occupied		5,097		—		5,097		739		—		739
Commercial - Non-Owner Occupied & Multifamily		5,455		—		5,455		—		—		—
Commercial and industrial loans:
SBA PPP loans		—		—		—		—		—		—
Other commercial and industrial loans		—		1,449		1,449		—		908		908
Marine loans		—		—		—		—		—		—
Consumer loans		83		—		83		83		—		83
Overdrafts		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
	$	11,644	$	1,449	$	13,093	$	1,140	$	908	$	2,048

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 September 30, 2025.

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:


September 30, 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	$	12,704	$	37,841	$	8,704	$	9,849	$	3,663	$	6,915	$	1,874	$	—	$	81,550
Special Mention		1,806		658		—		—		—		—		—		—		2,464
Classified		—		—		428		—		—		25		—		—		453
Total	$	14,510	$	38,499	$	9,132	$	9,849	$	3,663	$	6,940	$	1,874	$	—	$	84,467
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
HELOCs
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	54,509	$	—	$	54,509
Special Mention		—		—		—		—		—		—		40		—		40
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	54,549	$	—	$	54,549
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	30	$	—	$	30
Residential First Lien - Investor
Pass	$	13,169	$	6,504	$	10,598	$	16,550	$	24,742	$	26,258	$	—	$	1,137	$	98,958
Special Mention		—		—		688		—		2,660		564		—		—		3,912
Classified		—		974		—		98		—		—		—		—		1,072
Total	$	13,169	$	7,478	$	11,286	$	16,648	$	27,402	$	26,822	$	—	$	1,137	$	103,942
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential First Lien - Owner Occupied
Pass	$	11,994	$	16,777	$	48,609	$	29,274	$	21,601	$	46,610	$	—	$	273	$	175,138
Special Mention		—		41		—		—		—		2,784		—		—		2,825
Classified		—		—		—		—		—		762		—		—		762
Total	$	11,994	$	16,818	$	48,609	$	29,274	$	21,601	$	50,156	$	—	$	273	$	178,725
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Junior Liens
Pass	$	1,187	$	637	$	1,647	$	1,900	$	2,613	$	2,129	$	—	$	165	$	10,278
Special Mention		—		—		154		—		—		65		—		—		219
Classified		—		—		—		—		—		—		—		—		—
Total	$	1,187	$	637	$	1,801	$	1,900	$	2,613	$	2,194	$	—	$	165	$	10,497
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial - Owner Occupied
Pass	$	22,306	$	26,207	$	46,958	$	71,948	$	26,544	$	63,116	$	2,766	$	2,764	$	262,609
Special Mention		—		—		926		3,357		5,930		13,013		—		—		23,226
Classified		—		1,843		1,042		—		2,211		—		—		—		5,096


Total	$	22,306	$	28,050	$	48,926	$	75,305	$	34,685	$	76,129	$	2,766	$	2,764	$	290,931
Current period gross charge-offs	$	—	$	468	$	—	$	—	$	8	$	—	$	—	$	—	$	476
Commercial - Non-Owner Occupied & Multifamily
Pass	$	52,874	$	26,600	$	56,421	$	79,052	$	49,944	$	102,116	$	7,659	$	4,938	$	379,604
Special Mention		—		272		—		4,185		3,753		4,807		—		—		13,017
Classified		—		—		—		1,132		4,323		—		—		—		5,455
Total	$	52,874	$	26,872	$	56,421	$	84,369	$	58,020	$	106,923	$	7,659	$	4,938	$	398,076
Current period gross charge-offs	$	—	$	—	$	—	$	1,441	$	714	$	—	$	—	$	—	$	2,155
Commercial and industrial loans:
SBA PPP loans
Pass	$	—	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	10
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	10
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial loans
Pass	$	18,569	$	20,491	$	8,221	$	10,051	$	4,931	$	5,423	$	29,216	$	2,158	$	99,060
Special Mention		—		2,811		—		—		—		—		—		9		2,820
Classified		—		—		715		85		20		—		685		29		1,534
Total	$	18,569	$	23,302	$	8,936	$	10,136	$	4,951	$	5,423	$	29,901	$	2,196	$	103,414
Current period gross charge-offs	$	—	$	67	$	185	$	—	$	—	$	—	$	101	$	—	$	353
Marine loans
Pass	$	—	$	—	$	61,252	$	98,120	$	25,948	$	618	$	—	$	—	$	185,938
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	61,252	$	98,120	$	25,948	$	618	$	—	$	—	$	185,938
Current period gross charge-offs	$	—	$	—	$	315	$	266	$	—	$	—	$	—	$	—	$	581
Consumer loans
Pass	$	1,685	$	1,899	$	1,304	$	9,995	$	4,945	$	7,620	$	1,878	$	—	$	29,326
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		83		—		13		—		96
Total	$	1,685	$	1,899	$	1,304	$	9,995	$	5,028	$	7,620	$	1,891	$	—	$	29,422
Current period gross charge-offs	$	—	$	6	$	30	$	2	$	6	$	8	$	75	$	—	$	127
Overdrafts
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Classified		297		—		—		—		—		—		—		—		297
Total	$	297	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	297
Current period gross charge-offs	$	106	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	106
Other loans
Pass	$	4,250	$	—	$	43	$	7,429	$	—	$	2,122	$	51	$	—	$	13,895
Special Mention		—		—		—		—		—		—		—		—		—


Classified		—		—		—		—		—		—		—		—		—
Total	$	4,250	$	—	$	43	$	7,429	$	—	$	2,122	$	51	$	—	$	13,895
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by Risk Category
Pass	$	138,738	$	136,956	$	243,757	$	334,168	$	164,941	$	262,927	$	97,953	$	11,435	$	1,390,875
Special Mention		1,806		3,782		1,768		7,542		12,343		21,233		40		9		48,523
Classified		297		2,817		2,185		1,315		6,637		787		698		29		14,765
Total	$	140,841	$	143,555	$	247,710	$	343,025	$	183,921	$	284,947	$	98,691	$	11,473	$	1,454,163
Total current period gross charge-offs	$	106	$	541	$	530	$	1,709	$	728	$	8	$	206	$	—	$	3,828

Credit quality information by class at December 31, 2024 and gross charge-offs by year of origination for the year ended December 31, 2024 was as follows:


December 31, 2024
	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Mortgage real estate loans:
Construction & Secured by Farmland
Pass	$	33,338	$	25,777	$	13,722	$	3,830	$	4,758	$	3,908	$	3,055	$	—	$	88,388
Special Mention		—		6,781		—		—		—		—		—		—		6,781
Classified		—		—		—		—		—		31		—		—		31
Total	$	33,338	$	32,558	$	13,722	$	3,830	$	4,758	$	3,939	$	3,055	$	—	$	95,200
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	94	$	—	$	—	$	94
HELOCs
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	50,454	$	—	$	50,454
Special Mention		—		—		—		—		—		—		192		—		192
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	50,646	$	—	$	50,646
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	14	$	—	$	14
Residential First Lien - Investor
Pass	$	7,567	$	15,074	$	18,816	$	27,722	$	10,729	$	21,201	$	—	$	559	$	101,668
Special Mention		—		696		370		1,053		—		295		—		—		2,414
Classified		—		—		—		—		—		—		—		1,828		1,828
Total	$	7,567	$	15,770	$	19,186	$	28,775	$	10,729	$	21,496	$	—	$	2,387	$	105,910
Current period gross charge-offs	$	—	$	—	$	—	$	150	$	—	$	—	$	—	$	—	$	150
Residential First Lien - Owner Occupied
Pass	$	25,982	$	57,230	$	33,257	$	22,387	$	33,514	$	19,438	$	—	$	387	$	192,195
Special Mention		45		623		—		—		—		592		—		—		1,260
Classified		—		—		—		—		—		610		—		—		610
Total	$	26,027	$	57,853	$	33,257	$	22,387	$	33,514	$	20,640	$	—	$	387	$	194,065
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	103	$	—	$	—	$	103
Residential Junior Liens
Pass	$	991	$	2,191	$	2,484	$	2,942	$	555	$	1,762	$	—	$	175	$	11,100
Special Mention		—		—		—		—		70		—		—		—		70
Classified		—		—		—		—		—		—		—		14		14


Total	$	991	$	2,191	$	2,484	$	2,942	$	625	$	1,762	$	—	$	189	$	11,184
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	10	$	—	$	—	$	10
Commercial - Owner Occupied
Pass	$	29,892	$	32,228	$	75,213	$	36,558	$	21,827	$	45,648	$	2,623	$	2,856	$	246,845
Special Mention		—		364		3,995		5,523		—		14,770		—		—		24,652
Classified		—		—		—		739		—		—		—		—		739
Total	$	29,892	$	32,592	$	79,208	$	42,820	$	21,827	$	60,418	$	2,623	$	2,856	$	272,236
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	—	$	7
Commercial - Non-Owner Occupied & Multifamily
Pass	$	28,275	$	43,596	$	106,921	$	55,945	$	65,561	$	44,949	$	5,397	$	5,834	$	356,478
Special Mention		—		—		1,384		7,584		1,446		788		—		—		11,202
Classified		—		—		—		—		—		—		—		—		—
Total	$	28,275	$	43,596	$	108,305	$	63,529	$	67,007	$	45,737	$	5,397	$	5,834	$	367,680
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial loans:
SBA PPP loans
Pass	$	—	$	—	$	—	$	28	$	—	$	—	$	—	$	—	$	28
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	28	$	—	$	—	$	—	$	—	$	28
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial and industrial loans
Pass	$	28,978	$	8,605	$	17,187	$	4,512	$	3,324	$	3,614	$	37,618	$	2,064	$	105,902
Special Mention		411		1,095		—		1,915		—		3		—		86		3,510
Classified		—		903		—		—		—		—		—		—		903
Total	$	29,389	$	10,603	$	17,187	$	6,427	$	3,324	$	3,617	$	37,618	$	2,150	$	110,315
Current period gross charge-offs	$	—	$	32	$	8	$	—	$	63	$	—	$	135	$	—	$	238
Marine loans
Pass	$	—	$	68,970	$	110,481	$	30,011	$	633	$	—	$	—	$	—	$	210,095
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	68,970	$	110,481	$	30,011	$	633	$	—	$	—	$	—	$	210,095
Current period gross charge-offs	$	—	$	1,371	$	199	$	208	$	—	$	—	$	—	$	—	$	1,778


Consumer loans
Pass	$	2,700	$	1,987	$	10,787	$	5,274	$	7,221	$	1,117	$	1,834	$	13	$	30,933
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		84		—		—		—		—		84
Total	$	2,700	$	1,987	$	10,787	$	5,358	$	7,221	$	1,117	$	1,834	$	13	$	31,017
Current period gross charge-offs	$	—	$	13	$	4	$	47	$	167	$	—	$	78	$	—	$	309
Overdrafts
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Special Mention		—		—		—		—		—		—		—		—		—
Classified		309		—		—		—		—		—		—		—		309
Total	$	309	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	309
Current period gross charge-offs	$	141	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	141
Other loans
Pass	$	—	$	54	$	9,500	$	—	$	—	$	2,281	$	76	$	—	$	11,911
Special Mention		—		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—		—
Total	$	—	$	54	$	9,500	$	—	$	—	$	2,281	$	76	$	—	$	11,911
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total by Risk Category
Pass	$	157,723	$	255,712	$	398,368	$	189,209	$	148,122	$	143,918	$	101,057	$	11,888	$	1,405,997
Special Mention		456		9,559		5,749		16,075		1,516		16,448		192		86		50,081
Classified		309		903		—		823		—		641		—		1,842		4,518
Total	$	158,488	$	266,174	$	404,117	$	206,107	$	149,638	$	161,007	$	101,249	$	13,816	$	1,460,596
Total current period gross charge-offs	$	141	$	1,416	$	211	$	405	$	230	$	214	$	227	$	—	$	2,844

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 Income. 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.

During the three and nine months ended September 30, 2025, a reduction to the unfunded commitment reserve of $19 thousand and $120 thousand, respectively, was recorded as a credit to the provision for credit losses in the consolidated statement of income. During the three months ended September 30, 2024, an increase to the unfunded commitment reserve of $19 thousand was recorded, thereby increasing the provision for credit losses in the consolidated income statement. During the nine months ended September 30, 2024, a decrease of $115 thousand was recorded to the provision for credit losses, thereby reducing the unfunded commitment reserve. The reserve for unfunded commitments at September 30, 2025 and 2024 and December 31, 2024 was $385 thousand, $364 thousand, and $505 thousand, respectively.

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. The following table presents the amortized cost of loans that were modified during the three and nine months ended September 30, 2025 by loan portfolio segment. There were no loan modifications to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024.

This balance is one relationship comprised of three residential multifamily income producing properties in Washington D.C. (the District), and the Bank has been granted receivership. 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 and are 90 or more days past due.

There were no loans to borrowers experiencing financial difficulty that had a payment default during the three and nine months ended September 30, 2024 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.