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What changed in Fifth District Bancorp, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Fifth District Bancorp, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+178 added−155 removedSource: 10-K (2026-03-24) vs 10-K (2025-03-26)

Top changes in Fifth District Bancorp, Inc.'s 2025 10-K

178 paragraphs added · 155 removed · 145 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

65 edited+12 added−3 removed200 unchanged
Biggest changeBecause the tables present contractual maturities and do not reflect repricing or the effect of prepayments, actual maturities may differ. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Four-Family ​ Construction ​ Commercial ​ Home Equity ​ ​ ​ ​ ​ ​ ​ ​ Residential ​ and Land ​ and ​ Lines of ​ ​ ​ ​ ​ ​ ​ Real Estate Development Industrial Credit Consumer Total ​ (In thousands) Amounts due in: ​ ​ ​ ​ ​ ​ One year or less ​ $ 78 ​ $ 6,173 ​ $ 9 ​ $ 176 ​ $ 15 ​ $ 6,451 After one year through two years ​ 144 ​ 641 ​ 126 ​ 376 ​ — ​ 1,287 After two years through three years ​ 479 ​ 336 ​ — ​ 662 ​ — ​ 1,477 After three years through five years ​ 842 ​ 12 ​ 882 ​ 761 ​ 526 ​ 3,023 After five years through 10 years ​ 15,669 ​ 185 ​ 9,150 ​ 5,797 ​ 2,129 ​ 32,930 After 10 years through 15 years ​ 31,139 ​ 43 ​ 3,656 ​ 180 ​ 140 ​ 35,158 After 15 years ​ 284,308 ​ 2,198 ​ 532 ​ — ​ 889 ​ 287,927 Total ​ $ 332,659 ​ $ 9,588 ​ $ 14,355 ​ $ 7,952 ​ $ 3,699 ​ $ 368,253 ​ The following table sets forth our fixed and adjustable-rate loans at December 31, 2024 that are contractually due after December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due After December 31, 2025 ​ Fixed Adjustable Total ​ ​ (In thousands) Real estate loans: ​ ​ ​ One- to four-family residential ​ $ 332,659 ​ $ — ​ $ 332,659 Construction and land development ​ 9,588 ​ — ​ 9,588 Commercial and industrial loans ​ 14,355 ​ — ​ 14,355 Home equity lines of credit ​ — ​ 7,952 ​ 7,952 Consumer loans ​ 3,699 ​ — ​ 3,699 Total loans ​ $ 360,301 ​ $ 7,952 ​ $ 368,253 ​ 6 Table of Contents One- to Four-Family Residential Mortgage Lending .
Biggest changeBecause the tables present contractual maturities and do not reflect repricing or the effect of prepayments, actual maturities may differ. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One-to- ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Four Family ​ Home Equity ​ Construction and ​ Commercial ​ ​ Commercial and ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgages ​ ​ ​ Lines of Credit ​ ​ ​ Land ​ ​ ​ Real Estate ​ ​ ​ Industrial ​ ​ ​ ​ Consumer ​ ​ ​ Total ​ (In thousands) Amounts due in: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One year or less ​ $ 9 ​ $ 368 ​ $ 10,350 ​ $ — ​ $ 70 ​ $ 16 ​ $ 10,813 After one year through two years ​ 236 ​ 735 ​ 216 ​ — ​ — ​ — ​ 1,187 After two years through three years ​ 158 ​ 308 ​ 23 ​ — ​ — ​ 38 ​ 527 After three years through five years ​ 2,227 ​ 1,083 ​ 1,159 ​ 9,337 ​ 2,148 ​ 709 ​ 16,663 After five years through 10 years ​ 20,837 ​ 7,372 ​ 138 ​ 743 ​ 8,799 ​ 2,449 ​ 40,338 After 10 years through 15 years ​ 24,978 ​ 225 ​ 108 ​ 467 ​ 2,694 ​ 132 ​ 28,604 After 15 years ​ 277,329 ​ — ​ 544 ​ — ​ 516 ​ 845 ​ 279,234 Total ​ $ 325,774 ​ $ 10,091 ​ $ 12,538 ​ $ 10,547 ​ $ 14,227 ​ $ 4,189 ​ $ 377,366 ​ The following table sets forth our fixed and adjustable-rate loans at December 31, 2025 that are contractually due after December 31, 2026. ​ 6 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Due After December 31, 2026 ​ ​ ​ ​ Fixed ​ ​ ​ Adjustable ​ ​ ​ Total ​ ​ (In thousands) One-to-four family mortgages ​ $ 325,765 ​ $ — ​ $ 325,765 Home equity lines of credit ​ ​ — ​ ​ 9,723 ​ ​ 9,723 Construction and land ​ ​ 2,188 ​ ​ — ​ ​ 2,188 Commercial real estate ​ ​ 10,547 ​ ​ — ​ ​ 10,547 Commercial and industrial ​ ​ 14,157 ​ ​ — ​ ​ 14,157 Consumer loans ​ 4,173 ​ — ​ 4,173 Total loans ​ $ 356,830 ​ $ 9,723 ​ $ 366,553 ​ One- to Four-Family Residential Mortgage Lending .
Competition We face strong competition within our primary market area both in making loans and attracting retail deposits. Our market area includes large money center banks and regional banks, community banks and savings institutions, and credit unions.
Competition We face strong competition within our primary market area both in making loans and attracting retail deposits. Our market area includes large money center banks, regional banks, community banks, savings institutions, and credit unions.
We also face competition for loans from mortgage banking firms, consumer finance companies, credit unions, and fintech companies and also face competition for deposits from money market funds, brokerage firms, mutual funds and insurance companies.
We also face competition for loans from mortgage banking firms, consumer finance companies, credit unions, and fintech companies we face competition for deposits from money market funds, brokerage firms, mutual funds and insurance companies.
Our one- to four-family residential real estate loans are underwritten to Fifth District policy guidelines. We do not offer adjustable rate residential mortgage loans. We offer fixed-rate residential mortgage loans for 10-year and 15-year. terms The interest rate is determined primarily by reference to market conditions and competitive factors.
Our one- to four-family residential real estate loans are underwritten to Fifth District credit policy guidelines. We do not offer adjustable rate residential mortgage loans. We offer fixed-rate residential mortgage loans for 10-year and 15-year terms The interest rate is determined primarily by reference to market conditions and competitive factors.
To a substantially lesser extent, we also originate construction loans (residential and commercial), home equity loans, home equity lines of credit, land loans, commercial real estate loans, commercial and industrial loans, and share loans (loans secured by deposit accounts at Fifth District) and purchase commercial business loans.
To a substantially lesser extent, we also originate construction loans (residential and commercial), home equity loans, home equity lines of credit, land loans, commercial real estate loans, commercial and industrial loans, and share loans (loans secured by deposit accounts at Fifth District) and purchase consumer and commercial business loans.
At December 31, 2024, except for loans included in the above table, there were no other loans of concern for which we had information about possible credit problems of borrowers that caused us to have serious doubts about the ability of the borrowers to comply with present loan repayment terms and that may result in disclosure of such loans in the future.
At December 31, 2025, except for loans included in the above table, there were no other loans of concern for which we had information about possible credit problems of borrowers that caused us to have serious doubts about the ability of the borrowers to comply with present loan repayment terms and that may result in disclosure of such loans in the future.
At December 31, 2024, we also owned $350,000 of First National Bankers Bank stock, which is carried at cost and classified as a restricted investment. For additional information regarding our investment securities portfolio, see note 2 to the notes to consolidated financial statements. Sources of Funds General.
At December 31, 2025, we also owned $350,000 of First National Bankers Bank stock, which is carried at cost and classified as a restricted investment. For additional information regarding our investment securities portfolio, see note 2 to the notes to consolidated financial statements. Sources of Funds General.
Savings associations deemed by the OCC to be “critically undercapitalized” would be subject to the appointment of a receiver or conservator. At December 31, 2024, Fifth District met the criteria for being considered “well capitalized.” For further information, see note 10 to the notes to consolidated financial statements. Insurance of Deposit Accounts.
Savings associations deemed by the OCC to be “critically undercapitalized” would be subject to the appointment of a receiver or conservator. At December 31, 2025, Fifth District met the criteria for being considered “well capitalized.” For further information, see note 10 to the notes to consolidated financial statements. Insurance of Deposit Accounts.
As such, it is grouped with any other capital losses for the year to which it is carried and is used to offset any capital gains. Any undeducted loss remaining after the five-year carryover period is not deductible. At December 31, 2024, Fifth District had no capital loss carryovers. Corporate Dividends.
As such, it is grouped with any other capital losses for the year to which it is carried and is used to offset any capital gains. Any undeducted loss remaining after the five-year carryover period is not deductible. At December 31, 2025, Fifth District had no capital loss carryovers. Corporate Dividends.
Tammany Parish, with a deposit market share of 0.36%. Our ability to compete in our primary market area does not depend on any existing relationships. Lending Activities General. Our loan portfolio consists primarily of fixed-rate one-to four-family residential mortgage loans.
Tammany Parish, with a deposit market share of 0.39%. Our ability to compete in our primary market area does not depend on any existing relationships. Lending Activities General. Our loan portfolio consists primarily of fixed-rate one-to four-family residential mortgage loans.
The following table sets forth the contractual maturities of our total loan portfolio at December 31, 2024. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less.
The following table sets forth the contractual maturities of our total loan portfolio at December 31, 2025. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less.
Based on redemption provisions of the Federal Home Loan Bank of Dallas, the stock has no quoted market value and is carried at cost. Fifth District reviews for impairment, based on the ultimate recoverability, the cost basis of the Federal Home Loan Bank of Fifth District stock. At December 31, 2024, no impairment was recognized.
Based on redemption provisions of the Federal Home Loan Bank of Dallas, the stock has no quoted market value and is carried at cost. Fifth District reviews for impairment, based on the ultimate recoverability, the cost basis of the Federal Home Loan Bank of Fifth District stock. At December 31, 2025, no impairment was recognized.
The refundable portion is 50% (100% in 2021) of the excess of the minimum tax credit for the year over any credit allowable against regular tax for that year. At December 31, 2024, Fifth District had no minimum tax credit carryforward. Net Operating Loss Carryovers.
The refundable portion is 50% (100% in 2021) of the excess of the minimum tax credit for the year over any credit allowable against regular tax for that year. At December 31, 2025, Fifth District had no minimum tax credit carryforward. Net Operating Loss Carryovers.
Control, as defined under federal law, means ownership, control of or holding irrevocable proxies representing more than 25% of any class of voting stock, control in any manner of the election of a majority of the institution’s directors, or a determination by the regulator that the acquiror has the power, directly or indirectly, to exercise a controlling influence over the management or policies of the institution.
Control, 24 Table of Contents as defined under federal law, means ownership, control of or holding irrevocable proxies representing more than 25% of any class of voting stock, control in any manner of the election of a majority of the institution’s directors, or a determination by the regulator that the acquiror has the power, directly or indirectly, to exercise a controlling influence over the management or policies of the institution.
Loans that do not share risk characteristics are measured on an individual basis. When a borrower is experiencing financial difficulty and repayment is expected to be provided through the operation or sale of the collateral, the expected credit loss is based on the fair value of collateral at the reporting date, adjusted for costs to sell.
Loans that do not share risk characteristics are measured on an individual basis. When a borrower is experiencing financial difficulty and repayment is expected to be provided through the operation or sale of the 12 Table of Contents collateral, the expected credit loss is based on the fair value of collateral at the reporting date, adjusted for costs to sell.
We also generally require inspections of the property before disbursement of funds during the term of the construction loan. One of our directors, H. Greg Abry, who has substantial experience in the construction and real estate industries, performs property inspections. We also make a limited amount of land development loans to complement our construction lending activities.
We also generally require inspections of the property before disbursement of funds during the term of the construction loan. One of our directors, H. Greg Abry, who has substantial experience in the construction and real estate industries, performs property inspections. 7 Table of Contents We also make a limited amount of land development loans to complement our construction lending activities.
Advances may be made under several different credit programs, each of which has its own interest rate and range of maturities. At December 31, 2024, we had $-0- in outstanding advances.
Advances may be made under several different credit programs, each of which has its own interest rate and range of maturities. At December 31, 2025, we had $-0- in outstanding advances.
At December 31, 2024, Fifth District complied with the loans-to-one borrower limitations. Qualified Thrift Lender Test. As a federal savings association, Fifth District must satisfy the qualified thrift lender, or “QTL,” test.
At December 31, 2025, Fifth District complied with the loans-to-one borrower limitations. Qualified Thrift Lender Test. As a federal savings association, Fifth District must satisfy the qualified thrift lender, or “QTL,” test.
Members of the Federal Home Loan Bank of Dallas are required to acquire and hold shares of capital stock in the Federal Home Loan Bank of Dallas. Fifth District complied with this requirement at December 31, 2024.
Members of the Federal Home Loan Bank of Dallas are required to acquire and hold shares of capital stock in the Federal Home Loan Bank of Dallas. Fifth District complied with this requirement at December 31, 2025.
If the appraised value of a completed project proves to be overstated, the loan may be inadequately secured, and we may incur a loss. Land development loans have substantially similar risks with respect to estimating the market value of the collateral property. Commercial and Industrial Loans.
If the appraised value of a completed project proves to be overstated, the loan may be inadequately secured, and we may incur a loss. Land development loans have substantially similar risks with respect to estimating the market value of the collateral property. Commercial Real Estate Loans .
We also purchase from third party originators or investors the fully guaranteed portion of commercial and industrial loans that are guaranteed by U.S. government agencies, such as the U.S. Department of Agriculture and the U.S. Small Business Administration, among others. As of December 31, 2024, these purchased loans totaled $3.6 million. Home Equity Loans and Lines of Credit.
We also purchase from third party originators or investors the fully guaranteed portion of commercial and industrial loans that are guaranteed by U.S. government agencies, such as the U.S. Department of Agriculture and the U.S. Small Business Administration, among others. As of December 31, 2025, these purchased loans totaled $2.3 million. Home Equity Loans and Lines of Credit.
At December 31, 2024, we also had a $27.2 million credit facility and a $15 million credit facility with two correspondent banks, with no outstanding balance under either facility at that date. Human Capital Resources As of December 31, 2024, we had 67 full-time employees and 1 part-time employee. Our employees are not represented by any collective bargaining group.
At December 31, 2025, we also had a $27.2 million credit facility and a $15 million credit facility with two correspondent banks, with no outstanding balance under either facility at that date. Human Capital Resources As of December 31, 2025, we had 66 full-time employees and 1 part-time employee. Our employees are not represented by any collective bargaining group.
We conduct our business from our main office and six branch offices located in the Parishes of Jefferson, Orleans, and St. Tammany. Our loan portfolio consists primarily of fixed-rate one- to four-family residential mortgage loans that we have originated.
We conduct our business from our main office and six branch offices located in the Parishes of Jefferson, Orleans, and St. Tammany. Our loan portfolio consists primarily of fixed-rate one-to four-family residential mortgage loans.
At December 31, 2024 and December 31, 2023, the aggregate amount of all uninsured certificates of deposit was $48.3 million and $42.2 million, respectively. 15 Table of Contents At December 31, 2024 and December 31, 2023, we had no deposits that were uninsured for any reason other than being in excess of the Federal Deposit Insurance Corporation limit.
At December 31, 2025 and December 31, 2024, the aggregate amount of all uninsured certificates of deposit was $50.2 million and $48.3 million, respectively. 15 Table of Contents At December 31, 2025 and December 31, 2024, we had no deposits that were uninsured for any reason other than being in excess of the Federal Deposit Insurance Corporation limit.
At December 31, 2024, our investment securities portfolio consisted of U.S. government agency securities, mortgage-backed securities issued by U.S. government-sponsored enterprises, and collateralized mortgage obligations. 14 Table of Contents At December 31, 2024, we also owned $560,000 of Federal Home Loan Bank of Dallas stock.
At December 31, 2025, our investment securities portfolio consisted of U.S. government agency securities, mortgage-backed securities issued by U.S. government-sponsored enterprises, and collateralized mortgage obligations. 14 Table of Contents At December 31, 2025, we also owned $585,000 of Federal Home Loan Bank of Dallas stock.
Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell. At December 31, 2024, we had $42,000 of real estate acquired as a result of foreclosure or by deed in lieu of foreclosure. Modifications Made to Borrowers Experiencing Financial Difficulty.
Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell. At December 31, 2025, we had $42,000 of real estate acquired as a result of foreclosure or by deed in lieu of foreclosure. 10 Table of Contents Modifications Made to Borrowers Experiencing Financial Difficulty.
Generally, loans 90 days or more past due are placed on nonaccrual status and classified “substandard.” Our classified and special mention assets at the dates indicated were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ 2024 2023 ​ ​ (In thousands) Substandard assets ​ $ 1,075 ​ $ 153 Total classified assets ​ $ 1,075 ​ $ 153 Special mention assets ​ $ 3,924 ​ $ 2,690 Real Estate Owned ​ $ 42 ​ $ 42 ​ Other Loans of Concern.
Generally, loans 90 days or more past due are placed on nonaccrual status and classified “substandard.” Our classified and special mention assets at the dates indicated were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (In thousands) Substandard assets ​ $ 1,251 ​ $ 1,075 Total classified assets ​ $ 1,251 ​ $ 1,075 Special mention assets ​ $ 2,006 ​ $ 3,924 Real Estate Owned ​ $ 42 ​ $ 42 ​ Other Loans of Concern.
Loan Underwriting Risks One- to Four-Family Residential Mortgage Loans. Our one- to four-family residential loans are generally made on the basis of the borrower’s ability to make repayment from his or her employment or other income, and on the appraised value of the underlying real estate.
Our one- to four-family residential loans are generally made on the basis of the borrower’s ability to make repayment from his or her employment or other income, and on the appraised value of the underlying real estate.
General allowances represent allowances which have been established to cover accrued losses associated with lending activities 11 Table of Contents that were both probable and reasonable to estimate, but which, unlike specific allowances, have not been allocated to particular problem assets.
General allowances represent allowances which have been established to cover accrued losses associated with lending activities that were both probable and reasonable to estimate, but which, unlike specific allowances, have not been allocated to particular problem assets.
We estimate that the typical loan purchased from BHG has an outstanding balance of approximately $120,000 and a maximum term of 12 years at the time of purchase. As of December 31, 2024, no BHG purchased loans were delinquent. At December 31, 2024, our largest BHG purchased loan totaled $387,000 and it was performing according to its original terms.
We estimate that the typical loan purchased from BHG has an outstanding balance of approximately $150,000 and a maximum term of 12 years at the time of purchase. As of December 31, 2025, no BHG purchased loans were delinquent. At December 31, 2025, our largest BHG purchased loan totaled $329,000 and it was performing according to its original terms.
Generally, a corporation may carry forward net operating losses generated in tax years beginning after December 31, 2017 indefinitely and can offset up to 80% of taxable income. At December 31, 2024, Fifth District no net operating loss carryforwards. Capital Loss Carryovers.
Generally, a corporation may carry forward net operating losses generated in tax years beginning after December 31, 2017 indefinitely and can offset up to 80% of taxable income. At December 31, 2025, Fifth District $896,000 in net operating loss carryforwards. Capital Loss Carryovers.
At December 31, 2024, Fifth District complied with the qualified thrift lender test, with a percentage of qualified thrift investments to total assets of approximately 105.9%. Capital Distributions. Federal regulations govern capital distributions by a federal savings association, which include cash dividends, stock repurchases and other transactions charged to its capital account.
At December 31, 2025, Fifth District complied with the qualified thrift lender test, with a percentage of qualified thrift investments to total assets of approximately 101.3%. Capital Distributions. Federal regulations govern capital distributions by a federal savings association, which include cash dividends, stock repurchases and other transactions charged to its capital account.
At December 31, 2024, based on available collateral and our ownership of Federal Home Loan Bank of Dallas common stock, we had access to up to $183.1 million of advances. For further information, see note 8 of the notes to consolidated financial statements.
At December 31, 2025, based on available collateral and our ownership of Federal Home Loan Bank of Dallas common stock, we had access to up to $188.7 million of advances. For further information, see note 8 of the notes to consolidated financial statements.
These modifications are made only when a workout plan has been agreed to by the borrower that we believe is reasonable and attainable and in our best interests. At December 31, 2024, we had no modified loans. 10 Table of Contents Delinquent Loans .
These modifications are made only when a workout plan has been agreed to by the borrower that we believe is reasonable and attainable and in our best interests. At December 31, 2025, we had no modified loans. Delinquent Loans .
At December 31, 2024, home equity loans and lines of credit totaled $8.0 million, or 2.2% of total loans. Home equity loans are generally fixed-rate loans for terms of 5, 10, or 15 years. Home equity lines of credit generally provide for a 10-year draw period with a 15-year payback period.
At December 31, 2025, home equity loans and lines of credit totaled $10.1 million, or 2.7% of total loans. Home equity loans are generally fixed-rate loans for terms of 5, 10, or 15 years. Home equity lines of credit generally provide for a 10-year draw period with a 15-year payback period.
At December 31, 2024, Fifth District maintained approximately 105.9% of its portfolio assets in qualified thrift investments and complied with the qualified thrift lender requirement. Federal Securities Laws Fifth District Bancorp common stock is registered with the Securities and Exchange Commission.
At December 31, 2025, Fifth District maintained approximately 101.3% of its portfolio assets in qualified thrift investments and complied with the qualified thrift lender requirement. Federal Securities Laws Fifth District Bancorp common stock is registered with the Securities and Exchange Commission.
Residential construction loans generally can be made with a maximum loan-to-value ratio of 80% of the estimated appraised market value upon completion of the project. Before making a commitment to fund a construction loan, we require an appraisal of the property by an independent licensed appraiser.
Residential construction loans generally can be made with a maximum loan-to-value ratio of 80% of the estimated appraised market value upon completion of the project or total project cost, whichever is the lower of the two. Before making a commitment to fund a construction loan, we require an appraisal of the property by an independent licensed appraiser.
At June 30, 2024 (the most recent date for which Federal Deposit Insurance Corporation (the “FDIC”) is publicly available), we were ranked 11 th among the 25 FDIC-insured financial institutions with offices in Jefferson Parish, with a deposit market share of 1.63%; 9 th among the 22 FDIC-insured financial institutions with offices in Orleans Parish, with a deposit market share of 0.99%; and 22 nd among the 27 FDIC-insured financial institutions with offices in St.
At June 30, 2025 (the most recent date for which Federal Deposit Insurance Corporation (the “FDIC”) is publicly available), we were ranked 11 th among the 26 FDIC-insured financial institutions with offices in Jefferson Parish, with a deposit market share of 2.30%; 9 th among the 21 FDIC-insured financial institutions with offices in Orleans Parish, with a deposit market share of 0.89%; and 22 nd among the 27 FDIC-insured financial institutions with offices in St.
Our residential construction loans are underwritten to the same guidelines for permanent residential mortgage loans. At December 31, 2024, our largest residential construction loan amounted to $1.1 million, of which $760,000 had been disbursed.
Our residential construction loans are underwritten to the same guidelines for permanent residential mortgage loans. At December 31, 2025, our largest residential construction loan amounted to $1.8 million, of which $1.5 million had been disbursed.
We do not currently offer “subprime loans” on one- to four-family residential real estate loans ( i.e. , generally loans to borrowers with credit scores less than 620). Construction and Land Development Loans. At December 31, 2024, construction and land development loans totaled $9.6 million, or 2.6% of total loans, of which $1.7 million were land loans.
We do not currently offer “subprime loans” on one- to four-family residential real estate loans ( i.e. , generally loans to borrowers with credit scores less than 620). Construction and Land Development Loans. At December 31, 2025, construction and land development loans totaled $12.5 million, or 3.3% of total loans, of which $1.0 million were land loans.
The following table sets forth our loan delinquencies (including non-accrual loans), by type and amount at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2024 ​ 2023 ​ 30-59 60-89 90 Days 30-59 60-89 90 Days ​ ​ Days Past ​ Days Past ​ or More ​ Days Past ​ Days Past ​ or More ​ ​ Due ​ Due ​ Past Due ​ Due ​ Due ​ Past Due ​ ​ (In thousands) Real estate loans: ​ ​ ​ ​ ​ ​ One- to four-family residential ​ $ 2,925 ​ $ 1,011 ​ $ 956 ​ $ 2,655 ​ $ 1,524 ​ $ 1,103 Construction and land development ​ 332 ​ — ​ 119 ​ — ​ — ​ — Commercial and industrial loans ​ — ​ — ​ — ​ — ​ — ​ — Home equity lines of credit ​ — ​ — ​ — ​ — ​ 4 ​ — Consumer loans ​ 91 ​ — ​ — ​ 33 ​ — ​ — Total ​ $ 3,348 ​ $ 1,011 ​ $ 1,075 ​ $ 2,688 ​ $ 1,528 ​ $ 1,103 ​ Non-Performing Assets.
The following table sets forth our loan delinquencies (including non-accrual loans), by type and amount at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ 30-59 ​ ​ ​ 60-89 ​ ​ ​ 90 Days ​ ​ ​ 30-59 ​ ​ ​ 60-89 ​ ​ ​ 90 Days ​ ​ Days Past ​ Days Past ​ or More ​ Days Past ​ Days Past ​ or More ​ ​ Due ​ Due ​ Past Due ​ Due ​ Due ​ Past Due ​ ​ (In thousands) One-to-four family mortgages ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity lines of credit ​ $ 2,933 ​ $ 1,194 ​ $ 544 ​ $ 2,925 ​ $ 1,011 ​ $ 956 Construction and land ​ 72 ​ — ​ — ​ — ​ — ​ — Commercial real estate ​ 130 ​ — ​ — ​ 332 ​ — ​ 119 Commercial and industrial ​ — ​ — ​ — ​ — ​ — ​ — Consumer loans ​ ​ — ​ ​ — ​ ​ — ​ ​ 91 ​ ​ — ​ ​ — Total ​ $ 3,135 ​ $ 1,194 ​ $ 544 ​ $ 3,348 ​ $ 1,011 ​ $ 1,075 ​ Non-Performing Assets.
Land development loans are generally secured by lots that will be used for residential development. At December 31, 2024, our largest land loan had an outstanding balance of $328,000 and it was performing according to its original terms. Commercial and Industrial Loans. At December 31, 2024, commercial and industrial loans totaled $10.1 million, or 2.7% of total loans.
Land development loans are generally secured by lots that will be used for residential development. At December 31, 2025, our largest land loan had an outstanding balance of $130,000 and it was performing according to its original terms. Commercial Real Estate Loans . At December 31, 2025 commerical real estate loans totaled $10.5 million, or 2.8% of total loans.
There were no non-accruing loans made to borrowers experiencing financial difficulty as of December 31, 2023 included in non-accrual loans. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ 2024 2023 ​ ​ (Dollars in thousands) Non-accrual loans: ​ ​ ​ Real estate loans: ​ ​ ​ One- to four-family residential ​ $ 956 ​ $ 153 ​ Construction and land development ​ 119 ​ — ​ Commercial and industrial loans ​ — ​ — ​ Home equity lines of credit ​ — ​ — ​ Consumer loans ​ — ​ — ​ Total non-accrual loans ​ $ 1,075 ​ $ 153 ​ Accruing loans past due 90 days or more ​ ​ — ​ $ 950 ​ Real estate owned: ​ ​ ​ One- to four-family residential ​ — ​ — ​ Construction and land development ​ 42 ​ 42 ​ Total real estate owned ​ 42 ​ 42 ​ Total non-performing assets ​ $ 1,117 ​ $ 1,145 ​ Total non-performing loans to total loans ​ 0.29 % 0.30 % Total non-accruing loans to total loans ​ 0.29 % 0.04 % Total non-performing assets to total assets ​ 0.21 % 0.24 % ​ Classified Assets .
There were no non-accruing loans made to borrowers experiencing financial difficulty as of December 31, 2025 and 2024 included in non-accrual loans. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (Dollars in thousands) Non-accrual loans: ​ ​ ​ ​ ​ One-to-four family mortgages ​ $ 544 ​ $ 956 ​ Home equity lines of credit ​ ​ — ​ ​ — ​ Construction and land ​ ​ — ​ ​ 119 ​ Commercial real estate ​ ​ — ​ ​ — ​ Commercial and industrial ​ ​ — ​ ​ — ​ Consumer loans ​ — ​ — ​ Total non-accrual loans ​ $ 544 ​ $ 1,075 ​ Accruing loans past due 90 days or more ​ $ — ​ $ — ​ Real estate owned: ​ ​ ​ ​ ​ One-to-four family mortgages ​ — ​ — ​ Construction and land ​ 42 ​ 42 ​ Total real estate owned ​ 42 ​ 42 ​ Total non-performing assets ​ $ 586 ​ $ 1,117 ​ Total non-performing loans to total loans ​ 0.14 % 0.29 % Total non-accruing loans to total loans ​ 0.14 % 0.29 % Total non-performing assets to total assets ​ 0.11 % 0.21 % ​ 11 Table of Contents Classified Assets .
At December 31, 2024, one-to four-family residential mortgage loans totaled $332.7 million, or 90.3% of total loans. Our one- to four-family residential real estate loans are primarily secured by owner-occupied properties located in our primary market area. At December 31, 2024, one-to four-family residential mortgage loans secured by non-owner-occupied properties totaled $10.6 million.
At December 31, 2025, one-to four-family residential mortgage loans totaled $325.8 million, or 86.3% of total loans. Our one- to four-family residential real estate loans are primarily secured by owner-occupied properties located in our primary market area. At December 31, 2025, one-to four-family residential mortgage loans secured by non-owner-occupied properties totaled $9.6 million.
To a substantially lesser extent, we also originate construction loans, home equity loans, home equity lines of credit, land loans, and share loans (loans secured by deposit accounts at Fifth District) and purchase commercial business loans. We originate loans typically for retention in our portfolio.
To a substantially lesser extent, we also originate construction loans (residential and commercial), home equity loans, home equity lines of credit, land loans, commercial real estate loans, commercial and industrial loans, and share loans (loans secured by deposit accounts at Fifth District) and purchase consumer and commercial business loans. We typically retain in our portfolio the loans that we originate.
At December 31, 2024, the Company had total assets of $527.3 million, loans of $367.3 million, deposits of $391.5 million, and stockholders’ equity of $125.8 million. The Company’s principal office is located at 4000 General DeGaulle Drive, New Orleans, Louisiana 70114, and the telephone number at that address is (504) 362-7544. Our website address is www.fifthdistrict.com.
At December 31, 2025, the Company had total assets of $534.4 million, loans of $376.4 million, deposits of $393.2 million, and stockholders’ equity of $129.8 million. The Company’s principal office is located at 4000 General DeGaulle Drive, New Orleans, Louisiana 70114, and the telephone number at that address is (504) 362-7544. Our website address is www.fifthdistrict.com.
We typically do not sell the loans we originate but retain them in our loan portfolio, and do not sell the servicing rights. Loan Approval Procedures and Authority Our lending is subject to written, non-discriminatory underwriting standards and origination procedures. Decisions on loan applications are made on the basis of detailed applications submitted by the prospective borrower and property valuations.
Loan Approval Procedures and Authority Our lending is subject to written, non-discriminatory underwriting standards and origination procedures. Decisions on loan applications are made on the basis of detailed applications submitted by the prospective borrower and property valuations.
Additionally, the Board of Directors established individual and combined loan authorities for the President and CEO, Chief Credit Officer, Vice President of Lending, and Vice President of Loan Operations. All loans with a maximum potential exposure of $250,000 to $2 million are presented to the Board of Directors for ratification. The Board of Directors typically meets bi-monthly.
All loans with a maximum potential exposure greater than $2 million are submitted to Fifth District’s Board of Directors for approval. Additionally, the Board of Directors established individual and combined loan authorities for the President and CEO, Chief Credit Officer, Vice President of Lending, and Vice President of Loan Operations.
The following table sets forth the distribution of total deposits by account type at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2024 ​ 2023 ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ Amount ​ Percent ​ Rate ​ Amount ​ Percent ​ Average Rate ​ ​ (Dollars in thousands) Savings accounts ​ $ 76,020 19.42 % 0.10 % $ 84,603 21.69 % 0.11 % NOW accounts ​ 53,921 13.77 % 0.03 % 50,836 13.04 0.03 ​ Money market accounts ​ 22,726 5.81 % 0.51 % 26,417 6.77 0.69 ​ Certificates of deposit ​ 238,809 61.00 % 3.82 % 228,147 58.50 2.60 ​ Total ​ $ 391,476 100.00 % ​ $ 390,003 100.00 % ​ ​ At December 31, 2024 and December 31, 2023, the aggregate amount of all uninsured deposits (deposits in excess of the Federal Deposit Insurance limit of $250,000) was $27.1 million and $60.6 million, respectively.
The following table sets forth the distribution of total deposits by account type at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount ​ Percent ​ Rate ​ Amount ​ Percent ​ Average Rate ​ ​ (Dollars in thousands) Savings accounts ​ $ 76,419 19.44 % 0.10 % $ 76,020 19.42 % 0.10 % NOW accounts ​ 56,280 14.31 ​ 0.03 ​ 53,921 13.77 ​ 0.03 ​ Money market accounts ​ 20,729 5.27 ​ 0.50 ​ 22,726 5.81 ​ 0.51 ​ Certificates of deposit ​ 239,734 60.98 ​ 3.72 ​ 238,809 61.00 ​ 3.82 ​ Total ​ $ 393,162 100.00 % ​ ​ $ 391,476 100.00 % ​ ​ ​ At December 31, 2025 and December 31, 2024, the aggregate amount of all uninsured deposits (deposits in excess of the Federal Deposit Insurance limit of $250,000) was $91.5 million and $86.4 million, respectively.
The allowance for credit losses on loans allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2024 ​ 2023 ​ ​ ​ Percent of ​ ​ ​ Percent of ​ ​ ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ ​ in Each ​ Loans in ​ ​ ​ ​ in Each ​ Loans in ​ ​ Allowance ​ Category ​ Each ​ Allowance ​ Category ​ Each ​ ​ for Loan ​ to Total ​ Category ​ for Loan ​ to Total ​ Category ​ ​ and Lease ​ Allocated ​ to Total ​ and Lease ​ Allocated ​ to Total ​ ​ Losses ​ Allowance ​ Loans ​ Losses ​ Allowance ​ Loans ​ ​ (Dollars in thousands) Real estate loans: ​ ​ ​ One- to four-family residential ​ $ 1,526 90.19 % 90.34 % $ 2,554 91.94 % 91.83 % Construction and land development ​ 13 0.77 2.60 ​ 32 1.15 2.21 ​ Commercial and industrial loans ​ 80 4.73 3.90 ​ 126 4.54 3.38 ​ Home equity lines of credit ​ 45 2.66 2.16 ​ 57 2.05 2.33 ​ Consumer loans ​ 28 1.65 % 1.00 % 9 0.32 0.25 ​ Total allocated allowance ​ $ 1,692 100 % 100 % $ 2,778 100.00 % 100.00 % Unallocated allowance ​ 7 ​ ​ ​ 24 ​ Total allowance ​ $ 1,699 ​ ​ ​ $ 2,802 ​ ​ Although we believe that we use the best information available to establish the allowance for credit losses, future adjustments to the allowance for credit losses may be necessary and results of operations could be adversely affected if circumstances differ substantially from the assumptions used in making the determinations.
The allowance for credit losses on loans allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ Percent of ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percent of ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ Allowance ​ Percent of ​ ​ ​ ​ ​ in Each ​ Loans in ​ ​ ​ ​ in Each ​ Loans in ​ ​ ​ ​ Category ​ Each ​ ​ ​ Category ​ Each ​ ​ Allowance for ​ to Total ​ Category ​ Allowance for ​ to Total ​ Category ​ ​ Credit Losses ​ Allocated ​ to Total ​ Credit Losses ​ Allocated ​ to Total ​ ​ on Loans ​ Allowance ​ Loans ​ on Loans ​ Allowance ​ Loans ​ ​ (Dollars in thousands) One-to-four family mortgages ​ $ 1,202 90.24 % 86.34 % $ 1,392 88.94 % 90.34 % Home equity lines of credit ​ 42 3.15 2.67 ​ 44 2.81 2.16 ​ Construction and land ​ 22 1.65 3.32 ​ 7 0.45 2.60 ​ Commercial real estate ​ 32 2.40 2.79 ​ 4 0.26 0.16 ​ Commercial and industrial ​ 34 2.55 ​ 3.77 ​ 118 7.54 3.74 ​ Consumer loans ​ ​ — ​ — ​ 1.11 ​ ​ — ​ — ​ 1.00 ​ Total allocated allowance ​ $ 1,332 100.00 % 100.00 % $ 1,565 100.00 % 100.00 % Unallocated allowance ​ 367 ​ ​ ​ ​ 134 ​ ​ ​ Total allowance ​ $ 1,699 ​ ​ ​ ​ $ 1,699 ​ ​ ​ ​ Although we believe that we use the best information available to establish the allowance for credit losses, future adjustments to the allowance for credit losses may be necessary and results of operations could be adversely affected if circumstances differ substantially from the assumptions used in making the determinations.
Changes in factors used in evaluating the overall loan portfolio may result in significant changes in the allowance for credit losses and it is reasonably possible that management’s estimate of probable credit losses inherent in the loan portfolio and the related allowance may change materially in the near-term. 12 Table of Contents The following table sets forth activity in our allowance for loan and lease losses for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Years Ended ​ ​ December 31, ​ 2024 2023 ​ ​ (Dollars in thousands) Allowance for credit losses on loans at beginning of period ​ $ 2,802 ​ $ 3,253 ​ Recovery of credit losses on loans ​ (1,100) ​ (451) ​ Charge-offs: ​ ​ ​ Real estate loans: ​ ​ ​ One- to four-family residential ​ — ​ — ​ Construction and land development ​ — ​ — ​ Commercial and industrial loans ​ — ​ — ​ Home equity lines of credit ​ 3 ​ — ​ Consumer loans ​ — ​ — ​ Total charge-offs ​ 3 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Recoveries: ​ ​ ​ Real estate loans: ​ ​ ​ One- to four-family residential ​ — ​ — ​ Construction and land development ​ — ​ — ​ Commercial and industrial loans ​ — ​ — ​ Home equity lines of credit ​ — ​ — ​ Consumer loans ​ — ​ — ​ Total recoveries ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (charge-offs) recoveries ​ (3) ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses on loans at end of period ​ $ 1,699 ​ $ 2,802 ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses on unfunded commitments at beginning of period ​ — % — ​ Provision (recovery) for credit losses on unfunded commitments ​ (110) ​ 125 ​ Allowance for credit losses on unfunded commitments at end of period ​ 15 ​ 125 ​ Total allowance for credit losses ​ $ 1,714 ​ $ 2,927 ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses on loans as a percentage of non-performing loans at end of period ​ 158.05 % 254.03 % Allowance for credit losses on loans as a percentage of total loans outstanding at end of period ​ 0.46 % 0.76 % Net (charge-offs) recoveries as a percentage of average loans outstanding during period ​ — % — % 13 Table of Contents Allocation of Allowance for Credit Losses.
The following table sets forth activity in our allowance for loan and lease losses for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Years Ended ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (Dollars in thousands) Allowance for credit losses on loans at beginning of period ​ $ 1,699 ​ $ 2,802 ​ Recovery of credit losses on loans ​ — ​ (1,100) ​ Charge-offs: ​ ​ ​ ​ ​ One-to-four family mortgages ​ — ​ — ​ Home equity lines of credit ​ — ​ 3 ​ Construction and land ​ — ​ — ​ Commercial real estate ​ — ​ — ​ Commercial and industrial ​ — ​ — ​ Consumer loans ​ — ​ — ​ Total charge-offs ​ — ​ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ Recoveries: ​ ​ ​ ​ ​ One-to-four family mortgages ​ — ​ — ​ Home equity lines of credit ​ — ​ — ​ Construction and land ​ — ​ — ​ Commercial real estate ​ — ​ — ​ Commercial and industrial ​ — ​ — ​ Consumer loans ​ — ​ — ​ Total recoveries ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (charge-offs) recoveries ​ — ​ (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses on loans at end of period ​ $ 1,699 ​ $ 1,699 ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses on unfunded commitments at beginning of period ​ 15 ​ 125 ​ Provision (recovery) for credit losses on unfunded commitments ​ 10 ​ (110) ​ Allowance for credit losses on unfunded commitments at end of period ​ 25 ​ 15 ​ Total allowance for credit losses ​ $ 1,724 ​ $ 1,714 ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses on loans as a percentage of non-performing loans at end of period ​ 312.32 % 158.05 % Allowance for credit losses on loans as a percentage of total loans outstanding at end of period ​ 0.45 % 0.46 % Net (charge-offs) recoveries as a percentage of average loans outstanding during period ​ — % — % ​ 13 Table of Contents Allocation of Allowance for Credit Losses.
At December 31, 2024, our largest credit relationship to one borrower had an outstanding balance of $2.1 million and is secured by commercial and residential real estate.
At December 31, 2025, our largest credit relationship to one borrower had an outstanding balance of $4.4 million and is secured by commercial and residential real estate. At December 31, 2025, this loan was performing according to its original terms.
When making commercial and industrial loans, we consider the financial statements of the borrower, our lending history with the borrower, the debt service capabilities and global cash flows of the borrower and other guarantors, the projected cash flows of the business and the value of any collateral. 7 Table of Contents We are part of a network of community banks nationwide that purchase commercial and industrial loans from Bankers Healthcare Group, LLC (BHG).
When making commercial and industrial loans, we consider the financial statements of the borrower, our lending history with the borrower, the debt service capabilities and global cash flows of the borrower and other guarantors, the projected cash flows of the business and the value of any collateral.
We have not made speculative residential construction loans, which are construction loans to a builder where there is not a contract in place for the purchase of the home at the time the construction loan is originated. In the future, we may consider making speculative construction loans consistent with our loan policies should opportunities arise.
In the past, we did not make speculative residential construction loans, which are construction loans to a builder where there is not a contract in place for the purchase of the home at the time the construction loan is originated.
Fifth District Bancorp is subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934, as amended. Shares of common stock purchased by persons who are not affiliates of Fifth District Bancorp may be resold without registration.
Fifth District Bancorp is subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934, as amended.
At December 31, 2024, consumer loans totaled $3.7, or 1.0% of total loans, consisting of share loans and purchased Banker’s Healthcare Group loans. Share loans are loans fully secured by a deposit account at Fifth District. Bankers’ Healthcare Group (BHG) loans are consumer loans that we purchase. We do not originate automobile loans and other similar type consumer loans.
Share loans are loans fully secured by a deposit account at Fifth District. Bankers’ Healthcare Group (BHG) loans are consumer loans that we purchase. At December 31, 2025, BHG purchased consumer loans totaled $3.2 million. We do not originate automobile loans and other similar type consumer loans. Loan Underwriting Risks One- to Four-Family Residential Mortgage Loans.
The following table sets forth the maturity of our uninsured certificates of deposit at December 31, 2024. ​ ​ ​ ​ ​ ​ ​ At December 31, 2024 ​ (In thousands) Maturity Period: ​ Three months or less ​ $ 19,578 Over three through six months ​ 3,283 Over six through twelve months ​ 22,355 Over twelve months ​ 3,122 Total ​ $ 48,338 ​ Borrowings.
The following table sets forth the maturity of our uninsured certificates of deposit at December 31, 2025. ​ ​ ​ ​ ​ ​ ​ At December 31, 2025 ​ ​ ​ ​ (In thousands) Maturity Period: ​ ​ Three months or less ​ $ 19,203 Over three through six months ​ 20,099 Over six through twelve months ​ 10,247 Over twelve months ​ 681 Total ​ $ 50,230 ​ Borrowings.
Underwriting is focused on the borrowers’ financial strength, credit history and demonstrated ability to service the debt. 8 Table of Contents Construction lending involves additional risks when compared with permanent mortgage lending because funds are advanced upon the security of the project, which is of uncertain value before its completion.
Construction lending involves additional risks when compared with permanent mortgage lending because funds are advanced upon the security of the project, which is of uncertain value before its completion.
There were no loans held for sale at any date indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2024 ​ 2023 ​ Amount Percent Amount Percent ​ ​ (Dollars in thousands) Real Estate Loans: ​ ​ ​ One- to four-family residential ​ $ 332,659 90.34 % $ 337,056 91.83 % Construction and land development ​ 9,588 2.60 ​ 8,128 2.21 ​ Commercial and industrial loans ​ 14,355 3.90 ​ 12,403 3.38 ​ Home equity lines of credit ​ 7,952 2.16 ​ 8,550 2.33 ​ Consumer loans ​ 3,699 1.00 ​ 913 0.25 ​ ​ ​ 368,253 100.00 % 367,050 100.00 % Less: ​ ​ ​ Allowance for credit losses ​ (1,699) ​ (2,802) ​ Deferred loan costs ​ 779 ​ 790 ​ Loans receivable, net ​ $ 367,333 ​ $ 365,038 ​ ​ Contractual Maturities.
There were no loans held for sale at any date indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ ​ Amount ​ ​ ​ Percent ​ ​ (Dollars in thousands) One-to-four family mortgages ​ $ 325,774 86.34 % $ 332,659 90.34 % Home equity lines of credit ​ ​ 10,091 ​ 2.67 ​ ​ 7,952 ​ 2.16 ​ Construction and land ​ 12,538 3.32 ​ 9,588 2.60 ​ Commercial real estate ​ ​ 10,547 ​ 2.79 ​ ​ 594 ​ 0.16 ​ Commercial and industrial ​ 14,227 3.77 ​ 13,761 3.74 ​ Consumer loans ​ 4,189 1.11 ​ 3,699 1.00 ​ ​ ​ 377,366 100.00 % 368,253 100.00 % Less: ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses ​ (1,699) ​ ​ (1,699) ​ ​ Deferred loan costs ​ 724 ​ ​ 779 ​ ​ Loans receivable, net ​ $ 376,391 ​ ​ $ 367,333 ​ ​ ​ Contractual Maturities.
The interest rate for home equity lines of credit is based on the prime rate, with a floor rate of 4.25% and an annual lifetime ceiling rate of 18%. The loan to value ratio for home equity loans and lines of credit is generally up to 80%, accounting for any superior mortgage on the collateral property. Consumer Loans .
The interest rate for home equity lines of credit is based on the prime rate, with a floor rate of 6.25% and an annual lifetime ceiling rate of 18%.
Our construction loans are based upon estimates of costs and values associated with the completed project.
Our construction loans are based upon estimates of costs and values associated with the completed project. Underwriting is focused on the borrowers’ financial strength, credit history and demonstrated ability to service the debt.
As discussed above under “– Lending Activities – Commercial Loans,” we purchase loans from Bankers Healthcare Group, LLC and purchase the fully guaranteed portions of U.S. government agency loans from other banks and investors. Additionally, we purchase participation interest in loans originated by other banks located in our market area as well as from various capital partners.
Loan Originations, Purchases and Sales We originate loans through employee marketing and advertising efforts, our existing customer base, walk-in customers and referrals from customers. 9 Table of Contents As discussed above under “– Lending Activities – Commercial Loans,” we purchase loans from Bankers Healthcare Group, LLC and purchase the fully guaranteed portions of U.S. government agency loans from other banks and investors.
As of December 31, 2024, the aggregate balance of BHG purchased loans totaled $12.8 million. We have an internal policy of limiting the aggregate balance of BHG purchased loans to 15% of capital.
We are part of a network of community banks nationwide that purchase commercial and industrial loans from Bankers Healthcare Group, LLC (BHG). As of December 31, 2025, the aggregate balance of BHG purchased loans totaled $11.5 million. We have an internal policy of limiting the aggregate balance of BHG purchased loans to 15% of capital.
As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. Loan Originations, Purchases and Sales We originate loans through employee marketing and advertising efforts, our existing customer base, walk-in customers and referrals from customers.
As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself.
If Fifth District Bancorp meets the current public information requirements of Rule 144 under the Securities Act of 1933, each affiliate of Fifth District Bancorp that complies with the other conditions of Rule 144, including those that require the affiliate’s sale to be aggregated with those of other persons, would be able to sell in the public market, without registration, a number of shares not to exceed, in any three-month period, the greater of 1% of the outstanding shares of Fifth District Bancorp, or the average weekly volume of trading in the shares during the preceding four calendar weeks. 24 Table of Contents Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act of 2002 is intended to improve corporate responsibility, to provide for enhanced penalties for accounting and auditing improprieties at publicly traded companies and to protect investors by improving the accuracy and reliability of corporate disclosures required under the federal securities laws.
Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act of 2002 is intended to improve corporate responsibility, to provide for enhanced penalties for accounting and auditing improprieties at publicly traded companies and to protect investors by improving the accuracy and reliability of corporate disclosures required under the federal securities laws.
Removed
Substantially, these loans are purchased loans, as discussed below.
Added
We currently have one speculative residential construction loan in process with a builder whom with we have an established relationship and satisfactory history. We may consider making speculative construction loans consistent with our loan policies should opportunities arise.
Removed
At December 31, 2024, this loan was performing according to its original terms. 9 Table of Contents All loans with a maximum potential exposure greater than $2 million are submitted to Fifth District’s Board of Directors for approval.
Added
We offer commercial real estate loans to businesses for the purchase or refinance of commercial and other non-residential real estate. This includes 1 to 4 family investment properties, non-owner occupied multi-family properties, non-owner occupied commercial properties, and special use properties. ​ Our commercial real estate loans are underwritten to Fifth District credit policy guidelines.
Removed
Shares purchased by an affiliate of Fifth District Bancorp are subject to the resale restrictions of Rule 144 under the Securities Act of 1933.
Added
We typically offer a fixed rate for up to 5 years with amortization periods up to 25 years. The interest rate is determined primarily by reference to market conditions and competitive factors. We generally limit the loan-to-value ratios of our commercial real estate loans to 75% for non-owner occupied properties and 80% for owner-occupied properties. ​ Commercial and Industrial Loans.
Added
At December 31, 2025, commercial and industrial loans totaled $14.2 million, or 3.8% of total loans. Substantially, these loans are purchased loans, as discussed below.
Added
The loan to value ratio for home equity loans and lines of credit is generally up to 85%, accounting for any superior mortgage on the collateral property. 8 Table of Contents Consumer Loans . At December 31, 2025, consumer loans totaled $4.2, or 1.1% of total loans, consisting of share loans and purchased Banker’s Healthcare Group loans.
Added
Our commercial real estate loans are originated primarily based on the credit quality of the borrowers and secondarily on the collateral provided by borrower.
Added
These loans are generally made on the basis of the borrower’s ability to make repayment from the cash flows of the borrower’s business, the borrower’s lending history and personal financial statement, the global cash flows of the borrowers and other guarantors and the value of the subject property.
Added
Commercial real estate lending is sensitive to regional and local economic conditions, making loss levels difficult to predict.
Added
Declines in commercial real estate values could cause some of our commercial loans to become inadequately collateralized, which could expose us to great risk of loss if we seek to recover on defaulted loans by selling the real estate collateral. ​ Commercial and Industrial Loans.
Added
Additionally, we purchase participation interest in loans originated by other banks located in our market area as well as from various capital partners. We typically do not sell the loans we originate but retain them in our loan portfolio, and do not sell the servicing rights.
Added
All loans with a maximum potential exposure of $250,000 to $2 million are presented to the Board of Directors for ratification. The Board of Directors typically meets monthly.
Added
Changes in factors used in evaluating the overall loan portfolio may result in significant changes in the allowance for credit losses and it is reasonably possible that management’s estimate of probable credit losses inherent in the loan portfolio and the related allowance may change materially in the near-term.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThis committee includes the Information Security Officer (Senior VP of Operations), the Computer Systems Operation Manager, the virtual Chief Information Officer and other members of senior management. This committee generally meets quarterly to provide oversight of the risk management strategy, standards, policies, practices, controls, and mitigation and prevention efforts employed to manage security risks.
Biggest changeThis committee includes the Information Security Officer (Corporate Secretary), the Computer Systems Operation Manager, the virtual Chief Information Officer and other members of senior management. This committee generally meets quarterly to provide oversight of the risk management strategy, standards, policies, practices, controls, and mitigation and prevention efforts employed to manage security risks.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe following table sets forth information regarding our offices at December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ Leased or ​ Approximate Location ​ Owned ​ Year Acquired ​ Square Footage Main Office: 4000 General DeGaulle Drive ​ ​ ​ New Orleans, LA 70114 ​ ​ ​ ​ ​ ​ Orleans Parish ​ Owned ​ 1971 ​ 5,000 ​ ​ ​ ​ ​ ​ ​ Branch Offices: ​ ​ 850 Avenue D ​ ​ ​ Marrero, LA 70072 ​ ​ ​ ​ Jefferson Parish ​ Owned ​ 2024 ​ 3,500 ​ ​ ​ ​ ​ ​ ​ 2476 Barataria Boulevard ​ ​ ​ Marrero, LA 70072 ​ ​ ​ ​ ​ ​ Jefferson Parish ​ Owned ​ 1979 ​ 2,400 ​ ​ ​ ​ ​ ​ ​ 1317 Westbank Expressway ​ ​ ​ Westwego, LA 70094 ​ ​ ​ ​ ​ ​ Jefferson Parish ​ Owned ​ 1981 ​ 2,840 ​ ​ ​ ​ ​ ​ ​ 4526 W.
Biggest changeThe following table sets forth information regarding our offices at December 31, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Leased or ​ ​ ​ ​ ​ ​ ​ Approximate Location ​ Owned ​ Year Acquired ​ Square Footage Main Office: ​ ​ ​ 4000 General DeGaulle Drive ​ ​ ​ New Orleans, LA 70114 ​ ​ ​ ​ ​ ​ Orleans Parish ​ Owned ​ 1971 ​ 5,000 ​ ​ ​ ​ ​ ​ ​ Branch Offices: ​ ​ ​ 850 Avenue D ​ ​ ​ Marrero, LA 70072 ​ ​ ​ ​ ​ ​ Jefferson Parish ​ Owned ​ 2024 ​ 3,500 ​ ​ ​ ​ ​ ​ ​ 2476 Barataria Boulevard ​ ​ ​ Marrero, LA 70072 ​ ​ ​ ​ ​ ​ Jefferson Parish ​ Owned ​ 1979 ​ 2,400 ​ ​ ​ ​ ​ ​ ​ 1317 Westbank Expressway ​ ​ ​ Westwego, LA 70094 ​ ​ ​ ​ ​ ​ Jefferson Parish ​ Owned ​ 1981 ​ 2,840 ​ ​ ​ ​ ​ ​ ​ 4526 W.
ITEM 2. Properties At December 31, 2024, the net book value of our properties (including land, buildings and improvements, and furniture and fixtures) was $11.9 million.
ITEM 2. Properties At December 31, 2025, the net book value of our properties (including land, buildings and improvements, and furniture and fixtures) was $11.6 million.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. Legal Proceedings We are not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. At December 31, 2024, we were not involved in any legal proceedings, the outcome of which we believe would be material to our consolidated financial condition or results of operations. ​ ITEM 4.
Biggest changeITEM 3. Legal Proceedings We are not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. At December 31, 2025, we were not involved in any legal proceedings, the outcome of which we believe would be material to our consolidated financial condition or results of operations. ​ ITEM 4.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThere were no sales of unregistered equity securities during the quarter ended December 31, 2024. The Company did not repurchase any shares of its common stock during the quarter ended December 31, 2024. ​ ITEM 6. Reserved ​
Biggest changeThere were no sales of unregistered equity securities during the quarter ended December 31, 2025.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Fifth District Bancorp’s common stock is listed on the Nasdaq Capital Market under the symbol “FDSB.” As of December 31, 2024, we had 383 stockholders of record (excluding persons or entities holding stock in street name through various brokerage firms), and 5,559,473 shares of common stock outstanding.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Fifth District Bancorp’s common stock is listed on the Nasdaq Capital Market under the symbol “FDSB.” As of December 31, 2025, we had 345 stockholders of record (excluding persons or entities holding stock in street name through various brokerage firms), and 5,349,039 shares of common stock outstanding.
Added
The following table presents information regarding the Company’s stock repurchase activity during the quarter ended December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of ​ Maximum ​ ​ ​ ​ ​ ​ Shares ​ Number of Shares ​ ​ ​ ​ ​ ​ Purchased as ​ That May Yet be ​ ​ Total Number ​ Average Price ​ Part of Publicly ​ Purchased Under ​ ​ of Shares ​ Paid Per ​ Announced Plans ​ the Plans or Period ​ ​ ​ Purchased ​ ​ ​ Share ​ ​ ​ or Programs (1) ​ ​ ​ Programs October 1, 2025 through October 31, 2025 22,153 $ 13.54 22,153 497,071 November 1, 2025 through November 30, 2025 42,417 ​ 13.29 42,417 454,654 December 1, 2025 through December 31, 2025 109,141 ​ 14.31 109,141 345,513 Total ​ 173,711 ​ 13.72 ​ 173,711 ​ 345,513 (1) On August 25, 2025, the Company authorized a stock repurchase program for up to 555,947 shares of its common stock, representing 10% of shares then outstanding.
Added
The program was publicly announced on the same date. The Company intends to conduct the repurchases on the open market, including by means of a trading plan adopted under SEC Rule 10b5-1, subject to market conditions and other factors. There is no guarantee as to the number of shares that the Company may ultimately repurchase.
Added
The Company may suspend or discontinue the program at any time. ​ ITEM 6. Reserved ​

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeNet deferred loan fees/costs are immaterial. 35 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2024 ​ 2023 ​ ​ Average ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ Outstanding ​ ​ ​ ​ Average ​ Outstanding ​ ​ ​ ​ Average ​ ​ Balance Interest Yield/Rate Balance Interest Yield/Rate ​ ​ (Dollars in thousands) Interest-earning assets: ​ ​ ​ ​ ​ Cash and cash equivalents $ 28,246 ​ $ 1,418 5.02 % $ 14,479 ​ $ 578 3.99 % Investment securities available-for-sale 76,068 ​ 2,574 3.38 % 66,236 ​ 1,684 2.54 ​ Loans receivable, net 366,986 ​ 15,253 4.16 % 364,360 ​ 14,124 3.88 ​ Restricted stock 892 ​ 32 3.59 % 881 ​ 28 3.18 ​ Total interest-earning assets 472,192 ​ 19,277 4.08 % 445,956 ​ 16,414 3.68 ​ Noninterest-earning assets 32,576 ​ — — ​ 31,413 ​ — — ​ Total assets ​ $ 504,768 ​ — — ​ $ 477,369 ​ — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ Savings accounts ​ $ 80,656 ​ 81 0.10 % $ 84,339 ​ 95 0.11 % NOW accounts ​ 43,564 ​ 13 0.03 % 48,774 ​ 13 0.03 ​ Money market accounts ​ 23,565 ​ 120 0.51 % 26,256 ​ 182 0.69 ​ Certificates of deposit ​ 235,851 ​ 9,003 3.82 % 229,776 ​ 5,984 2.60 ​ Total interest-bearing deposits ​ 383,636 ​ 9,217 2.40 % 389,145 ​ 6,274 1.61 ​ Federal Home Loan Bank advances ​ 87 ​ 4 4.60 % 1,882 ​ 91 4.84 ​ Total interest-bearing liabilities ​ 383,723 ​ 9,221 2.40 % 391,027 ​ 6,365 1.63 ​ Noninterest-bearing demand deposits ​ 1,168 ​ — — ​ 1,364 ​ — — ​ Other noninterest-bearing liabilities ​ 10,110 ​ — — ​ 8,962 ​ — — ​ Total liabilities ​ 395,001 ​ — — ​ 401,353 ​ — — ​ Total stockholders' equity ​ 109,767 ​ — — ​ 76,016 ​ — — ​ Total liabilities and stockholders' equity ​ $ 504,768 ​ — — ​ 477,369 ​ — — ​ Net interest income ​ ​ — ​ $ 10,056 — ​ — ​ $ 10,049 — ​ Net interest rate spread (1) ​ — ​ — ​ 1.68 % — ​ — 2.05 % Net interest-earning assets (2) ​ $ 88,469 ​ — — ​ $ 54,929 ​ — — ​ Net interest margin (3) ​ — ​ — 2.13 % — ​ — 2.25 % Average interest-earning assets to interest-bearing liabilities ​ — ​ — 123.06 % — ​ — 114.05 % (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
Biggest changeNet deferred loan fees/costs are immaterial. 35 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2025 ​ 2024 ​ ​ Average ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ Outstanding ​ ​ ​ ​ Average ​ Outstanding ​ ​ ​ ​ Average ​ ​ Balance ​ Interest ​ Yield/Rate ​ Balance ​ Interest ​ Yield/Rate ​ ​ (Dollars in thousands) Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents $ 27,943 ​ $ 1,101 3.94 % $ 28,246 ​ $ 1,418 5.02 % Investment securities available-for-sale 98,902 ​ 4,083 4.13 ​ 76,068 ​ 2,574 3.38 ​ Loans receivable, net 376,887 ​ 16,841 4.47 ​ 366,986 ​ 15,253 4.16 ​ Restricted stock 920 ​ 33 3.59 ​ 892 ​ 32 3.59 ​ Total interest-earning assets 504,652 ​ 22,058 4.37 ​ 472,192 ​ 19,277 4.08 ​ Noninterest-earning assets 31,001 ​ ​ ​ ​ 32,576 ​ ​ ​ ​ Total assets ​ $ 535,653 ​ ​ ​ ​ $ 504,768 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Savings accounts ​ $ 77,186 ​ 77 0.10 % $ 80,656 ​ 81 0.10 % NOW accounts ​ 53,904 ​ 14 0.03 ​ 43,564 ​ 13 0.03 ​ Money market accounts ​ 21,172 ​ 106 0.50 ​ 23,565 ​ 120 0.51 ​ Certificates of deposit ​ 242,215 ​ 9,013 3.72 ​ 235,851 ​ 9,003 3.82 ​ Total interest-bearing deposits ​ 394,477 ​ 9,210 2.33 ​ 383,636 ​ 9,217 2.40 ​ Federal Home Loan Bank advances ​ — ​ — — ​ 87 ​ 4 4.60 ​ Total interest-bearing liabilities ​ 394,477 ​ 9,210 2.33 ​ 383,723 ​ 9,221 2.40 ​ Noninterest-bearing demand deposits ​ 1,697 ​ ​ ​ ​ 1,168 ​ ​ ​ ​ Other noninterest-bearing liabilities ​ 10,699 ​ ​ ​ ​ 10,110 ​ ​ ​ ​ Total liabilities ​ 406,873 ​ ​ ​ ​ 395,001 ​ ​ ​ ​ Total stockholders' equity ​ 128,780 ​ ​ ​ ​ 109,767 ​ ​ ​ ​ Total liabilities and stockholders' equity ​ $ 535,653 ​ ​ ​ ​ 504,768 ​ ​ ​ ​ Net interest income ​ ​ ​ ​ $ 12,848 ​ ​ ​ ​ $ 10,056 ​ ​ Net interest rate spread (1) ​ ​ ​ ​ ​ 2.04 % ​ ​ ​ 1.68 % Net interest-earning assets (2) ​ $ 110,175 ​ ​ ​ ​ $ 88,469 ​ ​ ​ ​ Net interest margin (3) ​ ​ ​ ​ 2.55 % ​ ​ ​ 2.13 % Average interest-earning assets to interest-bearing liabilities ​ ​ ​ ​ 127.93 % ​ ​ ​ 123.06 % (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. ​ Rate/Volume Analysis The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. ​ 36 Table of Contents Rate/Volume Analysis The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated.
(2) Represents net interest income as a percentage of average interest-earning assets. (3) Represents noninterest expenses divided by the sum of net interest income and noninterest income. ​ 34 Table of Contents Comparison of Financial Condition at December 31, 2024 and December 31, 2023 Total Assets.
(2) Represents net interest income as a percentage of average interest-earning assets. (3) Represents noninterest expenses divided by the sum of net interest income and noninterest income. ​ 34 Table of Contents Comparison of Financial Condition at December 31, 2025 and December 31, 2024 Total Assets.
Among the techniques we are using to manage interest rate risk are: ● maintaining capital levels that substantially exceed the thresholds for well-capitalized status under federal regulations; ● maintaining a high liquidity level; ● growing our core deposit accounts; and 39 Table of Contents ● managing our investment securities portfolio to reduce the average maturity and effective life of the portfolio.
Among the techniques we are using to manage interest rate risk are: ● maintaining capital levels that substantially exceed the thresholds for well-capitalized status under federal regulations; ● maintaining a high liquidity level; ● growing our core deposit accounts; and ● managing our investment securities portfolio to reduce the average maturity and effective life of the portfolio.
The primary impact of inflation on our operations is reflected in increased operating costs. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates, 42 Table of Contents generally, have a more significant impact on a financial institution’s performance than does inflation.
The primary impact of inflation on our operations is reflected in increased operating costs. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates, generally, have a more significant impact on a financial institution’s performance than does inflation.
The following table sets forth, as of December 31, 2024, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United States Treasury yield curve.
The following table sets forth, as of December 31, 2025, the calculation of the estimated changes in our EVE that would result from the designated immediate changes in the United States Treasury yield curve.
Realization of tax benefits depends on having sufficient taxable income, available tax loss carrybacks or credits, the reversal of taxable temporary differences and/or tax planning strategies within the reversal period, and that current tax law allows for the realization of recorded tax benefits.
Realization of tax benefits depends on having sufficient taxable income, available tax loss carrybacks or credits, the reversal of taxable temporary differences and/or tax planning strategies within the reversal period, and that current tax law allows for the realization of recorded tax benefits. Fair Value Measurements.
We typically retain in our portfolio the loans we originate. We offer a variety of deposit accounts including checking accounts, money market accounts, and certificates of deposit. Our results of operations depend primarily on our net interest income.
We typically retain in our portfolio the loans we originate. We offer a variety of deposit accounts including checking accounts, money market accounts, and certificates of deposit. 30 Table of Contents Our results of operations depend primarily on our net interest income.
The following table sets forth, at December 31, 2024, the calculation of the estimated changes in our net interest income that would result from the designated immediate changes in the United States Treasury yield curve.
Change in Net Interest Income. The following table sets forth, at December 31, 2025, the calculation of the estimated changes in our net interest income that would result from the designated immediate changes in the United States Treasury yield curve.
Highlights of our current business strategy include: ● Continue to focus on originating fixed-rate one- to four-family residential mortgage loans for retention in our portfolio. We are primarily a fixed-rate one- to four-family residential mortgage loan lender for borrowers in our primary market area. We do not offer adjustable-rate residential mortgage loans.
Highlights of our current business strategy include: ● Continue to focus on originating fixed-rate one- to four-family residential mortgage loans for retention in our portfolio. We are primarily a fixed-rate one- to four-family residential mortgage loan lender for borrowers in our primary market area.
Under the CECL methodology, the allowance for credit losses represents management’s estimate of lifetime credit losses in loans as of the balance sheet date using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.
Allowance for credit losses represents management’s estimate of lifetime credit losses in loans as of the balance sheet date using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Deferred Taxes.
The amount of dividends that Fifth District may declare and pay to Fifth District Bancorp is governed by applicable bank regulations. At December 31, 2024, Fifth District Bancorp (on an unconsolidated basis) had liquid assets of $21.8 million. At December 31, 2024, Fifth District was categorized as well-capitalized under regulatory capital guidelines.
The amount of dividends that Fifth District may declare and pay to Fifth District Bancorp is governed by applicable bank regulations. At December 31, 2025, Fifth District Bancorp (on an unconsolidated basis) had liquid assets of $19.2 million. At December 31, 2025, Fifth District was categorized as well-capitalized under regulatory capital guidelines.
(2) EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts. (3) Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets. (4) EVE Ratio represents EVE divided by the present value of assets.
(2) EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts. (3) Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.
Core deposits totaled $152.7 million, or 39.0% of total deposits, at December 31, 2024. ● Remain a community-oriented institution and rely on high quality service to maintain and build a loyal local customer base . We were established in 1926.
Core deposits totaled $153.4 million, or 39.0% of total deposits, at December 31, 2025. ● Remain a community-oriented institution and rely on high quality service to maintain and build a loyal local customer base . We were established in 1926.
Classified loans totaled $1.1 million at December 31, 2024, compared to $153,000 at December 31, 2023, and total past due greater than 30 days were $5.4 million and $5.3 million at those respective dates. As a percentage of nonperforming loans, the allowance for credit losses on loans was 158.0% at December 31, 2024, 254.0% at December 31, 2023. .
Classified loans totaled $1.3 million at December 31, 2025, compared to $1.1 at December 31, 2024, and total past due greater than 30 days were $4.9 million and $5.4 million at those respective dates. As a percentage of nonperforming loans, the allowance for credit losses on loans was 312.3% at December 31, 2025, 158.0% at December 31, 2024. .
At December 31, 2024, our nonperforming assets totaled $1.1 million, or 0.2% of total assets. ● Continue efforts to grow low-cost “core” deposits. We consider our core deposits to include all deposits other than certificates of deposit.
At December 31, 2025, our nonperforming assets totaled $586,000, or 0.1% of total assets. ● Continue efforts to grow low-cost “core” deposits. We consider our core deposits to include all deposits other than certificates of deposit.
The majority of the increase in certificates of deposit was driven by new customer activity and migration from lower yielding money markets and savings accounts. NOW accounts increased $3.1 million, or 6.1%, to $53.9 million at December 31, 2024, from $50.8 million at December 31, 2023.
The majority of the increase in certificates of deposit was driven by new customer activity and migration from lower yielding money markets and savings accounts. NOW accounts increased $2.4 million, or 4.4%, to $56.3 million at December 31, 2025, from $53.9 million at December 31, 2024.
The increase in net benefit is based on our evaluation of the adequacy of the allowance for credit losses throughout the reporting period. The recovery of credit losses on unfunded commitments was $110,000 for the year ended December 31, 2024 compared to a $125,000 provision on unfunded commitments for the year ended December 31, 2023.
The recovery of credit losses is based on our evaluation of the adequacy of the allowance for credit losses throughout the reporting period. The provision of credit losses on unfunded commitments was $10,000 for the year ended December 31, 2025 compared to a ($110,000) on unfunded commitments for the year ended December 31, 2024.
At December 31, 2024, $332.7 million, or 90.3% of our total loan portfolio, consisted of residential mortgage loans. We expect residential mortgage lending to remain our primary lending activity. ● Continue to moderately increase our commercial and industrial loan portfolio.
At December 31, 2025, $325.8 million, or 86.3% of our total loan portfolio, consisted of residential mortgage loans. We expect residential mortgage lending to remain our primary lending activity. ● Continue to moderately increase our commercial and industrial loan portfolio.
To a limited extent, we have originated and purchased commercial real estate loans, commercial and industrial loans, and loan participations from other lenders and investors. At December 31, 2024, $14.4 million, or 3.9% of our total loan portfolio, consisted of commercial real estate, commercial and industrial loans, and loan participations.
To a limited extent, we have originated and purchased commercial real estate loans, commercial and industrial loans, and loan participations from other lenders and investors. At December 31, 2025, $24.8 million, or 6.6% of our total loan portfolio, consisted of commercial real estate, commercial and industrial loans, and loan participations.
At December 31, 2024, we had $-0- of outstanding advances under the Bank Term Funding Program. At December 31, 2024, we had $-0- of outstanding advances from the Federal Home Loan Bank of Dallas.
At December 31, 2025, we had $-0- of outstanding advances under 41 Table of Contents the Bank Term Funding Program. At December 31, 2025, we had no outstanding advances from the Federal Home Loan Bank of Dallas.
We intend to grow our balance sheet organically on a managed basis, and the capital we are raising in the stock offering will enable us to increase our lending and investment capacity.
We intend to grow our balance sheet organically on a managed basis, and the capital we raised in the stock offering has enabled us to increase our lending and investment capacity.
Accordingly, our consolidated financial statements may not be comparable to companies that comply with such new or revised accounting standards. We consider the accounting policy for the allowance for credit losses to be our critical accounting policy. Effective January 1, 2023, we adopted CECL.
Accordingly, our consolidated financial statements may not be comparable to companies that comply with such new or revised accounting standards. We consider the following accounting policies to be our critical accounting policies: Allowance for Credit Losses.
The average balance of certificates of deposit increased from $229.8 million as of December 31, 2023, to $235.9 million as December 31, 2024, while over the same period the average balance of savings accounts decreased from $84.3 million to $80.7 million, and the average balance of money market accounts decreased from $26.3 million to $23.6 million. 38 Table of Contents Provision for Credit Losses .
The average balance of certificates of deposit increased from $235.9 million as of December 31, 2024, to $242.2 million as December 31, 2025, while over the same period the average balance of savings accounts decreased from $80.7 million to $77.2 million, and the average balance of money market accounts decreased from $23.6 million to $21.2 million. 38 Table of Contents Provision (Recovery) for Credit Losses .
The table above indicates that at December 31, 2024, we would have experienced a 13.56% decrease in net interest income in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 2.18% increase in net interest income in the event of an instantaneous 200 basis point decrease in market interest rates.
The table above indicates that at December 31, 2025, we would have experienced a 16.57% decrease in net interest income in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 5.59% increase in net interest income in the event of an instantaneous 200 basis point decrease in market interest rates.
Assets and liabilities that are measured at fair value using quoted prices in active markets (Level 1) do not require significant judgment while the valuation of assets and liabilities when quoted market prices are not available (Levels 2 and 3) may require significant judgment to assess whether observable or unobservable inputs for those assets and liabilities provide reasonable determination of fair value. ​ 32 Table of Contents Selected Financial Data The following selected financial data sets forth certain financial highlights of the Company and should be read in conjunction with the audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2024 ​ 2023 ​ ​ (In thousands) Selected Financial Condition Data: ​ Total assets ​ $ 527,307 ​ $ 480,797 Cash and cash equivalents ​ 37,916 ​ 19,306 Investment securities available-for-sale ​ 92,987 ​ 67,901 Loans receivable, net ​ 367,333 ​ 365,038 Premises and equipment, net ​ 11,923 ​ 12,475 Bank owned life insurance ​ 10,685 ​ 10,332 Deferred tax asset, net ​ 2,185 ​ 2,063 Deposits ​ 391,476 ​ 390,003 Federal Home Loan Bank advances ​ — ​ 4,000 Total equity capital ​ 125,775 ​ 77,798 ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2024 ​ 2023 ​ ​ (In thousands) Selected Operating Data: ​ Total interest and dividend income ​ $ 19,277 ​ $ 16,414 Total interest expense ​ 9,221 ​ 6,365 Net interest income ​ 10,056 ​ 10,049 Recovery of credit loan losses ​ (1,210) ​ (325) Net interest income after recovery of credit losses ​ 11,266 ​ 10,374 Total non-interest income ​ 11 ​ 973 Total non-interest expense ​ 12,713 ​ 10,401 Earnings (loss) before income taxes ​ (1,436) ​ 946 Provision (benefit) for income taxes ​ (358) ​ 149 Net income (loss) ​ $ (1,078) ​ $ 797 ​ 33 Table of Contents ​ ​ ​ ​ ​ ​ ​ At or For the Years Ended December 31, ​ 2024 2023 ​ ​ ​ ​ ​ ​ Performance Ratios: ​ ​ Return on average assets (0.21) % 0.17 % Return on average equity (0.98) ​ 1.05 ​ Interest rate spread (1) 1.68 ​ 2.05 ​ Net interest margin (2) 2.13 ​ 2.25 ​ Noninterest expense as a percentage of average assets 2.52 ​ 2.18 ​ Efficiency ratio (3) 126.28 ​ 91.66 ​ Average interest-earning assets as a percentage of average interest-bearing liabilities 126.06 ​ 114.05 ​ ​ ​ ​ ​ ​ ​ Capital Ratios (Bank only): ​ ​ Average equity as a percentage of average assets 21.75 % 15.92 % Total capital as a percentage of risk-weighted assets 43.89 ​ 35.33 ​ Tier 1 capital as a percentage of risk-weighted assets 43.22 ​ 34.15 ​ Common equity Tier 1 capital as a percentage of risk-weighted assets 43.22 ​ 34.15 ​ Tier 1 capital as a percentage of average assets 21.94 ​ 17.41 ​ ​ ​ ​ ​ ​ ​ Asset Quality Ratios: ​ ​ Allowance for credit losses on loans as a percentage of total loans 0.46 % 0.76 % Allowance for credit losses on loans as a percentage of non-performing loans 158.05 ​ 254.03 ​ Allowance for credit losses on loans as a percentage of non-accrual loans 158.05 ​ 1,831.52 ​ Non-accrual loans as a percentage of total loans 0.29 ​ 0.04 ​ Net recoveries (charge-offs) as a percentage of average outstanding loans — ​ — ​ Non-performing loans as a percentage of total loans 0.29 ​ 0.30 ​ Non-performing loans as a percentage of total assets 0.20 ​ 0.23 ​ Total non-performing assets as a percentage of total assets 0.21 ​ 0.24 ​ ​ ​ ​ ​ ​ ​ Other Data: ​ ​ Number of offices 7 7 ​ Number of full-time employees 67 64 ​ Number of part-time employees 1 1 ​ (1) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
Assets and liabilities that are measured at fair value using quoted prices in active markets (Level 1) do not require significant judgment while the valuation of assets and liabilities when quoted market prices are not available (Levels 2 and 3) may require significant judgment to assess whether observable or unobservable inputs for those assets and liabilities provide reasonable determination of fair value. ​ 32 Table of Contents Selected Financial Data The following selected financial data sets forth certain financial highlights of the Company and should be read in conjunction with the audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, ​ ​ 2025 ​ 2024 ​ ​ (In thousands) Selected Financial Condition Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ $ 534,394 ​ $ 527,307 Cash and cash equivalents ​ 33,852 ​ 37,916 Investment securities available-for-sale ​ 99,077 ​ 92,987 Loans receivable, net ​ 376,391 ​ 367,333 Premises and equipment, net ​ 11,636 ​ 11,923 Bank owned life insurance ​ 7,689 ​ 10,685 Deferred tax asset, net ​ 1,722 ​ 2,447 Deposits ​ 393,162 ​ 391,476 Federal Home Loan Bank advances ​ — ​ — Total stockholders' equity ​ 129,757 ​ 125,775 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2025 ​ 2024 ​ ​ (In thousands) Selected Operating Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total interest and dividend income ​ $ 22,058 ​ $ 19,277 Total interest expense ​ 9,210 ​ 9,221 Net interest income ​ 12,848 ​ 10,056 Provision for (Recovery of) credit losses ​ 10 ​ (1,210) Net interest income after provision for (recovery of) credit losses ​ 12,838 ​ 11,266 Total non-interest income ​ 4,430 ​ 11 Total non-interest expense ​ 13,083 ​ 12,713 Income (loss) before income taxes ​ 4,185 ​ (1,436) Provision (benefit) for income taxes ​ 97 ​ (358) Net income (loss) ​ $ 4,088 ​ $ (1,078) ​ 33 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Years Ended December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ Performance Ratios: ​ ​ ​ Return on average assets 0.76 % (0.21) % Return on average equity 3.17 ​ (0.98) ​ Interest rate spread (1) 2.04 ​ 1.68 ​ Net interest margin (2) 2.55 ​ 2.13 ​ Noninterest expense as a percentage of average assets 2.44 ​ 2.52 ​ Efficiency ratio (3) 75.72 ​ 126.28 ​ Average interest-earning assets as a percentage of average interest-bearing liabilities 127.93 ​ 123.06 ​ ​ ​ ​ ​ ​ ​ Capital Ratios (Bank only): ​ ​ ​ Average equity as a percentage of average assets 24.04 % 21.75 % Total capital as a percentage of risk-weighted assets 41.79 ​ 43.91 ​ Tier 1 capital as a percentage of risk-weighted assets 41.17 ​ 43.24 ​ Common equity Tier 1 capital as a percentage of risk-weighted assets 41.17 ​ 43.24 ​ Tier 1 capital as a percentage of average assets 21.07 ​ 20.78 ​ ​ ​ ​ ​ ​ ​ Asset Quality Ratios: ​ ​ ​ Allowance for credit losses on loans as a percentage of total loans 0.45 % 0.46 % Allowance for credit losses on loans as a percentage of non-performing loans 312.32 ​ 158.05 ​ Allowance for credit losses on loans as a percentage of non-accrual loans 312.32 ​ 158.05 ​ Non-accrual loans as a percentage of total loans 0.14 ​ 0.29 ​ Net recoveries (charge-offs) as a percentage of average outstanding loans — ​ — ​ Non-performing loans as a percentage of total loans 0.14 ​ 0.29 ​ Non-performing loans as a percentage of total assets 0.10 ​ 0.20 ​ Total non-performing assets as a percentage of total assets 0.11 ​ 0.21 ​ ​ ​ ​ ​ ​ ​ Other Data: ​ ​ ​ Number of offices 7 7 ​ Number of full-time employees 66 67 ​ Number of part-time employees 1 1 ​ (1) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
The increase was primarily due to the increase in the average cost of deposits to 2.40% for the year ended December 31, 2024, from 1.61% for the year ended December 31, 2023, reflecting the rising market interest rate environment.
The decrease was primarily due to the decrease in the average cost of deposits to 2.33% for the year ended December 31, 2025, from 2.40% for the year ended December 31, 2024, reflecting the decreasing market interest rate environment.
The average balance of interest-bearing deposits increased by $5.5 million, or 1.4%, to $383.6 million for the year ended December 31, 2024, from $389.1 million for the year ended December 31, 2023. Net Interest Income .
The average balance of interest-bearing deposits increased by $10.8 million, or 2.8%, to $394.5 million for the year ended December 31, 2025, from $383.6 million for the year ended December 31, 2024. Net Interest Income .
Interest Income. Interest and dividend income increased by $2.9 million, or 17.4%, to $19.3 million for the year ended December 31, 2024, compared to $16.4 million for the year ended December 31, 2023.
Interest Income. Interest and dividend income increased by $2.8 million, or 14.4%, to $22.1 million for the year ended December 31, 2025, compared to $19.3 million for the year ended December 31, 2024.
The average balance of investment securities available-for-sale increased $9.8 million, or 14.8%, to $76.1 million for the year ended December 31, 2024, from $66.2 million for the year ended December 31, 2023. The average yield on available-for-sale investment securities increased to 3.38% for the year ended December 31, 2024, from 2.54% for the year ended December 31, 2023.
The average balance of investment securities available-for-sale increased $22.8 million, or 30.0%, to $98.9 million for the year ended December 31, 2025, from $76.1 million for the year ended December 31, 2024. The average yield on available-for-sale investment securities increased to 4.13% for the year ended December 31, 2025, from 3.38% for the year ended December 31, 2024.
At December 31, 2024, we had $34.6 million of outstanding commitments to originate loans, which primarily consists of HELOC’s totaling $13.4 million, construction loans totaling $8.4 million, and Board approved loans totaling $11.5 million. At December 31, 2024, certificates of deposit that are scheduled to mature on or before December 31, 2025 totaled $214.2 million.
At December 31, 2025, we had $35.9 million of outstanding commitments to originate loans, which primarily consists of HELOC’s totaling $17.4 million, construction loans totaling $14.2 million, and Board approved loans totaling $3.1 million. At December 31, 2025, certificates of deposit that are scheduled to mature on or before December 31, 2026 totaled $224.1 million.
Deposits decreased by $1.5 million, or 0.4%, to $391.5 million at December 31, 2024, from $390.0 million at December 31, 2023. Certificates of deposit increased $10.7 million, or 4.7%, to $238.8 million at December 31, 2024, from $228.1 million at December 31, 2023.
Deposits increased by $1.7 million, or 0.4%, to $393.2 million at December 31, 2025, from $391.5 million at December 31, 2024. Certificates of deposit increased $925,000, or 0.4%, to $239.7 million at December 31, 2025, from $238.8 million at December 31, 2024.
The average rate paid on interest-bearing liabilities increased from 1.63% for the year ended December 31, 2023, to 2.40% for the year ended December 31, 2024, primarily due to an increase in the average rate paid on certificates of deposit from 2.60% in 2023 to 3.82% in 2024.
The average rate paid on interest-bearing liabilities decreased from 2.40% for the year ended December 31, 2024, to 2.33% for the year ended December 31, 2025, primarily due to a decrease in the average rate paid on certificates of deposit from 3.82% in 2024 to 3.72% in 2025.
While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our 41 Table of Contents most liquid assets are cash and short-term investments.
While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and short-term investments. The levels of these assets depend on our operating, financing, lending, and investing activities during any given period.
The recovery of credit losses on unfunded commitments is based on an evaluation of the historical usage rate. Total non-performing loans were $1.1 million at December 31, 2024, and December 31, 2023.
The increase in the provision was primarily due to an increase on the unfunded balance of construction loans in process. The recovery of credit losses on unfunded commitments is based on an evaluation of the historical usage rate. Total non-performing loans were $544,000 at December 31, 2025, and $1.1 million December 31, 2024.
The provision (benefit) for income taxes decreased by $507,000, or 347.0%, to ($358,000) for the year ended December 31, 2024, compared to $149,000 for the year ended December 31, 2023. The decrease was due to a $2.4 million, or 251.8%, decrease in pretax income. The effective tax rate was 21% for both years. Management of Market Risk General.
The provision (benefit) for income taxes increased by $455,000, or 127.1%, to $97,000 for the year ended December 31, 2025, compared to ($358,000) for the year ended December 31, 2024. The increase was due to a $5.6 million, or 391.4%, increase in pretax income. The effective tax rate was 21% for both years. Management of Market Risk General.
The increase was primarily due to an increase in salaries and employee benefits of $761,000, or 12.8%, an increase in occupancy and equipment expense of $159,000, or 9.6%, an increase in professional and legal fees of $46,000, or 31.1%, an increase in data processing expense of $111,000, or 10.4%, an increase in audit and examination fees of $158,000, or 108.2%, and an increase in charitable contributions of $1.2 million, or 2,879.1% from establishing the Fifth District Community Foundation Inc., partially offset by a $99,000, or 26.3% decrease in directors fees, and a $127,000, or 49.2% decrease in advertising Provision (benefit) for Income Taxes.
The increase was primarily due to an increase in salaries and employee benefits of $958,000 or 14.3%, an increase in occupancy and equipment expense of $210,000, or 11.5%, an increase in professional and legal fees of $136,000, or 70.1%, an increase in data processing expense of $125,000, or 10.6%, an increase in audit and examination fees of $28,000, or 9.2%, partially offset by a $37,000, or 13.4% decrease in directors fees, a $1.3 million, or 99.7%, decrease in charitable contributions from establishing the Fifth District Community Foundation Inc. in 2024, and a $26,000, or 19.8% decrease in advertising.
Loans Receivable, Net. Loans receivable, net, increased by $2.3 million, or 0.6%, to $367.3 million at December 31, 2024 from $365.0 million at December 31, 2023. Loan originations were $38.9 million and loan repayments totaled $37.7 million.
Loans receivable, net, increased by $9.1 million, or 2.5%, to $376.4 million at December 31, 2025 from $367.3 million at December 31, 2024. Loan originations were $58.5 million and loan repayments totaled $49.4 million.
The net interest margin decreased to 2.13% for the year ended December 31, 2024, from 2.25% for the year ended December 31, 2023. The average yield on interest-earning assets increased from 3.68% for the year ended December 31, 2023, to 4.08% for the year ended December 31, 2024.
The average yield on interest-earning assets increased from 4.08% for the year ended December 31, 2024, to 4.37% for the year ended December 31, 2025.
Total stockholders’ equity increased by $48.0 million, or 61.7%, to $125.8 million at December 31, 2024, from $77.8 million at December 31, 2023.
Total stockholders’ equity increased by $4.0 million, or 3.2%, to $129.8 million at December 31, 2025, from $125.8 million at December 31, 2024.
In addition to organic growth, we may also consider expansion opportunities in our market area or in contiguous markets that we believe would enhance both our franchise value and stockholder returns.
In addition to organic growth, we may also consider expansion opportunities in our market area or in contiguous markets that we believe would enhance both our franchise value and stockholder returns. These opportunities may include 31 Table of Contents establishing loan production offices, establishing new, or de novo, branch offices, acquiring branch offices and/or acquiring other financial institutions.
These discussions take into consideration our business strategy, operating environment, capital, liquidity and performance objectives consistent with the policy and guidelines approved by them. The board of directors establishes policies and guidelines for managing interest rate risk. Our asset/liability management strategy attempts to manage the impact of changes in interest rates on net interest income, our primary source of earnings.
The board of directors establishes policies and guidelines for managing interest rate risk. 39 Table of Contents Our asset/liability management strategy attempts to manage the impact of changes in interest rates on net interest income, our primary source of earnings.
Total interest expense increased $2.9 million or 44.9%, to $9.2 million for the year ended December 31, 2024, compared $6.4 million for the year ended December 31, 2023.
Total interest expense decreased $11,000 or 0.1%, to $9.2 million for the year ended December 31, 2025, compared to $9.2 million for the year ended December 31, 2024.
The table above indicates that at December 31, 2024, we would experience 28.02% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 22.70% increase in EVE in the event of an instantaneous 200 basis point decrease in interest rates. 40 Table of Contents Change in Net Interest Income.
(4) EVE Ratio represents EVE divided by the present value of assets. 40 Table of Contents The table above indicates that at December 31, 2025, we would experience 25.90% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 16.09% increase in EVE in the event of an instantaneous 200 basis point decrease in interest rates.
MMDA accounts decreased $3.7 million, or 14.0%, to $22.7 million at December 31, 2024, from $26.4 million at December 31, 2023. Savings Accounts decreased $8.6 million, or 10.1%, to $76.0 million at December 31, 2024, from $84.6 million at December 31, 2023. Total Stockholders’ Equity.
MMDA accounts decreased $2.0 million, or 8.8%, to $20.7 million at December 31, 2025, from $22.7 million at December 31, 2024. Savings Accounts increased $399,000, or 0.5%, to $76.4 million at December 31, 2025, from $76.0 million at December 31, 2024. Total Stockholders’ Equity.
There were no out-of-period items or adjustments required to be excluded from the table below. 36 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2024 vs. 2023 ​ ​ Increase (Decrease) Due to: ​ Total Increase ​ Volume Rate (Decrease) ​ ​ ​ ​ ​ (In thousands) ​ ​ ​ Interest-earning assets: ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 550 ​ $ 290 ​ $ 840 Investment securities available-for-sale ​ 250 ​ 640 ​ ​ 890 Loans receivable, net ​ 102 ​ 1,027 ​ ​ 1,129 Restricted stock ​ — ​ 4 ​ ​ 4 Total interest-earning assets ​ 902 ​ 1,961 ​ ​ 2,863 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ Savings accounts ​ (4) ​ (10) ​ ​ (14) NOW accounts ​ (1) ​ 1 ​ ​ — Money market accounts ​ (19) ​ (43) ​ ​ (62) Certificates of deposit ​ 158 ​ 2,861 ​ ​ 3,019 Total deposits ​ 134 ​ 2,809 ​ ​ 2,943 Federal Home Loan Bank advances ​ (87) ​ — ​ ​ (87) Total interest-bearing liabilities ​ 515 ​ 5,204 ​ ​ 5,719 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in net interest income ​ $ 386 ​ $ (3,242) ​ $ (2,856) ​ ​ 37 Table of Contents Comparison of Operating Results for the Years Ended December 31, 2024 and December 31, 2023 General.
There were no out-of-period items or adjustments required to be excluded from the table below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2025 vs. 2024 ​ ​ Increase (Decrease) Due to: ​ Total Increase ​ ​ ​ ​ Volume ​ ​ ​ Rate ​ ​ ​ (Decrease) ​ ​ ​ ​ ​ (In thousands) ​ ​ ​ Interest-earning assets: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ (15) ​ $ (302) ​ $ (317) Investment securities available-for-sale ​ 773 ​ 736 ​ ​ 1,509 Loans receivable, net ​ 412 ​ 1,176 ​ ​ 1,588 Restricted stock ​ 1 ​ — ​ ​ 1 Total interest-earning assets ​ 1,171 ​ 1,610 ​ ​ 2,781 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing liabilities: ​ ​ ​ ​ ​ ​ ​ Savings accounts ​ (3) ​ (1) ​ ​ (4) NOW accounts ​ 3 ​ (2) ​ ​ 1 Money market accounts ​ (12) ​ (2) ​ ​ (14) Certificates of deposit ​ 243 ​ (233) ​ ​ 10 Total deposits ​ 231 ​ (238) ​ ​ (7) Federal Home Loan Bank advances ​ (4) ​ — ​ ​ (4) Total interest-bearing liabilities ​ 227 ​ (238) ​ ​ (11) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in net interest income ​ $ 944 ​ $ 1,848 ​ $ 2,792 ​ ​ 37 Table of Contents Comparison of Operating Results for the Years Ended December 31, 2025 and December 31, 2024 General.
The provision for credit losses was a net benefit of $1.2 million in 2024 and a net benefit of $325,000 in 2023. The allowance for credit losses on loans represented 0.46% of total loans at December 31, 2024, and 0.76% of total loans at December 31, 2023.
The provision for credit losses on loans was $-0- for the year ended December 31, 2025, compared to ($1.1 million) for the year ended December 31, 2024. The allowance for credit losses on loans represented 0.45% of total loans at December 31, 2025, and 0.46% of total loans at December 31, 2024.
These opportunities may include establishing loan production offices, establishing new, or de novo, branch offices, acquiring branch offices and/or acquiring other financial institutions. 31 Table of Contents Critical Accounting Policies and Use of Critical Accounting Estimates The discussion and analysis of the financial condition and results of operations are based on our consolidated financial statements, which are prepared in conformity with GAAP.
Critical Accounting Policies and Use of Critical Accounting Estimates The discussion and analysis of the financial condition and results of operations are based on our consolidated financial statements, which are prepared in conformity with GAAP.
Our results of operations also may be affected significantly by general and local economic and competitive conditions, changes in market interest rates, governmental policies and actions of regulatory authorities. 30 Table of Contents Business Strategy Our principal objective is to build long-term value for our stockholders by operating a profitable community-oriented financial institution dedicated to meeting the banking needs of our customers by emphasizing personalized and efficient customer service.
Business Strategy Our principal objective is to build long-term value for our stockholders by operating a profitable community-oriented financial institution dedicated to meeting the banking needs of our customers by emphasizing personalized and efficient customer service.
Net interest income increased $7,000, or 0.06%, to $10.1 million for the year ended December 31, 2024, compared to $10.0 million for the year ended December 31, 2023. The interest rate spread decreased to 1.68% for the year ended December 31, 2024 from 2.05% for the year ended December 31, 2023, while average net interest-earning assets increased $33.5 million period-to-period.
The interest rate spread increased to 2.04% for the year ended December 31, 2025 from 1.68% for the year ended December 31, 2024, while average net interest-earning assets increased $21.7 million period-to-period. The net interest margin increased to 2.55% for the year ended December 31, 2025, from 2.13% for the year ended December 31, 2024.
Noninterest Income. Non-interest income decreased $962,000, or 98.9% to $11,000 for the year ended December 31, 2024, compared to $973,000 for the year ended December 31, 2023.
Noninterest Income. Non-interest income increased $4.4, or 4017.3% to $4.4 million for the year ended December 31, 2025, compared to $11,000 for the year ended December 31, 2024.
The increase primarily resulted from the sale of stock in the initial public offering that totaled $53.2 million, offset by the unearned ESOP shares of $4.2 million, the accumulated other comprehensive loss (as a result of market value adjustment of investment securities available-for-sale due to the rise in market interest rates during the period) declining $62,000 and retained earnings decreasing $1.1 million due to the net loss for the period ended December 31, 2024.
The increase resulted primarily from the accumulated other comprehensive loss (as a result of market value adjustment of investment securities available-for-sale due to the rise in market interest rates during the period) declining $2.5 million and retained earnings increasing $3.2 million due to the net income for the year offset by the $2.0 million decrease in additional paid-in capital as we deploy excess capital to repurchase shares of our common stock.
Net income (loss) for the year ended December 31, 2024, was ($1.1) million, a decrease of $1.9 million, or 235.3%, compared to $797,000 for the year ended December 31, 2023.
Net income (loss) for the year ended December 31, 2025, was $4.1 million, an increase of $5.2 million, or 479.2%, compared to ($1.1) million for the year ended December 31, 2024.
All estimated changes presented in the table are within the policy limits established by the board of directors. ​ ​ ​ ​ ​ ​ ​ At December 31, 2024 Change in Interest Rates ​ Net Interest Income Year 1 ​ ​ ​ (basis points) (1) ​ Forecast ​ Year 1 Change from Level ​ ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ 400 ​ $ 8,922 ​ (27.74) % 300 ​ ​ 9,809 ​ (20.55) ​ 200 ​ ​ 10,672 ​ (13.56) ​ 100 ​ ​ 11,512 (6.76) ​ Level ​ ​ 12,347 — ​ (100) ​ ​ 12,513 1.34 ​ (200) ​ ​ 12,616 2.18 ​ (300) ​ ​ 12,683 ​ 2.72 ​ (400) ​ ​ 12,731 ​ 3.11 ​ (1) Assumes an immediate uniform change in interest rates at all maturities.
All estimated changes presented in the table are within the policy limits established by the board of directors. ​ ​ ​ ​ ​ ​ ​ At December 31, 2025 Change in Interest Rates ​ Net Interest Income Year 1 ​ ​ ​ (basis points) (1) ​ Forecast ​ Year 1 Change from Level ​ ​ ​ (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 400 ​ $ 9,340 ​ (33.34) % 300 ​ ​ 10,508 ​ (25.00) ​ 200 ​ ​ 11,689 ​ (16.57) ​ 100 ​ ​ 12,848 (8.30) ​ Level ​ ​ 14,011 — ​ (100) ​ ​ 14,445 3.10 ​ (200) ​ ​ 14,794 5.59 ​ (300) ​ ​ 15,020 ​ 7.21 ​ (400) ​ ​ 15,241 ​ 8.78 ​ (1) Assumes an immediate uniform change in interest rates at all maturities.
Noninterest Expense. . Noninterest expense increased $2.3 million, or 22.2%, to $12.7 million for the year ended December 31, 2024, compared to $10.4 million for the year ended December 31, 2023.
Net interest income increased $2.8 million, or 27.8%, to $12.8 million for the year ended December 31, 2025, compared to $10.1 million for the year ended December 31, 2024.
Interest income on cash and cash equivalents, comprised primarily of overnight deposits, increased by $840,000, or 145.3%, for the year ended December 31, 2024, due to an increase in the average yield to 5.02% for the year ended December 31, 2024, from 3.99% for the year ended December 31, 2023.
Interest income on cash and cash equivalents, comprised primarily of overnight deposits, decreased by $317,000, or 22.4%, for the year ended December 31, 2025, primarily due to a decrease in the average balance of cash and cash equivalents by $303,000 to $27.9 million for the year ended December 31, 2025, from $28.2 million for the year ended December 31, 2024.
Commercial and industrial loans increased by $2.0 million, primarily from the purchase of the guaranteed portion of government loans, and Bankers Healthcare loans. 1-4 single family mortgages decreased by $4.4 million, home equity loans decreased by $598,000, construction loans increased by $1.5 million, and we reversed $1.1 million from our allowance for credit losses. Deposits.
Commercial loans increased by $10.4 million, primarily from the origination of commercial real estate loans, and commercial and industrial loans, 1-4 single family mortgages decreased by $6.9 million, home equity loans increased by $2.1 million, and construction and land loans increased by $3.0 million. Deposits.
The increase is attributed to a $1.1 million, or 8.0%, increase in interest on loans, a $845,000, or 139.7%, increase in interest on other interest-earning assets and $889,000, or 52.8%, increase in interest on investment securities available-for-sale. During the year ended December 31, 2024, average loans receivable, net, increased by $2.6 million, or 0.7%, from year ended December 31, 2023.
The increase is attributed to a $1.6 million, or 10.4%, increase in interest on loans, a $1.5 million, or 58.6%, increase in interest on investment securities available-for-sale, offset by a $316,000, or 2.2%, decrease in other interest-earning assets.
The increase in the average yield on available-for-sale investment securities was primarily due to the rising market interest rate environment as well as selling $18.7 million in securities available-for-sale, for a loss of $1.1 million, and redeploying the funds into higher yielding securities.
The increase in the average yield on available-for-sale investment securities was primarily due to reinvesting in higher yielding securities.
The net proceeds of the public offering are reflected in stockholders’ equity at December 31, 2024. Investment Securities Available-For-Sale. Investment securities available-for-sale increased $25.1 million, or 36.9%, to $93.0 million at December 31, 2024 from $67.9 million at December 31, 2023. Securities purchased totaled $54.4 million, securities sold totaled $18.7 million, and calls, maturities, and repayments totaled $9.4 million.
Investment securities available-for-sale increased $6.1 million, or 6.5%, to $99.1 million at December 31, 2025 from $93.0 million at December 31, 2024. Securities purchased totaled $18.3 million, and calls, maturities, and repayments totaled $15.9 million. Adding to the increase was a fair market value adjustment of $3.8 million Loans Receivable, Net.
The decrease was primarily due to the $1.1 million realized loss on the sale of investment securities available-for-sale and a $8,000, or 2.0% decrease in ATM and check card fees, offset by a $13,000, or 6.4% increase in deposit service charges and fees, a $41,000, or 13.1% increase in the cash surrender value of the bank owned life insurance, and a $141,000 gain on sale of property.
This increase is primarily due to $6.1 million increase in investment securities available-for-sale, and $9.1 million increase in loans receivable, net offset by a $4.1 million decrease in cash and cash equivalents, and a $3.0 million decrease in bank owned life insurance. Cash and Cash Equivalents.
The average yield on loans increased to 4.16% for the year ended December 31, 2024, from 3.88% for the year ended December 31, 2023, due to the rising market interest rate environment.
The average yield decreased to 3.94% for year ended December 31, 2025, from 5.02% for the year ended December 31, 2024. The decrease in average yield was due to the decrease in market interest rates. Interest Expense .
Total assets were $527.3 million at December 31, 2024, an increase of $46.5 million, or 9.7%, compared to $480.8 million at December 31, 2023. This increase is primarily due to $18.6 million increase in cash and cash equivalents, $25.1 million increase in investment securities available-for-sale, and $2.3 million increase in loans receivable, net. Cash and Cash Equivalents.
Cash and cash equivalents decreased by $4.1 million, or 10.7%, to $33.9 million at December 31, 2025 from $37.9 million at December 31, 2024. This decrease is primarily due to the purchase of investments available for sale and the origination of loans, primarily commercial real estate loans. Investment Securities Available-For-Sale.
The net loss was primarily from an increase in non-interest expense of $2.3 million resulting from a $1.3 million charitable contribution to fund the Fifth District Community Foundation Inc., which was established in connection with the initial public offering, and increase in interest expense of $2.9 million, a decrease in non-interest income of $962,000, partially offset by an increase in interest income of $2.9 million, and a $507,000 decrease in provision for income taxes.
The increase in net income was primarily from an increase in interest income of $2.8 million, an increase in non-interest income of $4.4 million mainly due to a gain on bank owned life insurance proceeds, partially offset by a decrease in recovery of credit losses on loans of $1.2 million, a $370,000 increase in non-interest expense, and a $455,000 decrease in the (benefit) for income taxes.
The increase in the average rate paid on certificates of deposit contributed to migration from lower yielding savings accounts and money market accounts, to higher yielding certificates of deposit.
The decrease in the average rate paid on certificates of deposit was attributed to decreasing market interest rates.
Net cash provided by financing activities amounted to $5.1 million, primarily due to Federal Home Loan Bank advances of $4.0 million and a net increase in deposits of $1.1 million. We believe we maintain a strong liquidity position, and are committed to maintaining it. We monitor our liquidity position on a daily basis.
Our cash flows are comprised of three primary classifications: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. For additional information, see the Consolidated Statements of Cash Flows. We believe we maintain a strong liquidity position, and are committed to maintaining it. We monitor our liquidity position on a daily basis.
All estimated changes presented in the table are within the policy limits established by the board of directors. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EVE as a Percentage of Present Value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ of Assets (3) ​ ​ ​ ​ ​ Estimated Increase (Decrease) in ​ ​ ​ Increase ​ ​ ​ ​ ​ EVE ​ ​ ​ (Decrease) Change in Interest Rates (basis points) (1) Estimated EVE (2) Amount Percent EVE Ratio (4) (basis points) (Dollars in thousands) ​ ​ ​ ​ ​ 400 ​ $ 52,162 ​ $ (51,841) ​ (49.85) % 13.36 % (889) 300 ​ ​ 62,450 ​ ​ (41,553) (39.95) ​ 15.37 ​ (688) 200 ​ ​ 74,858 ​ ​ (29,145) (28.02) ​ 17.63 ​ (462) 100 ​ ​ 88,742 ​ ​ (15,361) (14.67) ​ 19.94 ​ (231) Level ​ ​ 104,003 ​ ​ — — ​ 22.25 ​ — (100) ​ ​ 116,995 ​ ​ 12,993 12.49 ​ 23.83 ​ 158 (200) ​ ​ 127,613 ​ ​ 23,610 22.70 ​ 24.82 ​ 257 (300) ​ ​ 136,523 ​ ​ 32,521 31.27 ​ 25.40 ​ 315 (400) ​ ​ 143,529 ​ ​ 39,527 38.01 ​ 25.57 ​ 332 (1) Assumes an immediate uniform change in interest rates at all maturities.
All estimated changes presented in the table are within the policy limits established by the board of directors. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EVE as a Percentage of Present Value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ of Assets (3) ​ ​ ​ ​ ​ Estimated Increase (Decrease) in ​ ​ ​ Increase ​ ​ ​ ​ ​ EVE ​ ​ ​ (Decrease) Change in Interest Rates (basis points) (1) ​ ​ Estimated EVE (2) ​ ​ Amount ​ ​ Percent ​ ​ EVE Ratio (4) ​ ​ (basis points) (Dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 400 ​ $ 64,101 ​ $ (58,200) ​ (47.59) % 15.83 % (921) 300 ​ ​ 75,621 ​ ​ (46,680) (38.17) % 17.92 % (712) 200 ​ ​ 90,623 ​ ​ (31,678) (25.90) % 20.46 % (458) 100 ​ ​ 106,649 ​ ​ (15,652) (12.80) % 22.91 % (213) Level ​ ​ 122,301 ​ ​ — — % 25.04 % — (100) ​ ​ 133,457 ​ ​ 11,156 9.12 % 26.14 % 110 (200) ​ ​ 141,983 ​ ​ 19,682 16.09 % 26.68 % 164 (300) ​ ​ 146,710 ​ ​ 24,409 19.96 % 26.58 % 154 (400) ​ ​ 148,805 ​ ​ 26,504 21.67 % 26.06 % 102 (1) Assumes an immediate uniform change in interest rates at all maturities.
For the year ended December 31, 2024, cash flows from operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of $18.6 million. Net cash provided by operating activities amounted to $(1.1) million, primarily due to a $1.1 million loss on sale of investment securities offset by $1.2 million recovery of credit losses.
A $1.1 million realized loss on the sale of investment securities available-for-sale was recorded for the year ended December 31, 2024, compared to no such realized losses recorded for the year ended December 31, 2025.
Removed
Cash and cash equivalents increased by $18.6 million, or 96.4%, to $37.9 million at December 31, 2024 from $19.3 million at December 31, 2023. This increase resulted primarily from the cash received for subscriptions to purchase shares of the Company’s common stock in its initial public offering.
Added
Our results of operations also may be affected significantly by general and local economic and competitive conditions, changes in market interest rates, governmental policies and actions of regulatory authorities.
Removed
The increase in interest income was mainly due to the increase in the balance of cash and cash equivalents arising from the cash received for the purchase of stock in the IPO. The increase in average yield was due to the rise in market interest rates. Interest Expense .
Added
Total assets were $534.4 million at December 31, 2025, an increase of $7.1 million, or 1.3%, compared to $527.3 million at December 31, 2024.
Removed
The levels of these assets depend on our operating, financing, lending, and investing activities during any given period. Our cash flows are comprised of three primary classifications: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.
Added
During the year ended December 31, 2025, average loans receivable, net, increased by $9.9 million, or 2.7%, from year ended December 31, 2024. The average yield on loans increased to 4.47% for the year ended December 31, 2025, from 4.16% for the year ended December 31, 2024, due to the making higher yielding loans such as commercial loans.
Removed
Net cash used in investing activities amounted to $27.5 million, primarily due to purchases of securities totaling $54.4 million offset by proceeds from sales or maturities of securities totaling $28.1 million.
Added
A $3.5 million gain on bank owned life insurance proceeds was recorded for the year ended December 31, 2025, while no such gain was recorded for the year ended December 31, 2024.
Removed
Net cash provided by financing activities amounted to $47.1 million, primarily due to the payback of $4.0 million in Federal Home Loan Bank Advances, and the net proceeds from the issuance of common stock totaling $448.7 million.
Added
A $141,000 gain on sale of premises and equipment was recorded for the year ended December 31, 2024, while no such gain was recorded for the year ended December 31, 2025.
Removed
For the year ended December 31, 2023, cash flows from operating, investing, and financing activities resulted in a net decrease in cash and cash equivalents of $730,000. Net cash provided by operating activities amounted to $796,000, primarily due to net income of $797,000.
Added
A gain on real estate owned of $14,000 was recorded for the year ended December 31, 2025, while no such gain was recorded for the year ended December 31, 2024. Noninterest Expense. Noninterest expense increased $370,000, or 2.9%, to $13.1 million for the year ended December 31, 2025, compared to $12.7 million for the year ended December 31, 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeQuantitative and Qualitative Disclosures About Market Risk The information regarding this Item is contained in Item 7 under the heading “Management of Market Risk.” ​ ​ 43 Table of Contents Report of Independent Registered Public Accounting Firm (PCAOB ID 149 ) ​ ​ To the Stockholders and Board of Directors Fifth District Bancorp, Inc. ​ ​ Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Fifth District Bancorp, Inc. and its subsidiary (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements).
Biggest changeQuantitative and Qualitative Disclosures About Market Risk The information regarding this Item is contained in Item 7 under the heading “Management of Market Risk.” ​ 42 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID 274 ) ​ To the Board of Directors Fifth District Bancorp, Inc. ​ Opinion on the Financial Statements We have audited the accompanying consolidated balance sheet of Fifth District Bancorp, Inc.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. ​ We conducted our audits in accordance with the standards of the PCAOB.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. ​ We conducted our audit in accordance with the standards of the PCAOB.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
Our responsibility is to express an opinion on the Company’s financial statements based on our audit.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America. ​ Basis for Opinion These financial statements are the responsibility of the Company’s management.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
We believe that our audits provide a reasonable basis for our opinion. ​ We have served as the Company's auditor since 2023. ​ /s/ Elliott Davis, LLC ​ Franklin, Tennessee March 26, 2025 ​ ​ 44 Table of Contents
We served as the Company's auditor from 2023 to 2024. /s/ Elliott Davis, LLC Franklin, Tennessee March 26, 2025 ​ ​ 44 Table of Contents
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(the “Company”) as of December 31, 2025, and the related consolidated statements of operations, comprehensive income (loss), changes in stockholders’ equity, and cash flows for the year then ended, and the related notes (collectively referred to as the “financial statements”).
Added
In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2025, and the consolidated results of their operations and their cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. ​ Basis for Opinion These financial statements are the responsibility of the Company’s management.
Added
Accordingly, we express no such opinion. ​ Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
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We believe that our audit provides a reasonable basis for our opinion. ​ We have served as the Company’s auditor since 2025. ​ /s/ EISNERAMPER LLP ​ Metairie, Louisiana March 24, 2026 ​ ​ 43 Table of Contents Report of Independent Registered Public Accounting Firm (PCAOB ID 149 ) To the Stockholders and Board of Directors Fifth District Bancorp, Inc.
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Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Fifth District Bancorp, Inc. and its subsidiary (the “Company”) as of December 31, 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements).
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Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
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We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
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We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
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The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
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Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.