What changed in this filing

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Item 1. Financial Statements

2025-11-10 compared with 2025-08-12 · 162 added, 139 removed, 740 unchanged (29% of the section changed)

3 unchanged sentences

(dollars in thousands, except per share amounts)

September 30,

Cash and Due from Banks

19 unchanged sentences

Preferred Stock - $ 0.01 Par Value;

1,000,000 Shares Authorized, None issued and Outstanding at June 30, 2025 and December 31, 2024

1,000,000 Shares Authorized, None Issued and Outstanding at September 30, 2025 and December 31, 2024

Common Stock - $ 0.01 Par Value;

20,000,000 Shares Authorized:

5,559,473 Shares Issued and Outstanding at both June 30, 2025 and December 31, 2024

5,522,750 and 5,559,473 Shares Issued and Outstanding at September 30, 2025 and December 31, 2024

Additional Paid-In Capital

9 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Interest and Dividend Income

8 unchanged sentences

Recovery of Credit Losses on Loans

Recovery of Credit Losses on Unfunded Commitments

Total Recovery of Credit Losses

17 unchanged sentences

Charitable Contributions

Real Estate Owned

Total Non-Interest Expense

2 unchanged sentences

Net Income (Loss)

Earnings per Share - Basic and Diluted

Income (Loss) per Share - Basic and Diluted

The accompanying notes are an integral part of these consolidated financial statements.

3 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Net Income (Loss)

Other Comprehensive Income

Unrealized Net Gain on Investment Securities Available-for-Sale Arising During the Period

Unrealized Net Gains on Investment Securities Available-for-Sale Arising During the Period

Reclassification Adjustment for Net Losses Realized

10 unchanged sentences

Other Comprehensive Income

Balance at June 30, 2024

Issuance of Common Stock, Net of Offering Expense

ESOP Shares Released for Allocation

Balance at September 30, 2024

Balance at December 31, 2024

Other Comprehensive Income

Repurchase of Common Stock ( 36,723 shares)

ESOP Shares Released for Allocation

Balance at June 30, 2025

Balance at September 30, 2025

Comprehensive

Stockholders'

Balance at March 31, 2024

Other Comprehensive Income

Balance at June 30, 2024

Balance at March 31, 2025

Other Comprehensive Income

Issuance of Common Stock, Net of Offering Expense

ESOP Shares Released for Allocation

Balance at September 30, 2024

Balance at June 30, 2025

Other Comprehensive Income

Repurchase of Common Stock ( 36,723 shares)

ESOP Shares Released for Allocation

Balance at September 30, 2025

The balances as of December 31, 2024 and 2023 were audited .

3 unchanged sentences

(in thousands)

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

23 unchanged sentences

Increase in Loans Receivable, Net

Bank Owned Life Insurance Proceeds

Proceeds from Sale of Real Estate Owned

5 unchanged sentences

(in thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash Flows from Financing Activities

3 unchanged sentences

Insurance, and Repairs

Repurchase of Common Stock

Net Cash Provided by Financing Activities

Net Decrease in Cash and Cash Equivalents

Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning of Year

11 unchanged sentences

Fifth District Bancorp, Inc.

(“Fifth District Bancorp” or the “Company”) is a Maryland corporation incorporated on February 15, 2024, to serve as the bank holding company for Fifth District Savings Bank (“Fifth District” or the “Bank”) in connection with the Bank’s conversion from the mutual to stock form of organization (the “Conversion”).

(“Fifth District Bancorp” or the “Company”), a Maryland corporation, was incorporated on February 15, 2024, to serve as the bank holding company for Fifth District Savings Bank (“Fifth District” or the “Bank”) in connection with the Bank’s conversion from the mutual to stock form of organization (the “Conversion”).

The Conversion was completed on July 31, 2024.

16 unchanged sentences

All such adjustments are of a normal, recurring nature, and they are the only adjustments included in the accompanying unaudited consolidated financial statements.

The results of operations for the three and six months ended June 30, 2025 and 2024 are not necessarily indicative of the results which may be expected for the entire fiscal year.

The results of operations for the three and nine months ended September 30, 2025 and 2024 are not necessarily indicative of the results which may be expected for the entire fiscal year.

These statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2024.

Principles of Consolidation

The consolidated financial statements as of and for the period ended June 30, 2025 include the amounts of Fifth District Bancorp and its wholly-owned subsidiary, Fifth District.

The consolidated financial statements as of and for the period ended September 30, 2025 include the accounts of Fifth District Bancorp and its wholly-owned subsidiary, Fifth District.

All intercompany transactions and balances have been eliminated.

1 unchanged sentence

Notes to Consolidated Financial Statements

The financial statements for the period ended June 30, 2024 are those of the Bank only, as the conversion to stock form, including the formation of Fifth District Bancorp, was completed on July 31, 2024.

References herein to the “Company” for periods prior to the completion of the stock conversion should be deemed to refer to the “Bank.”

14 unchanged sentences

Generally, federal funds are sold for one-day periods.

Cash and due from banks include bank deposit accounts aggregating approximately $ 18,329,000 and $ 27,315,000 in excess of the Federal Deposit Insurance Corporation limit of $ 250,000 per insured account on June 30, 2025 and December 31, 2024, respectively.

Cash and due from banks include bank deposit accounts aggregating approximately $ 24,093,000 and $ 27,315,000 in excess of the Federal Deposit Insurance Corporation limit of $ 250,000 per insured account on September 30, 2025 and December 31, 2024, respectively.

The Company has not experienced any losses and does not believe that significant credit risk exists as a result of this practice.

1 unchanged sentence

The requirement is dependent upon the Company’s cash on hand or noninterest-bearing balances.

There was no reserve requirement as of June 30, 2025, and December 31, 2024.

There was no reserve requirement as of September 30, 2025, and December 31, 2024.

Investment Securities

2 unchanged sentences

Purchase premiums and discounts are recognized in interest income using the effective interest method over the terms of the securities, identified as the call date as to premiums and maturity date as to discounts.

The Company held no held-to-maturity securities as of June 30, 2025 or December 31, 2024.

The Company held no held-to-maturity securities as of September 30, 2025 or December 31, 2024.

Debt securities classified as available-for-sale are those debt securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity.

Any decision to sell a security classified as available-

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Debt securities classified as available-for-sale are those debt securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity.

Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movement in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors.

for-sale would be based on various factors, including significant movement in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors.

These securities are carried at estimated fair value by a third-party pricing service with any unrealized gains or losses excluded from net income and reported in accumulated other comprehensive loss, which is reported as a separate component of stockholders’ equity, net of the related deferred tax effect.

1 unchanged sentence

These securities are carried at estimated fair value by a third-party pricing service with any unrealized gains or losses included in net income and reported in non-interest income in the consolidated statements of operations.

The Company held no trading securities as of June 30, 2025 or December 31, 2024.

The Company held no trading securities as of September 30, 2025 or December 31, 2024.

Gains and losses realized on sales of debt securities, determined using the adjusted cost basis of the specific securities sold, are included in non-interest income in the statements of operations.

13 unchanged sentences

Losses are charged against the allowance for credit loss when management believes an available-for-sale security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met.

At June 30, 2025 and December 31, 2024, there was no allowance for credit loss related to the available-for-sale portfolio.

At September 30, 2025 and December 31, 2024, there was no allowance for credit loss related to the available-for-sale portfolio.

Accrued interest receivable on available-for-sale securities totaled approximately $ 546,000 and $ 348,000 at September 30, 2025 and December 31, 2024, respectively, and was excluded from the estimate of credit losses.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Accrued interest receivable on available-for-sale securities totaled approximately $ 382,000 and $ 348,000 at June 30, 2025 and December 31, 2024, respectively, and was excluded from the estimate of credit losses.

Loans Receivable

1 unchanged sentence

Amortized cost is the principal balance outstanding, net of purchase premiums and discounts and deferred fees and costs.

Accrued interest receivable related to loans totaled approximately $ 1,831,000 and $ 1,619,000 at June 30, 2025, and December 31, 2024, respectively, and was reported in accrued interest receivable on the balance sheets.

Accrued interest receivable related to loans totaled approximately $ 1,792,000 and $ 1,619,000 at September 30, 2025, and December 31, 2024, respectively, and was reported in accrued interest receivable on the balance sheets.

Interest income is accrued on the unpaid principal balance as earned using the interest method over the life of the loan.

24 unchanged sentences

The performance of these loans may be adversely affected by, among other factors, local residential real estate market conditions, the interest rate environment, and inflation.

Construction Loans

Construction and Land

This category consists of loans to finance the ground-up construction and/or improvement of residential and vacant lot loans.

4 unchanged sentences

The performance of these loans may be adversely affected by, among other factors, local residential real estate market conditions, the interest rate environment, and inflation.

Commercial Loans

Commercial Real Estate

This category consists of loans primarily secured by office and industrial buildings, warehouses, retail shopping facilities and various special purpose properties, including hotel and restaurants.

3 unchanged sentences

The successful completion of planned improvements and development may be adversely affected by changes in the estimated property value upon completion of construction, projected costs and other conditions leading to project delays.

Commercial and Industrial

This category consists of purchased business loans made to various practitioners and other professionals.

6 unchanged sentences

Notes to Consolidated Financial Statements

Consumer Loans

This category consists of loans to individuals for household, family, and other personal use.

14 unchanged sentences

The Company is the beneficiary of life insurance contracts purchased on the lives of certain officers of the Company which are reported at their cash surrender value.

At June 30, 2025 and December 31, 2024, life insurance contracts totaled approximately $ 7,561,000 and $ 10,685,000 , respectively.

Appreciation in the cash surrender value amounted to approximately $ 87,000 and $ 98,000 for the three months ended June 30, 2025 and 2024, respectively, and $ 176,000 and $ 181,000 for the six months ended June 30, 2025 and 2024, respectively.

At September 30, 2025 and December 31, 2024, life insurance contracts totaled approximately $ 7,631,000 and $ 10,685,000 , respectively.

Appreciation in the cash surrender value amounted to approximately $ 70,000 and $ 91,000 for the three months ended September 30, 2025 and 2024, respectively, and $ 246,000 and $ 271,000 for the nine months ended September 30, 2025 and 2024, respectively.

Appreciation in value of the insurance policies is included in bank owned life insurance within non-interest income in the consolidated statements of operations.

15 unchanged sentences

Operating income of such properties, net of related expenses, and gains and losses on their disposition, are included in the consolidated statements of operations.

The Company had $ 42,000 of real estate owned as of June 30, 2025 and December 31, 2024.

The Company had $ 42,000 of real estate owned as of September 30, 2025 and December 31, 2024.

Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method.

8 unchanged sentences

Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the consolidated statements of operations.

GAAP provides accounting and disclosure guidance about positions taken by an entity in its tax returns that might be uncertain.

Accounting principles generally accepted in the United States of America provide accounting and disclosure guidance about positions taken by an entity in its tax returns that might be uncertain.

The Company believes that it has appropriate support for any tax positions taken, and management has determined that there are no uncertain tax positions that are material to the consolidated financial statements.

1 unchanged sentence

Notes to Consolidated Financial Statements

The Company had no amount of interest and/or penalties recognized in the consolidated statements of operations for the three months and six months ended June 30, 2025 and 2024, nor any amount of interest and/or penalties payable that were recognized in the consolidated balance sheets as of June 30, 2025 or December 31, 2024, in relation to its income tax returns.

The Company had no amount of interest and/or penalties recognized in the consolidated statements of operations for the three months and nine months ended September 30, 2025 and 2024, nor any amount of interest and/or penalties payable that were recognized in the consolidated balance sheets as of September 30, 2025 or December 31, 2024, in relation to its income tax returns.

Any penalties or interest would be recognized in income tax expense.

8 unchanged sentences

Unallocated common shares held by the ESOP are shown as a reduction in stockholders’ equity and are excluded from the weighted-average common shares outstanding for both basic and diluted earnings per share calculations until they are committed to be released.

The Company had no dilutive or potentially dilutive securities during the period ended June 30, 2025.

At and during the period ended June 30, 2024, the Company did not have any common shares outstanding as its initial public offering of stock in connection with the Bank’s conversion from mutual to stock form of organization was completed on July 31, 2024.

The Company had no dilutive or potentially dilutive securities during the period ended September 30, 2025 or December 31, 2024.

Revenue Recognition

10 unchanged sentences

The Company records interchange fees as services are provided.

Transaction and account management fees are recognized as services are provided,

Transaction and account management fees are recognized as services are provided, except for annual fees which are recognized over the applicable period.

The costs of related loyalty rewards programs are netted against interchange revenue as a direct cost of the revenue generating activity.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

except for annual fees which are recognized over the applicable period.

The costs of related loyalty rewards programs are netted against interchange revenue as a direct cost of the revenue generating activity.

Non-Direct-Response Advertising

The Company expenses all advertising costs, except for direct-response advertising, as incurred.

Advertising and promotional expenses totaled approximately $ 25,000 and $ 48,000 for the three months ended June 30, 2025 and 2024, respectively, and $ 44,000 and $ 76,000 for the six months ended June 30, 2025 and 2024, respectively.

Advertising and promotional expenses totaled approximately $ 26,000 and $ 30,000 for the three months ended September 30, 2025 and 2024, respectively, and $ 70,000 and $ 107,000 for the nine months ended September 30, 2025 and 2024, respectively.

If the Company incurs expenses for material direct-response advertising, it will be amortized over the estimated benefit period.

Direct-response advertising consists of advertising whose primary purpose is to elicit sales to customers who could be shown to have responded specifically to the advertising and results in probable future benefits.

For the three and six months ended June 30, 2025 and 2024, the Company did not incur any direct-response advertising costs.

For the three and nine months ended September 30, 2025 and 2024, the Company did not incur any direct-response advertising costs.

Segment Reporting

The Company adopted Accounting Standards Update (ASU) 2023-07 “ Segment Reporting (Topic 280) - Improvement to Reportable Segment Disclosures ” on January 1, 2024.

The Company has determined that all of its banking divisions and subsidiaries meet the aggregation criteria of ASC 280, Segment Reporting , as its current operating model is structured whereby banking divisions and subsidiaries serve a similar base of clients utilizing a company-wide offering of similar products and services managed through similar processes and platforms that are collectively reviewed by the Company’s Chief Executive Officer, who has been identified as the chief operating decision maker (CODM).

The Company has determined that all of its banking divisions and subsidiaries meet the aggregation criteria of ASC 280, Segment Reporting , as its current operating model is structured whereby banking divisions and subsidiaries serve a similar base of clients utilizing a company-wide offering of similar products and services managed through similar processes and platforms that are collectively reviewed by the Company’s Interim Chief Executive Officer, who has been identified as the chief operating decision maker (CODM).

The Company has a single operating segment and thus a single reporting segment.

15 unchanged sentences

Investment Securities

The amortized cost and estimated fair values of investment securities available-for-sale at June 30, 2025 and December 31, 2024 are as follows:

June 30, 2025

The amortized cost and estimated fair values of investment securities available-for-sale at September 30, 2025 and December 31, 2024 are as follows:

September 30, 2025

(in thousands)

9 unchanged sentences

Corporate Bonds

The following tables show the gross unrealized losses and estimated fair value of investment securities available-for-sale for which an allowance for credit losses has not been recorded by category and length of time that securities have been in a continuous unrealized loss position at June 30, 2025, and December 31, 2024:

June 30, 2025

September 30, 2025

With Losses Under

13 unchanged sentences

Collateralized Mortgage Obligations

At June 30, 2025, 105 of the Company’s available-for-sale securities had unrealized losses totaling 10.4 % of the individual securities’ amortized cost basis and 6.4 % of the Company’s total amortized cost basis of the investment securities portfolio.

At June 30, 2025, 56 of these 105 securities had been in a continuous loss position for over 12 months.

At September 30, 2025, 70 of the Company’s available-for-sale securities had unrealized losses totaling 9.7 % of the individual securities’ amortized cost basis and 5.6 % of the Company’s total amortized cost basis of the investment securities portfolio.

At September 30, 2025, 66 of these 70 securities had been in a continuous loss position for over 12 months.

At December 31, 2024, 80 of the Company’s available-for-sale securities had unrealized losses totaling 9.9 % of the individual securities’ amortized cost basis and 8.7 % of the Company’s total amortized cost basis of the investment securities portfolio.

7 unchanged sentences

government and have a long history of zero credit loss.

No allowance for credit losses was recorded for available-for-sale securities at June 30, 2025 or December 31, 2024.

The amortized cost and estimated fair value of securities classified as available-for-sale at June 30, 2025, by contractual maturity, are shown in the table below (in thousands).

No allowance for credit losses was recorded for available-for-sale securities at September 30, 2025 or December 31, 2024.

The amortized cost and estimated fair value of securities classified as available-for-sale at September 30, 2025, by contractual maturity, are shown in the table below (in thousands).

Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options.

7 unchanged sentences

Due after 10 Years

There were no sales of available-for-sale securities during the three and six months ended June 30, 2025.

There were no sales of available-for-sale securities during the three months ended June 30, 2024 and the Company sold $ 18,685,000 securities available-for-sale and recorded a loss of $ 1,144,000 during the six months ended June 30, 2024.

There were no sales of available-for-sale securities during the three and nine months ended September 30, 2025.

There were no sales of available-for-sale securities during the three months ended September 30, 2024 and the Company sold $ 18,685,000 securities available-for-sale and recorded a loss of $ 1,144,000 during the nine months ended September 30, 2024.

FIFTH DISTRICT BANCORP, INC.

1 unchanged sentence

Restricted Stock

The following table shows the amount of restricted stock as of June 30, 2025, and December 31, 2024:

The following table shows the amount of restricted stock as of September 30, 2025, and December 31, 2024:

(in thousands)

2 unchanged sentences

Loans Receivable and Allowance for Credit Losses

Loans receivable at June 30, 2025, and December 31, 2024 are summarized as follows:

Loans receivable at September 30, 2025, and December 31, 2024 are summarized as follows:

(in thousands)

Real Estate Loans:

One-to-Four Family Mortgages

Home Equity Lines of Credit

Construction Loans

Consumer Loans

Commercial Loans

Construction and Land

Commercial Real Estate

Commercial and Industrial

Total Loans Receivable

2 unchanged sentences

Total Loans Receivable, Net

The following tables present an analysis of past-due loans as of June 30, 2025, and December 31, 2024:

June 30, 2025

The following tables present an analysis of past-due loans as of September 30, 2025, and December 31, 2024:

September 30, 2025

Loans 90 Days or

2 unchanged sentences

Still Accruing

Real Estate Loans:

One-to-Four Family Mortgages

Home Equity Lines of Credit

Construction Loans

Consumer Loans

Commercial Loans

Construction and Land

Commercial Real Estate

Commercial and Industrial

Total Loans Receivable

FIFTH DISTRICT BANCORP, INC.

5 unchanged sentences

Still Accruing

Real Estate Loans:

One-to-Four Family Mortgages

Home Equity Lines of Credit

Construction Loans

Consumer Loans

Commercial Loans

Construction and Land

Commercial Real Estate

Commercial and Industrial

Total Loans Receivable

Credit Quality Indicators

7 unchanged sentences

Notes to Consolidated Financial Statements

The following table presents the Company’s recorded investment in loans by credit quality indicator by year of origination as of June 30, 2025:

The following table presents the Company’s recorded investment in loans by credit quality indicator by year of origination as of September 30, 2025:

Term Loans by Year of Origination

8 unchanged sentences

Current Period Gross Write-Offs

Construction Loans

Construction and Land

Special Mention

Total Construction Loans

Total Construction and Land

Current Period Gross Write-Offs

Consumer Loans

Commercial Real Estate

Special Mention

Total Consumer Loans

Total Commercial Real Estated

Current Period Gross Write-Offs

Commercial Loans

Commercial and Industrial

Special Mention

Total Commercial Loans

Total Commercial and Industrial

Current Period Gross Write-Offs

Special Mention

Total Consumer

Current Period Gross Write-Offs

FIFTH DISTRICT BANCORP, INC.

11 unchanged sentences

Current Period Gross Write-Offs

Construction Loans

Construction and Land

Special Mention

Total Construction Loans

Total Construction and Land

Current Period Gross Write-Offs

Consumer Loans

Commercial Real Estate

Special Mention

Total Consumer Loans

Total Commercial Real Estate

Current Period Gross Write-Offs

Commercial Loans

Commercial and Industrial

Special Mention

Total Commercial Loans

Total Commercial and Industrial

Current Period Gross Write-Offs

Special Mention

Total Consumer

Current Period Gross Write-Offs

FIFTH DISTRICT BANCORP, INC.

1 unchanged sentence

Nonaccrual Loans

The following table is a summary of the Company’s nonaccrual loans by major categories for the period indicated:

June 30, 2025

The following table is a summary of the Company’s nonaccrual loans by major categories as of September 30, 2025 and December 31, 2024:

September 30, 2025

December 31, 2024

2 unchanged sentences

Home Equity Lines of Credit

Construction Loans

Consumer Loans

Commercial Loans

Construction and Land

Commercial Real Estate

Commercial and Industrial

Interest accrued but not received for loans placed on nonaccrual status is reversed against interest income.

1 unchanged sentence

The Company does not recognize interest income while loans are on nonaccrual status.

The following table represents the accrued interest receivables written off by reversing interest income during the three and six months ended June 30, 2025 and 2024:

For the Three Months Ended June 30,

For the Six Months Ended June 30,

The following table represents the accrued interest receivables written off by reversing interest income during the three and nine months ended September 30, 2025 and 2024:

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

(in thousands)

1 unchanged sentence

Home Equity Lines of Credit

Construction Loans

Consumer Loans

Commercial Loans

Construction and Land

Commercial Real Estate

Commercial and Industrial

Collateral-Dependent Loans

7 unchanged sentences

Notes to Consolidated Financial Statements

The following table presents an analysis of collateral-dependent loans of the Company as of June 30, 2025 and December 31, 2024:

June 30, 2025

The following table presents an analysis of collateral-dependent loans of the Company as of September 30, 2025 and December 31, 2024:

September 30, 2025

(in thousands)

1 unchanged sentence

Home Equity Lines of Credit

Construction Loans

Consumer Loans

Commercial Loans

Construction and Land

Commercial Real Estate

Commercial and Industrial

December 31, 2024

8 unchanged sentences

Allowance for Credit Losses

The following table summarizes the activity related to the allowance for credit losses for the three and six months ended June 30, 2025 and 2024 (in thousands):

Three Months Ended

Loans / Lines

June 30, 2025

The following table summarizes the activity related to the allowance for credit losses for the three and nine months ended September 30, 2025 and 2024 (in thousands):

Three Months Ended September 30, 2025

and Industrial

Allowance for Credit Losses

4 unchanged sentences

Ending Balance

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Allowance for Credit Losses

4 unchanged sentences

Ending Balance

Six Months Ended

Loans / Lines

June 30, 2025

Nine Months Ended September 30, 2025

and Industrial

Allowance for Credit Losses

4 unchanged sentences

Ending Balance

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Allowance for Credit Losses

21 unchanged sentences

Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

The Company had no loans with modifications to borrowers experiencing financial difficulty as of June 30, 2025, and December 31, 2024.

There were no modifications to borrower’s experiencing financial difficulty entered into during the three and six months ended June 30, 2025 and 2024 and no loans which had defaults during the three and six months ended June 30, 2025 and 2024 which have been modified due to the borrower experiencing financial difficulty.

The Company had no loans with modifications to borrowers experiencing financial difficulty as of September 30, 2025, and December 31, 2024.

There were no modifications to borrower’s experiencing financial difficulty entered into during the three and nine months ended September 30, 2025 and 2024 and no loans which had defaults during the three and nine months ended September 30, 2025 and 2024 which have been modified due to the borrower experiencing financial difficulty.

Unfunded Commitments

For the three and six month periods ended June 30, 2025 and 2024, provision for credit losses on unfunded commitments totaled $- 0 -.

At June 30, 2025 and December 31, 2024, the liability for credit losses on off-balance-sheet credit exposures included in other liabilities was $ 15,000 .

For the three and nine month periods ended September 30, 2025 and 2024, provision for credit losses on unfunded commitments totaled $- 0 -.

At September 30, 2025 and December 31, 2024, the liability for credit losses on off-balance-sheet credit exposures included in other liabilities was $ 15,000 .

Related Party Loans

5 unchanged sentences

They do not involve more than normal risk of collectability or present other unfavorable features.

An analysis of the related party activity during the six months ended June 30, 2025 and 2024 is as follows:

An analysis of the related party activity during the nine months ended September 30, 2025 and 2024 is as follows:

September 30,

(in thousands)

14 unchanged sentences

banks (Basel Ill rules) became fully effective for the Company on January 1, 2019.

Management believes, as of June 30, 2025 and December 31, 2024, that the Company meets all capital adequacy requirements to which it is subject.

As of June 30, 2025 and December 31, 2024, the most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.

Management believes, as of September 30, 2025 and December 31, 2024, that the Company meets all capital adequacy requirements to which it is subject.

As of September 30, 2025 and December 31, 2024, the most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.

To be categorized as well capitalized, the Bank must maintain minimum total ratios as disclosed in the table below.

2 unchanged sentences

Notes to Consolidated Financial Statements

The Bank’s actual capital amounts and ratios as of June 30, 2025 and December 31, 2024 are also presented in the table below (dollar amounts in thousands):

The Bank’s actual capital amounts and ratios as of September 30, 2025 and December 31, 2024 are also presented in the table below (dollar amounts in thousands):

Required to Be Well-

3 unchanged sentences

Action Provisions

June 30, 2025

September 30, 2025

Tier 1 Capital to Average Assets

12 unchanged sentences

The contract amounts of those instruments reflect the extent of the involvement the Company has in particular classes of financial instruments.

As of June 30, 2025 and December 31, 2024, the Company had made various commitments to extend credit totaling approximately $ 27,853,000 and $ 34,607,000 , respectively.

Of these commitments, approximately $ 14,872,000 and $ 13,372,000 are at variable rates as of June 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025 and December 31, 2024, the Company had made various commitments to extend credit totaling approximately $ 26,785,000 and $ 34,607,000 , respectively.

Of these commitments, approximately $ 16,249,000 and $ 13,372,000 are at variable rates as of September 30, 2025 and December 31, 2024, respectively.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.

22 unchanged sentences

The carrying amount of accrued interest on securities approximates its fair value.

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 are summarized below:

June 30, 2025

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024 are summarized below:

September 30, 2025

Fair Value Measurements

15 unchanged sentences

Corporate Bonds

The Company did no t record any liabilities at fair market value for which measurement of the fair value was made on a recurring basis at June 30, 2025 and December 31, 2024.

There were no transfers into, out of, purchases, or sales of Level 3 securities during the three and six months ended June 30, 2025 and 2024.

The Company did no t record any liabilities at fair market value for which measurement of the fair value was made on a recurring basis at September 30, 2025 and December 31, 2024.

There were no transfers into, out of, purchases, or sales of Level 3 securities during the three and nine months ended September 30, 2025 and 2024.

Assets and Liabilities Measured on a Non-Recurring Basis

14 unchanged sentences

Notes to Consolidated Financial Statements

The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis at June 30, 2025 and December 31, 2024:

June 30, 2025

The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis at September 30, 2025 and December 31, 2024:

September 30, 2025

Fair Value Measurements

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Weighted Average

June 30, 2025

September 30, 2025

Collateral Dependent Loans

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The fair value of loans is measured using an exit price notion.

Bank Owned Life Insurance - Fair value approximates carrying value.

Deposits - For NOW, savings and certain money market fund accounts, fair value is equal to the amount payable on demand or carrying value.

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The carrying amount and estimated fair value of the Company’s financial instruments are as follows:

June 30, 2025

September 30, 2025

Fair Value Measurements

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In some instances, there are no quoted market prices for the Company’s various financial instruments, in which case fair values may be based on estimates using the present value or other valuation techniques, or based on judgements regarding future expected loss experience, current economic conditions, risk characteristics of financial instruments, or other factors.

Those techniques are significantly affected by assumptions used, including the discount rate and estimate of future cash flows.

Subsequent changes in assumptions could significantly affect the estimates.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

techniques are significantly affected by assumptions used, including the discount rate and estimate of future cash flows.

Subsequent changes in assumptions could significantly affect the estimates.

In connection with the Conversion, the Company established an ESOP for the exclusive benefit of eligible employees.

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The loan is expected to be repaid over a period of up to 20 years .

Contributions to the ESOP totaled $ 112,000 and $ 224,000 during the three and six months ended June 30, 2025, respectively.

Compensation expense is recognized over the service period based on the average fair value of the shares and totaled $ 68,000 and $ 138,000 for the three and six months ended June, 2025, respectively.

There were no contributions to the ESOP or compensation expense recognized during the three and six months ended June 30, 2024, as the Bank’s conversion from mutual to stock form of organization was completed on July 31, 2024.

The fair value of the unallocated ESOP shares totaled $ 5,040,000 at June 30, 2025 and $ 5,349,000 at December 31, 2024.

Contributions to the ESOP totaled $ 112,000 and $ 336,000 during the three and nine months ended September 30, 2025, respectively.

Compensation expense is recognized over the service period based on the average fair value of the shares and totaled $ 75,000 and $ 213,000 for the three and nine months ended September 30, 2025, respectively.

Contributions to the ESOP totaled $ 224,000 during the three and nine months ended September 30, 2024.

Compensation expense is recognized over the service period based on the average fair value of the shares and totaled $ 115,000 for the three and nine months ended September 30, 2024

The fair value of the unallocated ESOP shares totaled $ 5,621,000 at September 30, 2025 and $ 5,349,000 at December 31, 2024.

Earnings per Share

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Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(In thousands, except per share data)

Net Income Available to Common Stockholders

Net Income (Loss) Available to Common Stockholders

Weighted Average Common Shares Outstanding

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Weighted Average Shares

Income per Common Share - Basic and Diluted

At and during the period ended June 30, 2024, the company did not have any common shares outstanding as its initial public offering of stock in connection with the Bank’s conversion from mutual to stock form of organization was completed on July 31, 2024.

Income (Loss) per Common Share - Basic and Diluted

Subsequent Events

In accordance with the subsequent events topic of the FASB ASC 855, the Company evaluates events and transactions that occur after the consolidated balance sheets date for potential recognition in the consolidated

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

financial statements.

The effects of all subsequent events that provide additional evidence of conditions that existed at the consolidated balance sheets date are recognized in the consolidated financial statements as of June 30, 2025 and December 31, 2024.

In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred through the date the consolidated financial statements were issued.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements