What changed in this filing

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Item 1. Business

2026-03-24 compared with 2025-03-26 · 71 added, 53 removed, 638 unchanged (16% of the section changed)

46 unchanged sentences

We conduct our business from our main office and six branch offices located in the Parishes of Jefferson, Orleans, and St.

Our loan portfolio consists primarily of fixed-rate one- to four-family residential mortgage loans that we have originated.

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.

Our loan portfolio consists primarily of fixed-rate one-to four-family residential mortgage 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.

We typically retain in our portfolio the loans that we originate.

We offer a variety of deposit accounts including checking accounts, money market accounts, and certificates of deposit.

5 unchanged sentences

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.

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.

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 we face competition for deposits from money market funds, brokerage firms, mutual funds and insurance companies.

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%;

5 unchanged sentences

Our loan portfolio consists primarily of fixed-rate one-to four-family residential mortgage loans.

We typically retain in our portfolio the loans that we originate.

4 unchanged sentences

(Dollars in thousands)

Real Estate Loans:

One- to four-family residential

Construction and land development

Commercial and industrial loans

One-to-four family mortgages

Home equity lines of credit

Construction and land

Commercial real estate

Commercial and industrial

Consumer loans

6 unchanged sentences

Because the tables present contractual maturities and do not reflect repricing or the effect of prepayments, actual maturities may differ.

Construction and

Commercial and

Lines of Credit

(In thousands)

10 unchanged sentences

(In thousands)

Real estate loans:

One- to four-family residential

Construction and land development

Commercial and industrial loans

One-to-four family mortgages

Home equity lines of credit

Construction and land

Commercial real estate

Commercial and industrial

Consumer loans

3 unchanged sentences

At December 31, 2025, one-to four-family residential mortgage loans secured by non-owner-occupied properties totaled $9.6 million.

Our one- to four-family residential real estate loans are underwritten to Fifth District policy guidelines.

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.

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.

We generally limit the loan-to-value ratios of our residential mortgage loans to 80% (90% with rate adjustment) of the purchase price or appraised value, whichever is lower.

10 unchanged sentences

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.

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.

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.

At December 31, 2025, our largest residential construction loan amounted to $1.8 million, of which $1.5 million had been disbursed.

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.

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.

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.

5 unchanged sentences

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.

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.

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.

33 unchanged sentences

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.

11 unchanged sentences

Land development loans have substantially similar risks with respect to estimating the market value of the collateral property.

Commercial Real Estate Loans .

Our commercial real estate loans are originated primarily based on the credit quality of the borrowers and secondarily on the collateral provided by borrower.

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.

Commercial real estate lending is sensitive to regional and local economic conditions, making loss levels difficult to predict.

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.

22 unchanged sentences

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.

The Board of Directors typically meets monthly.

Generally, we require property and extended coverage casualty insurance in amounts at least equal to the principal amount of the loan or the value of improvements on the property, depending on the type of loan.

28 unchanged sentences

(In thousands)

Real estate loans:

One- to four-family residential

Construction and land development

Commercial and industrial loans

One-to-four family mortgages

Home equity lines of credit

Construction and land

Commercial real estate

Commercial and industrial

Consumer loans

1 unchanged sentence

The following table sets forth information regarding our non-performing assets at the dates indicated.

There were no non-accruing loans made to borrowers experiencing financial difficulty as of December 31, 2023 included in non-accrual loans.

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,

1 unchanged sentence

Non-accrual loans:

Real estate loans:

One- to four-family residential

Construction and land development

Commercial and industrial loans

One-to-four family mortgages

Home equity lines of credit

Construction and land

Commercial real estate

Commercial and industrial

Consumer loans

2 unchanged sentences

Real estate owned:

One- to four-family residential

Construction and land development

One-to-four family mortgages

Construction and land

Total real estate owned

8 unchanged sentences

When an insured institution classifies problem assets as substandard, it may establish general allowances in an amount deemed prudent by management to cover losses that were both probable and reasonable to estimate.

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.

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.

When an insured institution classifies problem assets as “loss,” it is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount.

21 unchanged sentences

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.

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.

The allowance is increased by a provision for credit losses, which is charged to expense and reduced by full and partial charge-offs, net of recoveries.

8 unchanged sentences

Recovery of credit losses on loans

Real estate loans:

One- to four-family residential

Construction and land development

Commercial and industrial loans

One-to-four family mortgages

Home equity lines of credit

Construction and land

Commercial real estate

Commercial and industrial

Consumer loans

Total charge-offs

Real estate loans:

One- to four-family residential

Construction and land development

Commercial and industrial loans

One-to-four family mortgages

Home equity lines of credit

Construction and land

Commercial real estate

Commercial and industrial

Consumer loans

13 unchanged sentences

At December 31,

Allowance for

Credit Losses

(Dollars in thousands)

Real estate loans:

One- to four-family residential

Construction and land development

Commercial and industrial loans

One-to-four family mortgages

Home equity lines of credit

Construction and land

Commercial real estate

Commercial and industrial

Consumer loans

286 unchanged sentences

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.

Shares purchased by an affiliate of Fifth District Bancorp are subject to the resale restrictions of Rule 144 under the Securities Act of 1933.

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.

Sarbanes-Oxley Act of 2002

3 unchanged sentences

Under the Change in Bank Control Act, a federal statute, no person may acquire control of a savings and loan holding company such as Fifth District Bancorp unless the Federal Reserve Board has been given 60 days prior written notice and has not issued a notice disapproving the proposed acquisition, taking into consideration certain factors, including the financial and managerial resources of the acquirer and the competitive effects of the acquisition.

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.

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.

Acquisition of more than 10% of any class of a savings and loan holding company’s voting stock constitutes a rebuttable presumption of control under the regulations under certain circumstances including where, as is the case with Fifth District Bancorp, the issuer has registered securities under Section 12 of the Securities Exchange Act of 1934.

27 unchanged sentences

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.

At December 31, 2025, Fifth District $896,000 in net operating loss carryforwards.

Capital Loss Carryovers.

23 unchanged sentences

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-K

Item 1. Business