What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-03-24 compared with 2025-03-26 · 290 added, 197 removed, 782 unchanged (38% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

(in thousands, except per share amounts)

Cash and Due from Banks

1 unchanged sentence

Total Cash and Cash Equivalents

Investment Securities Available-for-Sale, at Fair Value

Investment Securities Available-for-Sale, at Fair Value (amortized cost $ 104,010 and $ 101,712 respectively)

Restricted Stock

11 unchanged sentences

Advances from Borrowers for Taxes, Insurance, and Repairs

Short-Term Federal Home Loan Bank Advances

Other Liabilities

5 unchanged sentences

20,000,000 Shares Authorized:

5,559,473 and - 0 - Shares Issued and Outstanding at December 31, 2024 and December 31, 2023, Respectively

5,349,039 and 5,559,473 Shares Issued and Outstanding at December 31, 2025 and December 31, 2024

Additional Paid-In Capital

8 unchanged sentences

Years Ended December 31,

(in thousands)

Interest and Dividend Income

9 unchanged sentences

Provision for (Recovery of) Credit Losses on Unfunded Commitments

Total Recovery of Credit Losses

Net Interest Income After Recovery of Credit Losses

Total Provision for (Recovery of) Credit Losses

Net Interest Income After Provision for (Recovery of) Credit Losses

Non-Interest Income

3 unchanged sentences

Loss on Investments Securities

Gain on Sale of Asset

Gain on Sale of Premises and Equipment

Gain on Sale of Real Estate Owned

Gain on Insurance Proceeds

Total Non-Interest Income

11 unchanged sentences

Net Income (Loss)

Earnings (Losses) per Share - Basic and Diluted

Income (Loss) per Share - Basic and Diluted

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

2 unchanged sentences

Years Ended December 31,

(in thousands)

Net Income (Loss)

Other Comprehensive Income

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

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

Reclassification Adjustment for Net Losses Realized

8 unchanged sentences

Stockholders'

(in thousands)

(in thousands, except share amounts)

Balance at December 31, 2023

Other Comprehensive Income

Issuance of Common Stock, Net of Offering Expense

ESOP Shares Released for Allocation

Balance at December 31, 2024

Other Comprehensive Income

Issuance of Common Stock, Net of Offering Expense

Repurchase of Common Stock ( 210,434 Shares)

ESOP Shares Released for Allocation

Stock-Based Compensation

Balance at December 31, 2025

2 unchanged sentences

Consolidated Statements of Cash Flows

Years Ended December 31,

(in thousands)

3 unchanged sentences

Cash Provided by (Used in) Operating Activities

Recovery of Credit Losses

Gain on Sale of Asset

Net Amortization of Deferred Loan Costs

Provision for (Recovery of) Credit Losses

Gain on Insurance Proceeds

Gain on Sale of Premises and Equipment

Gain on Sale of Real Estate Owned

Net Accretion of Deferred Loan Costs

Net Amortization on Investment Securities

1 unchanged sentence

Federal Home Loan Bank Stock Dividend

Deferred Tax Expense

Deferred Tax Expense (Benefit)

Increase in Cash Surrender Value on Bank Owned Life Insurance

ESOP Compensation Expense

Stock-Based Compensation

Changes in Operating Assets and Liabilities

6 unchanged sentences

Purchases of Investment Securities Available-for-Sale

Proceeds from Maturities of Certificates of Deposit at

Other Financial Institutions

Purchase of Federal Home Loan Bank Stock

Increase in Loans Receivable, Net

Bank Owned Life Insurance Proceeds

Proceeds from Sale of Real Estate Owned

Proceeds from Sale of Premises and Equipment

5 unchanged sentences

(in thousands)

Years Ended December 31,

Cash Flows from Financing Activities

1 unchanged sentence

Federal Home Loan Bank Advances

Advances by Borrowers for Taxes,

Insurance, and Repairs

Net proceeds from Issuance of Common Stock

Net Cash Provided by Financing Activities

Increase in Advances by Borrowers for Taxes, Insurance and Repairs

(Repurchase) Net Proceeds from Issuance of Common Stock

Net Cash Provided by (Used in) Financing Activities

Net Increase (Decrease) in Cash and Cash Equivalents

4 unchanged sentences

Cash Paid During the Period for Taxes

Market Value Adjustment for Unrealized Loss on

Investment Securities Available-for-Sale

Non-Cash Investing and Financing Activities

6 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 intercompany transactions and balances have been eliminated.

The financial statements as of and for the period ended December 31, 2023 represent 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”.

Use of Estimates

2 unchanged sentences

Actual results could differ from these estimates.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Material estimates that are particularly susceptible to significant change in the near-term relate to the valuation of the allowance for credit losses, deferred taxes, and fair value of financial instruments.

The determination of the adequacy of the allowance for credit losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.

In connection with the determination of estimated losses on loans and unfunded commitments, management obtains independent appraisals for significant collateral.

In connection with the determination of estimated losses on loans and unfunded commitments, management obtains independent

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

appraisals for significant collateral.

While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions.

20 unchanged sentences

Debt securities that are classified as trading are acquired and held principally for the purpose of selling in the near term.

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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

statements of operations.

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

1 unchanged sentence

Dividend and interest income, including amortization of premium and accretion of discount arising at acquisition, from all categories of investment securities are included in interest income in the consolidated statements of operations.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Restricted Stock

16 unchanged sentences

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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Accrued interest receivable related to loans totaled approximately $ 1,588,000 and $ 1,619,000 at December 31, 2025, and December 31, 2024, respectively, and was reported in accrued interest receivable on the consolidated balance sheets.

1 unchanged sentence

Loan origination and commitment fees and certain direct loan origination costs are deferred and amortized as an adjustment to the related loan’s yield using the effective interest method over the contractual life of the loan.

The accrual of interest is generally discontinued when a loan becomes 90 days past due, is not well collateralized and in the process of collection, or when management believes, after considering economic and business conditions and collection efforts, that the principal or interest will not be collectible in the normal course of business.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

business conditions and collection efforts, that the principal or interest will not be collectible in the normal course of business.

Past due status is based on contractual terms of the loan.

11 unchanged sentences

The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.

Expected credit losses are measured on a pooled basis when similar risk characteristics exist using the open pool method.

The open pool method applies a loss rate to a given pool of loans over the estimated remaining life of the given pool, which is based on historical data.

Loan losses are calculated using the open pool method due to the nature and limited complexity of the loan portfolio.

Expected credit losses are measured on a pooled basis when similar risk characteristics exist using the modified open pool method.

The modified open pool method applies a loss rate to a given pool of loans over the estimated remaining life of the given pool, which is based on historical data.

Loan losses are calculated using the modified open pool method due to the nature and limited complexity of the loan portfolio .

FIFTH DISTRICT BANCORP, INC.

12 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

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

The performance of these loans may be adversely affected by, among other factors, conditions specific to the relevant industry, the real estate market for the property type and geographic region where the property or borrower is located.

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.

This category consists of loans to finance the ground-up construction and/or improvement of commercial properties.

1 unchanged sentence

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.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Commercial and Industrial

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

4 unchanged sentences

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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

This category consists of purchased business loans to independent insurance professionals for the purpose of business acquisition, expansion, refinance and working capital.

These loans are fully collateralized by the business assets of the insurance agency, and typically require a life insurance policy for the agent in the amount of the loan.

All loan payments are received directly via electronic transfer.

Loans have a 10 year commitment on a 15 year amortization with a fixed rate for the first 5 years .

Loans reprice for the remaining 5 years at prime plus a margin.

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

This category consists of commercial loans purchased from a third-party originator that provide short-term, 12-month interim financing to small businesses.

These loans serve as bridge financing for borrowers waiting to secure permanent funding through Small Business Administration (SBA) guaranteed loan programs.

The primary source of repayment for these loans is the planned SBA buyout at the end of the 12-month interim period.

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

Consumer Loans

5 unchanged sentences

Loans that do not share risk characteristics are evaluated on an individual basis.

When the borrower is experiencing financial difficulty and repayment is expected to be provided through the operation or sale of the collateral, the expected credit losses are based on the fair value of collateral at the reporting date, adjusted for estimated selling costs, as appropriate.

When the borrower is experiencing financial difficulty and repayment is expected to be provided through the operation or sale of the

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

collateral, the expected credit losses are based on the fair value of collateral at the reporting date, adjusted for estimated selling costs, as appropriate.

Allowance for Credit Losses - Unfunded Commitments

14 unchanged sentences

Estimated useful lives for building and improvements range from 15 to 40 years, and for furniture and fixtures from 5 to 10 years.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Major expenditures for property acquisitions and those expenditures which substantially increase useful lives are capitalized.

9 unchanged sentences

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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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

10 unchanged sentences

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.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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

3 unchanged sentences

Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), net of applicable income taxes.

Other comprehensive income (loss) includes unrealized gains and losses on available-for-sale securities and pension-related changes other than net periodic pension cost.

Comprehensive income consists of net income (loss) and other comprehensive income, net of applicable income taxes.

Other comprehensive income includes unrealized gains and losses on available-for-sale securities and pension-related changes other than net periodic pension cost.

Accumulated other comprehensive (loss) consists of the cumulative unrealized gains and losses on available-for-sale securities and the cumulative unrealized gain or loss for the funded status of the pension plan liability, net of tax.

Stock-Based Compensation

Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant.

A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Compensation cost is recognized over the requisite service period, generally defined as the vesting period.

For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

The Company’s accounting policy is to recognize compensation cost net of estimated forfeitures.

Earnings per Share

1 unchanged sentence

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 year ended December 31, 2024.

At and during the year ended December 31, 2023, the Company did no t 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 year ended December 31, 2025 and 2024.

Revenue Recognition

10 unchanged sentences

The Company records interchange fees on a per transaction basis at a point in time as services are provided.

Transaction and account management fees are recognized at a point in time as services are provided, except for annual fees

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

which are recognized over the applicable period.

Transaction and account management fees are recognized at a point in time 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.

4 unchanged sentences

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 years ended December 31, 2024 and 2023, the Company did not incur any direct-response advertising costs.

For the years ended December 31, 2025 and 2024, the Company did not incur any amount of direct-response advertising costs.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Segment Reporting

The Company adopted Accounting Standards Update 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 President and 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.

2 unchanged sentences

Recent Accounting Pronouncements – Adopted

2023-07, Improvements to Reportable Segment Disclosures, requires disclosure of incremental segment information on an annual and interim basis to provide investors and other decision makers additional, more detailed information about a reportable segment’s expenses.

The adoption of this ASU did not have a material impact on the Company’s financial statements.

In December 2023, the FASB issued ASU 2023-09, which amended the Income Taxes topic in the Accounting Standards Codification 742 to improve the transparency of income tax disclosures.

The amendments are effective for annual periods beginning after December 15, 2024.

Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

The Company does not expect these amendments to have a material effect on its consolidated financial statements.

Recent Accounting Pronouncements- Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, Which amended the Income Taxes topic in the Accounting Standards Codification 740 to improve the transparency of income tax disclosures.

1 unchanged sentence

Early adoption is permitted for annual financial statement that have not yet been issued or made available for issuance.

The Company does not expect these amendments to have a material effect on its consolidated financial statements.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

The Company adopted the standard on January 1, 2025 on a prospective basis.

The adoption of this ASU resulted in expanded disclosures for income taxes.

The adoption did not have a material effect on the Company’s consolidated financial statements.

Recent Accounting Pronouncements- Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures, which requires the disaggregation of certain expenses in the notes to the consolidated financial statements, to provide enhanced transparency into the expense captions presented on the face of the consolidated statements of operations.

3 unchanged sentences

The Company does not expect these amendments to have a material effect on its consolidated financial statements.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments-Credit Losses (Topic 326) Purchased Loans , which amends the accounting for acquired financial assets under the Current Expected Credit Loss (CECL) methodology.

The update introduces the concept of Purchased Seasoned Loans (PSLs) and effectively eliminates the double counting of credit losses for most acquired loans.

Under the guidance, the gross-up approach is expanded to include all PSLs and an initial allowance for credit losses will be recorded by increasing the amortized cost basis of the loan at the date of acquisition, rather than recognizing an immediate credit loss expense in the consolidated statement of operations.

The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those years.

Early adoption is permitted.

The Company does not expect the amendment to have a material effect on its consolidated financial statements.

Reclassifications:

Certain prior year amounts have been reclassified to conform to the current presentation.

Reclassifications had no effect on prior year net loss or stockholders’equity.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Investment Securities

The amortized cost and estimated fair values of investment securities available-for-sale at December 31, 2024 and December 31, 2023 are as follows (in thousands):

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

December 31, 2025

9 unchanged sentences

Collateralized Mortgage Obligations

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 December 31, 2024, and December 31, 2023 (in thousands):

Corporate Bonds

December 31, 2025

With Losses Under

6 unchanged sentences

Notes to Consolidated Financial Statements

December 31, 2024

With Losses Under

With Losses Over

December 31, 2023

(in thousands)

Government Agencies

11 unchanged sentences

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

The amortized cost and estimated fair value of securities classified as available-for-sale at December 31, 2024, by contractual maturity, are shown in the table below (in thousands).

The amortized cost and estimated fair value of securities classified as available-for-sale at December 31, 2025, by contractual maturity, are shown in the table below .

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

During the year ended December 31, 2024, the company recorded no gross gains and gross loses of $ 1,144,000 related to the sales of securities.

There were no sales of securities during the year ended December 31, 2023.

There was no sales of securities during the year ended December 31, 2025.

During the year ended December 31, 2024, the Company recorded no gross gains and gross losses of $ 1,144,000 to the sales of securities.

FIFTH DISTRICT BANCORP, INC.

1 unchanged sentence

Restricted Stock

The following table shows the amount of restricted stock as of December 31, 2024 and 2023 (in thousands):

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

(in thousands)

2 unchanged sentences

Loans Receivable and Allowance for Credit Losses

Loans receivable at December 31, 2024 and 2023 are summarized as follows (in thousands):

Loans receivable at December 31, 2025 and 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 December 31, 2024 and 2023 (in thousands):

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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

December 31, 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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Construction and Land

Commercial Real Estate

Commercial and Industrial

Total Loans Receivable

December 31, 2024

Loans 90 Days or

More Past Due and

December 31, 2023

(in thousands)

Still Accruing

Real Estate Loans

One-to-Four Family Mortgages

Home Equity Loans / Lines of Credit

Construction Loans

Consumer Loans

Commercial Loans

Home Equity Lines of Credit

Construction and Land

Commercial Real Estate

Commercial and Industrial

Total Loans Receivable

Credit Quality Indicators

4 unchanged sentences

Such loans have one or more weaknesses that jeopardize the liquidation of the debt and expose the Company to loss if the weaknesses are not corrected.

The Company’s credit quality indicators are reviewed and updated annually.

FIFTH DISTRICT BANCORP, INC.

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 December 31, 2024 (in thousands):

The Company’s credit quality indicators are reviewed and updated annually.

The following table presents the Company’s recorded investment in loans by credit quality indicator by year of origination as of December 31, 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 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.

Notes to Consolidated Financial Statements

The following table presents the Company’s recorded investment in loans by credit quality indicator as of December 31, 2023 (in thousands):

The following table presents the Company’s recorded investment in loans by credit quality indicator as of December 31, 2024:

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 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 at December 31, 2024 and 2023 (in thousands):

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

December 31, 2025

3 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 year ended December 31, 2024 and 2023 (in thousands):

For the Year Ended

The following table represents the accrued interest receivables written off by reversing interest income during the year ended December 31, 2025 and 2024:

For the Year Ended December 31,

(in thousands)

December 31, 2024

December 31, 2023

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

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 December 31, 2024 and 2023 (in thousands):

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

December 31, 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

(in thousands)

One-to-Four Family Mortgages

Home Equity Loans/Lines of Credit

Construction Loans

Consumer Loans

Commercial Loans

Home Equity Lines of Credit

Construction and Land

Commercial Real Estate

Commercial and Industrial

Allowance for Credit Losses

The decrease in the allowance for credit losses of approximately $ 1.1 million as of December 31, 2024 as compared to December 31, 2023 was driven by various factors, including the evolving economic outlook, values in the local real estate market, and low net charge-offs.

In addition the Company updated its peer group selection to better align with peers whose loan portfolios reflect the composition of the Company’s loan portfolio and the current local economic conditions.

Adjusting this component of the estimate has resulted in a reduced peer group loss rate and corresponding adjustments to the peer comparisions.

In turn our CECL reserve decreased resulting in $ 1.1 million recovery in our allowance for credit loss.

This adjustment was made in the second quarter of 2024.

The following table summarizes the activity related to the allowance for credit losses for the year ended December 31, 2024 and 2023 (in thousands):

There was no change in the allowance for credit losses as of December 31, 2025 as compared to December 31, 2024.

This was driven by various factors, including the evolving economic outlook, values in the local real estate market remained relatively stable, consistent trends in past due and nonperforming loans, and low net charge-offs.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

The following table summarizes the activity related to the allowance for credit losses for the year ended December 31, 2025 and 2024:

December 31, 2025

(in thousands)

Lines of Credit

and Industrial

Allowance for Credit Losses

4 unchanged sentences

Ending Balance

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

The following table includes disclosures related to the allowance for loan losses for the year ended December 31, 2024 and 2023 (in thousands):

Loans / Lines

The following table includes disclosures related to the allowance for loan losses for the year ended December 31, 2025 and 2024:

December 31, 2024

(in thousands)

Lines of Credit

and Industrial

Allowance for Credit Losses

9 unchanged sentences

An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification.

11 unchanged sentences

There were no modifications to borrower’s experiencing financial difficulty entered into during the year ended December 31, 2025 and 2024 and no loans which had defaults during the year ended December 31, 2025 and 2024.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Unfunded Commitments

4 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 year ended December 31, 2024 and 2023 is as follows (in thousands):

An analysis of the related party activity during the year ended December 31, 2025 and 2024 is as follows:

(in thousands)

Balance, Beginning of the Year

Balance, Beginning of Period

Change in Related Parties, Net

Repayments, Net

Balance, End of Year

Balance, End of Period

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Related Party Other

2 unchanged sentences

Accrued Interest Receivable

Accrued interest receivable at December 31, 2024 and 2023 consisted of the following (in thousands):

Accrued interest receivable at December 31, 2025 and 2024 consisted of the following:

(in thousands)

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Premises and Equipment

Premises and equipment at December 31, 2024 and 2023 are summarized as follows (in thousands):

Premises and equipment at December 31, 2025 and 2024 are summarized as follows:

(in thousands)

3 unchanged sentences

Depreciation expense for the years ended December 31, 2025 and 2024 amounted to approximately $ 671,000 and $ 694,000 , respectively.

The composition of deposits at December 31, 2024 and 2023 is as follows (in thousands):

The composition of deposits at December 31, 2025 and 2024 is as follows:

(in thousands)

3 unchanged sentences

Time deposits that meet or exceed the Federal Deposit Insurance Corporation (FDIC) insurance limit of $250,000 at December 31, 2025 and 2024 were $ 50,230,000 and $ 48,338,000 , respectively.

Time deposits at December 31, 2024 mature as follows (in thousands):

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Time deposits at December 31, 2025 mature as follows:

(in thousands)

1 unchanged sentence

As of December 31, 2025 and 2024, the Company held no brokered deposits.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

As of December 31, 2024, the Company had no Federal Home Loan Bank (FHLB) advances outstanding.

The Company had outstanding borrowings comprised solely of advances from the FHLB totaling $ 4,000,000 , at a rate of 5.598 % , at December 31, 2023, which matured January 8, 2024.

As of December 31, 2025 and 2024, the Company had no FHLB advances outstanding.

Based on collateral pledged, consisting of all shares of FHLB stock owned and a blanket pledge of approximately $ 237,460,000 of its qualifying mortgage loans as of December 31, 2025, the Bank was eligible to borrow up to an additional $ 188,669,000 as of December 31, 2025.

5 unchanged sentences

There was no amount outstanding on this line of credit as of the years ended December 31, 2025 and 2024.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Significant components of the Bank’s deferred tax assets and liabilities at December 31, 2024 and 2023 are as follows (in thousands):

Significant components of the Company’s deferred tax assets and liabilities at December 31, 2025 and 2024 are as follows:

(in thousands)

12 unchanged sentences

Deferred Tax Asset, Net

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Components of income tax expense (benefit) are as follows (in thousands):

Components of income tax expense (benefit) are as follows:

(in thousands)

The calculation of income tax and the effective tax rate are as follows (dollar amounts in thousands):

For the Years Ended December 31,

The calculation of income tax and the effective tax rate are as follows:

(dollars in thousands)

Income Tax Expense at Statutory Rates

Bank Owned Life Insurance

Retained earnings of the Bank at December 31, 2024 and 2023 include approximately $ 4,021,000 for which no deferred federal income tax liability has been recognized.

Non-Taxable or Non-Deductible Items:

Increase in Bank Owned Life Insurance

Bank Owned Life Insurance Proceeds

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

The Company is not subject to state income tax.

Retained earnings at December 31, 2025 and 2024 include approximately $ 4,021,000 for which no deferred federal income tax liability has been recognized.

This amount represents an allocation of income to bad debt deductions prior to January 1, 1988 for tax purposes only.

11 unchanged sentences

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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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

1 unchanged sentence

There are no conditions or events since the notification that management believes have changed the Bank’s prompt corrective action category.

The Bank’s regulatory capital amounts and ratios as of December 31, 2024 and 2023 are also presented in the table below (dollar amounts in thousands):

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

The Bank’s regulatory capital amounts and ratios as of December 31, 2025 and 2024 are also presented in the table below:

Required to Be Well-

16 unchanged sentences

Contributions to the plan are based on a percentage of wages and were approximately $ 479,000 and $ 506,000 in 2025 and 2024, respectively.

The Company also has an unfunded supplemental executive retirement plan on eight executive officers and two retired officers of the Company.

The Company also has an unfunded supplemental executive retirement plan on seven executive officers and two retired officers of the Company.

This plan is accounted for as a defined benefit pension plan, and was amended effective January 1, 2007 to reflect a revised pension benefit formula for the participants.

1 unchanged sentence

The Company has also invested in certain life insurance policies, wherein the Bank is designated as the beneficiary on these policies, with the intent to ultimately use the benefit from such policies to fund the liability to be paid under this plan.

During each of the years ended December 31, 2024 and 2023, the Company paid benefits totaling $ 278,523 .

During each of the years ended December 31, 2025 and 2024, the Company paid benefits totaling $ 364,131 and $ 278,523 , respectively.

The net periodic pension cost associated with the plan totaled $ 280,000 and $ 271,000 for the years ended December 31, 2025 and 2024, respectively, and is included in salaries and employee benefits in the consolidated statements of income.

8 unchanged sentences

Certain ESOP shares are pledged as collateral for debt.

As the debt is repaid, shares are released from collateral and allocated to active employees, based on the proportion of debt service paid during the period.

As the debt is repaid, shares are released from collateral and allocated to active employees, based on the proportion of debt service paid during the year.

In connection with the Company’s initial public offering, the ESOP borrowed $ 4,447,580 payable to the Company for the purpose of purchasing shares of the Company’s common stock.

4 unchanged sentences

Contributions to the ESOP totaled $ 449,000 during the year ended December 31, 2025.

Compensation expense is recognized over the service period based on the average fair value of the shares and totaled $ 246,000 for the year ended December 31, 2024.

The fair value of unallocated ESOP shares totaled $ 4,497,000 at December 31, 2024.

Loss per Share

Loss per common share was computed based on the following for the years ended December 31, 2024 and 2023:

Years Ended December 31,

Compensation expense is recognized over the service period based on the average fair value of the shares and totaled $ 287,000 and $ 246,000 , respectively, for the years ended December 31, 2025 and 2024.

The fair value of unallocated ESOP shares totaled $ 6,008,000 and $ 4,497,000 at December 31, 2025 and 2024, respectively.

Stock-Based Compensation

On September 15, 2025, the stockholders of the Company approved the 2025 Equity Incentive Plan (the Plan) to provide a means to attract, retain, and reward individuals who contribute to that success and to further align their interests with those of the Company's stockholders through the ownership of shares of the Company.

Awards that may be granted under the Plan include stock options, restricted stock awards, restricted stock units, and performance awards.

Total compensation cost that has been charged against income for the plan was $ 68,000 for the year ended December 31, 2025.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Stock Options

The Plan permits the grant of stock options to its employees for up to 555,947 shares of common stock.

Any stock option may be either an incentive stock option or a non-qualified stock option.

Option awards are generally granted with an exercise price equal to the market price of the Company's common stock at the date of grant;

those option awards have vesting periods of 5 years and have 10 -year contractual terms.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below.

Expected volatilities are based on historical volatilities of the Company's common stock.

The Company uses historical data to estimate option exercise and post-vesting termination behavior.

The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable.

The risk-free interest rate for the expected term of the option is based on the U.S.

Treasury yield curve in effect at the time of the grant.

The fair value of options was determined using the following weighted-average assumptions as of grant date.

Risk-Free Interest Rate

Expected Term (In Years)

Expected Price Volatility

Dividend Yield

A summary of the activity in the Plan as it relates to stock options for 2025 follows:

Exercise Price

Remaining Term

Outstanding as of December 31, 2024

Forfeited or Expired

Outstanding as of December 31, 2025

Fully Vested and Expected to Vest

Exercisable, End of Year

As of December 31, 2025, there was $ 562,744 total unrecognized compensation costs related to nonvested stock options granted under the Plan.

The cost is expected to be recognized over a weighted-average period of 5 years .

Restricted Stock Awards

A Management Retention Plan (MRP) provides for the issuance of shares to directors and officers.

Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date.

The fair value of the stock was determined using the stock price at the grant date.

MRP shares fully vest on the 5th anniversary of the grant date.

Total shares issuable under the Plan are 222,378 and 55,595 shares were issued in 2025.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Restricted Stock Awards

A summary of changes in the Company's nonvested shares for the year follows:

Unvested as of December 31, 2024

Unvested as of December 31, 2025

As of December 31, 2025, there was $ 736,000 total unrecognized compensation costs related to nonvested shares granted under the Plan.

The cost is expected to be recognized over a weighted-average period of 5 years .

Earnings (Losses) Per Share

Income (loss) per common share was computed based on the following for the years ended December 31, 2025 and 2024:

(In thousands, except per share data)

Net Loss Available to Common Stockholders

Net Income (Loss) Available to Common Stockholders

Weighted Average Common Shares Outstanding

1 unchanged sentence

Weighted Average Shares

Loss per Common Share - Basic and Diluted

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Income (Loss) per Common Share - Basic and Diluted

Financial Instruments with Off-Balance Sheet Risk

3 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 December 31, 2024 and 2023, the Bank had made various commitments to extend credit totaling approximately $ 34,607,000 and $ 24,000,000 , respectively.

As of December 31, 2025 and 2024, the Company had made various commitments to extend credit totaling approximately $ 35,948,000 and $ 34,607,000 , respectively.

Of these commitments, approximately $ 17,425,000 and $ 13,372,000 are at variable rates as of December 31, 2025 and 2024, respectively.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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.

15 unchanged sentences

The following describes the hierarchy designation, valuation methodology, and key inputs to measure fair value on a recurring basis for designated financial instruments:

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Investment Securities Available-for-Sale

3 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 December 31, 2024 and 2023 are summarized below (in thousands):

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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

December 31, 2025

Fair Value Measurements

5 unchanged sentences

Corporate Bonds

Fair Value Measurements

December 31, 2024

Fair Value Measurements

(in thousands)

Investment Securities Available-for-Sale

2 unchanged sentences

Collateralized Mortgage Obligations

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 December 31, 2025 or 2024.

6 unchanged sentences

The value of residential property collateral is determined based on appraisal by qualified licensed appraisers hired by the Company.

These appraisals may utilize a single valuation

These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach.

Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

approach or a combination of approaches including comparable sales and the income approach.

Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available.

Foreclosed Assets and Real Estate Owned

4 unchanged sentences

Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available.

The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis at December 31, 2024 and 2023 (in thousands):

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

December 31, 2025

Fair Value Measurements

2 unchanged sentences

Real Estate Owned

Fair Value Measurements

December 31, 2024

Fair Value Measurements

(in thousands)

Collateral Dependent Loans

26 unchanged sentences

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.

For time deposits, fair value is estimated using a discounted cash flow method.

Federal Home Loan Bank Advances- Fair value approximates carrying value.

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

The carrying amount and estimated fair value of the Company’s financial instruments as of December 31, 2025 and 2024 were as follows:

December 31, 2025

Fair Value Measurements

5 unchanged sentences

Loans Receivable, Net

Bank Owned Life Insurance

Financial Liabilities

1 unchanged sentence

Notes to Consolidated Financial Statements

Fair Value Measurements

December 31, 2024

Fair Value Measurements

(in thousands)

Financial Assets

3 unchanged sentences

Loans Receivable, Net

Bank Owned Life Insurance

Financial Liabilities

Short-Term Federal Home Loan Bank Advances

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument.

39 unchanged sentences

Total Expense

Loss Before Income Tax Benefit

Income Before Income Tax Benefit

Income Tax Benefit

14 unchanged sentences

Investment In Subsidiary

Net Cash Used in Investing Activities

Net Cash Provided by Investing Activities

Cash Flows from Financing Activities

Net Proceeds from Issuance of Common Stock

(Repurchase) Net Proceeds from Issuance of Common Stock

Net Cash Used in Financing Activities

Net Increase in Cash and Cash Equivalents

Net Decrease in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning of Year

4 unchanged sentences

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

Management has concluded that there are no additional events, other than disclosed above, which require disclosure.

Management has concluded that there are no events which require disclosure.

Changes In and Disagreements With Accountants on Accounting and Financial Disclosure

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 8. Financial Statements and Supplementary Data