What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-10 compared with 2026-05-12 · 154 added, 122 removed, 740 unchanged (27% of the section changed)

24 unchanged sentences

Preferred Stock - $ 0.01 Par Value;

1,000,000 Shares Authorized, None Issued and Outstanding at March 31, 2026 and December 31, 2025

1,000,000 Shares Authorized, None Issued and Outstanding at June 30, 2026 and December 31, 2025

Common Stock - $ 0.01 Par Value;

20,000,000 Shares Authorized:

5,289,348 and 5,349,039 Shares Issued and Outstanding at March 31, 2026 and December 31, 2025

5,235,658 and 5,349,039 Shares Issued and Outstanding at June 30, 2026 and December 31, 2025

Additional Paid-In Capital

8 unchanged sentences

Three Months Ended

Six Months Ended

(in thousands)

7 unchanged sentences

Net Interest Income

Provision for Credit Losses on Loans

Provision for Credit Losses on Unfunded Commitments

Total Provision for Credit Losses

5 unchanged sentences

Gain on Sale of Real Estate Owned

Gain on Insurance Proceeds

Total Non-Interest Income

9 unchanged sentences

Income Before Income Taxes

Income Tax Expense

Income Tax Expense (Benefit)

Income per Share - Basic and Diluted

3 unchanged sentences

Three Months Ended

Six Months Ended

(in thousands)

1 unchanged sentence

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

Reclassification Adjustment for Net Losses Realized

Net Gain on Defined Benefit Pension Plan

Reclassification Adjustment for Net Gains Realized

Net Gain (Loss) on Defined Benefit Pension Plan

Total Other Comprehensive Income (Loss)

6 unchanged sentences

Stockholders'

(in thousands, except share amounts)

Balance at December 31, 2024

1 unchanged sentence

ESOP Shares Released for Allocation

Balance at March 31, 2025

Balance at June 30, 2025

Balance at December 31, 2025

3 unchanged sentences

Stock-Based Compensation

Balance at June 30, 2026

Comprehensive

Stockholders'

Balance at March 31, 2025

Other Comprehensive Income

ESOP Shares Released for Allocation

Balance at June 30, 2025

Balance at March 31, 2026

Other Comprehensive Loss

Repurchase of Common Stock ( 323,815 shares)

ESOP Shares Released for Allocation

Stock-Based Compensation

Balance at June 30, 2026

The balances as of December 31, 2025 and 2024 were audited .

2 unchanged sentences

Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended

Six Months Ended

(in thousands)

1 unchanged sentence

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities

Gain on Insurance Proceeds

Gain on Sale of Real Estate Owned

Net Accretion of Deferred Loan Costs

Net Amortization (Accretion) of Deferred Loan Costs

Net Amortization on Investment Securities

13 unchanged sentences

Increase in Loans Receivable, Net

Proceeds from Sale of Premises and Equipment

Proceeds from Sale of Real Estate Owned

Purchases of Premises and Equipment

4 unchanged sentences

(in thousands)

Three Months Ended

Six Months Ended

Cash Flows from Financing Activities

Increase in Deposits, Net

Increase (Decrease) in Deposits, Net

Decrease in Advances by Borrowers for Taxes, Insurance and Repairs

Repurchase of Common Stock

Net Cash Provided by Financing Activities

Net Cash Provided by (Used in) Financing Activities

Net Decrease in Cash and Cash Equivalents

24 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 months ended March 31, 2026 and 2025 are not necessarily indicative of the results which may be expected for the entire fiscal year.

The results of operations for the three and six months ended June 30, 2026 and 2025 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, 2025.

Principles of Consolidation

The consolidated financial statements as of and for the period ended March 31, 2026 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 June 30, 2026 include the amounts of Fifth District Bancorp and its wholly-owned subsidiary, Fifth District.

All intercompany transactions and balances have been eliminated.

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

3 unchanged sentences

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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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.

determination of estimated losses on loans and unfunded commitments, management obtains independent 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.

2 unchanged sentences

Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near-term.

However, the amount of the change that is reasonably possible cannot be estimated.

However, the amount of change that is reasonably possible cannot be estimated.

Cash and Cash Equivalents

1 unchanged sentence

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

Cash and due from banks include bank deposit accounts aggregating approximately $ 14,056,000 and $ 25,808,000 in excess of the Federal Deposit Insurance Corporation limit of $ 250,000 per insured account on March 31, 2026 and December 31, 2025, respectively.

Cash and due from banks include bank deposit accounts aggregating approximately $ 8,962,000 and $ 25,808,000 in excess of the Federal Deposit Insurance Corporation limit of $ 250,000 per insured account on June 30, 2026 and December 31, 2025, 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 March 31, 2026, and December 31, 2025.

There was no reserve requirement as of June 30, 2026, and December 31, 2025.

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 March 31, 2026 or December 31, 2025.

The Company held no held-to-maturity securities as of June 30, 2026 or December 31, 2025.

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.

3 unchanged sentences

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 March 31, 2026 or December 31, 2025.

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.

Dividend and interest income,

The Company held no trading securities as of June 30, 2026 or December 31, 2025.

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 consolidated statements of operations.

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

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.

Restricted Stock

11 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 March 31, 2026 and December 31, 2025, there was no allowance for credit loss related to the available-for-sale portfolio.

Accrued interest receivable on available-for-sale securities totaled approximately $ 523,000 and $ 411,000 at March 31, 2026 and December 31, 2025, respectively, and was excluded from the estimate of credit losses.

At June 30, 2026 and December 31, 2025, there was no allowance for credit loss related to the available-for-sale portfolio.

Accrued interest receivable on available-for-sale securities totaled approximately $ 385,000 and $ 411,000 at June 30, 2026 and December 31, 2025, 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 $ 1,804,000 and $ 1,588,000 at March 31, 2026, and December 31, 2025, respectively, and was reported in accrued interest receivable on the balance sheets.

Accrued interest receivable related to loans totaled $ 1,889,000 and $ 1,588,000 at June 30, 2026, and December 31, 2025, respectively, and was reported in accrued interest receivable on the consolidated balance sheets.

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

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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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

72 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 March 31, 2026 and December 31, 2025, life insurance contracts totaled approximately $ 7,757,000 and $ 7,689,000 , respectively.

Appreciation in the cash surrender value amounted to approximately $ 68,000 and $ 88,000 for the three months ended March 31, 2026 and 2025, respectively.

At June 30, 2026 and December 31, 2025, life insurance contracts totaled approximately $ 7,832,000 and $ 7,689,000 , respectively.

Appreciation in the cash surrender value amounted to approximately $ 74,000 and $ 87,000 for the three months ended June 30, 2026 and 2025, respectively, and $ 143,000 and $ 176,000 for the six months ended June 30, 2026 and 2025.

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

11 unchanged sentences

The ability of the Company to recover the carrying value of real estate is based upon future sales of the real estate owned.

The ability to effect such recovery is subject to market conditions and other factors, many of which are beyond the Company’s control.

Operating income of such properties, net of related expenses, and gains and losses

The ability to affect such recovery is subject to market conditions and other factors, many of which are

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

on their disposition, are included in the consolidated statements of operations.

The Company had $ 42,000 of real estate owned as of March 31, 2026 and December 31, 2025.

beyond the Company’s control.

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 $ 45,000 and $ 42,000 of real estate owned as of June 30, 2026 and December 31, 2025, respectively.

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.

The Company had no amount of interest and/or penalties recognized in the consolidated statements of operations for the three months ended March 31, 2026 and 2025, nor any amount of interest and/or penalties payable that were recognized in the consolidated balance sheets as of March 31, 2026 or December 31, 2025, 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 and six months ended June 30, 2026 and 2025, nor any amount of interest and/or penalties payable that were recognized in the consolidated balance sheets as of June 30, 2026 or December 31, 2025, in relation to its income tax returns.

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

16 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 March 31, 2026 or December 31, 2025.

The Company had no dilutive or potentially dilutive securities during the period ended June 30, 2026 or December 31, 2025.

Revenue Recognition

7 unchanged sentences

Fees are generally recognized at a point in time as services are delivered to or consumed by the customer or as penalties are assessed.

ATM and check card fees includes interchange fees from credit and debit cards processed through card association networks, annual fees, and other transaction and account management fees.

ATM and check card fees include interchange fees from credit and debit cards processed through card association networks, annual fees, and other transaction and account management fees.

Interchange rates are generally set by the credit card associations and based on purchase volumes and other factors.

4 unchanged sentences

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

Advertising and promotional expenses totaled approximately $ 38,000 and $ 19,000 for the three months ended March 31, 2026 and 2025, respectively.

If the Company incurs expenses for material direct-response advertising, it will be

Advertising and promotional expenses totaled $ 47,000 and $ 25,000 for the three months ended June 30, 2026 and 2025,

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

amortized over the estimated benefit period.

respectively, and $ 85,000 and $ 44,000 for the six months ended June 30, 2026 and 2025, 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 months ended March 31, 2026 and 2025, the Company did not incur any direct-response advertising costs.

For the three and six months ended June 30, 2026 and 2025, the Company did not incur any direct response advertising costs.

Segment Reporting

13 unchanged sentences

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.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Recent Accounting Pronouncements- Not Yet Adopted

2 unchanged sentences

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

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies are not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Investment Securities

The amortized cost and estimated fair values of investment securities available-for-sale at March 31, 2026 and December 31, 2025 are as follows:

March 31, 2026

The amortized cost and estimated fair values of investment securities available-for-sale at June 30, 2026 and December 31, 2025 are as follows:

June 30, 2026

(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 March 31, 2026, and December 31, 2025:

March 31, 2026

June 30, 2026

With Losses Under

14 unchanged sentences

Collateralized Mortgage Obligations

At March 31, 2026, 115 of the Company’s available-for-sale securities had unrealized losses totaling 8.7 % of the individual securities’ amortized cost basis and 5.5 % of the Company’s total amortized cost basis of the investment securities portfolio.

At March 31, 2026, 58 of these 115 securities had been in a continuous loss position for over 12 months.

At June 30, 2026, 75 of the Company’s available-for-sale securities had unrealized losses totaling 9.4 % of the individual securities’ amortized cost and 5.8 % of the Company’s total amortized cost basis of the investment securities portfolio.

At June 30, 2026, 55 of these 75 securities had been in a continuous loss position for over 12 months.

At December 31, 2025, 67 of the Company’s available-for-sale securities had unrealized losses totaling 9.5 % of the individual securities’ amortized cost basis and 5.3 % of the Company’s total amortized cost basis of the investment securities portfolio.

2 unchanged sentences

Management has determined that the declines in the fair value of these securities are not attributable to credit losses.

The Company’s securities in an unrealized loss position are issued by U.S.

The majority of the Company’s securities in an unrealized loss position are issued by U.S.

government agencies or U.S.

2 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 March 31, 2026 or December 31, 2025.

The amortized cost and estimated fair value of securities classified as available-for-sale at March 31, 2026, by contractual maturity, are shown in the table below.

No allowance for credit losses was recorded for available-for-sale securities at June 30, 2026 or December 31, 2025.

The amortized cost and estimated fair value of securities classified as available-for-sale at June 30, 2026, 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

There were no sales of available-for-sale securities during the three months ended March 31, 2026 and 2025.

There were no sales of available-for-sale securities during the three and six months ended June 30, 2026 and 2025.

FIFTH DISTRICT BANCORP, INC.

1 unchanged sentence

Restricted Stock

The following table shows the amount of restricted stock as of March 31, 2026, and December 31, 2025:

The following table shows the amount of restricted stock as of June 30, 2026, and December 31, 2025:

(in thousands)

2 unchanged sentences

Loans Receivable and Allowance for Credit Losses

Loans receivable at March 31, 2026, and December 31, 2025 are summarized as follows:

Loans receivable June 30, 2026, and December 31, 2025 are summarized as follows:

(in thousands)

9 unchanged sentences

Total Loans Receivable, Net

The following tables present an analysis of past-due loans as of March 31, 2026, and December 31, 2025:

March 31, 2026

The following tables present an analysis of past-due loans as of June 30, 2026, and December 31, 2025:

June 30, 2026

Loans 90 Days or

32 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 March 31, 2026:

The following table presents the Company’s recorded investment in loans by credit quality indicator by year of origination as of June 30, 2026:

Term Loans by Year of Origination

54 unchanged sentences

Nonaccrual Loans

The following table is a summary of the Company’s nonaccrual loans by major categories as of March 31, 2026 and December 31, 2025:

March 31, 2026

The following table is a summary of the Company’s nonaccrual loans by major categories as of June 30, 2026 and December 31, 2025:

June 30, 2026

December 31, 2025

8 unchanged sentences

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 months ended March 31, 2026 and 2025:

For the Three Months Ended March 31,

The following table represents the accrued interest receivables written off by reversing interest income during the three and six months ended June 30, 2026 and 2025:

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(in thousands)

13 unchanged sentences

Notes to Consolidated Financial Statements

The following table presents an analysis of collateral-dependent loans of the Company as of March 31, 2026 and December 31, 2025:

March 31, 2026

The following table presents an analysis of collateral-dependent loans of the Company as of June 30, 2026 and December 31, 2025:

June 30, 2026

(in thousands)

11 unchanged sentences

Commercial and Industrial

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Allowance for Credit Losses

The following table summarizes the activity related to the allowance for credit losses for the three months ended March 31, 2026 and 2025 (in thousands):

March 31, 2026

(in thousands)

Lines of Credit

The following table summarizes the activity related to the allowance for credit losses for the three and six months ended June 30, 2026 and 2025 (in thousands):

Three Months Ended June 30, 2026

and Industrial

1 unchanged sentence

Beginning Balance

Recovery of Credit Loss

Net Provision for Credit Loss

Loans Charged-Off

1 unchanged sentence

Ending Balance

Three Months Ended June 30, 2025

Allowance for Credit Losses

Beginning Balance

Net Provision for Credit Loss

Loans Charged-Off

Recoveries Collected

Ending Balance

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

March 31, 2025

(in thousands)

Lines of Credit

Six Months Ended June 30, 2026

and Industrial

1 unchanged sentence

Beginning Balance

Recovery of Credit Loss

Net Provision for Credit Loss

Loans Charged-Off

1 unchanged sentence

Ending Balance

Six Months Ended June 30, 2025

Allowance for Credit Losses

Beginning Balance

Net Provision for Credit Loss

Loans Charged-Off

Recoveries Collected

Ending Balance

Modifications Made to Borrowers Experiencing Financial Difficulty

11 unchanged sentences

If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted.

Upon determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectable, the loan (or portion of the loan) is written off.

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 March 31, 2026, and December 31, 2025.

There were no modifications to borrower’s experiencing financial difficulty entered into during the three months ended March 31, 2026 and 2025 and no loans which had defaults during the three months ended March 31, 2026 and 2025 which have been modified due to the borrower experiencing financial difficulty.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Upon determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectable, the loan (or portion of the loan) is written off.

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, 2026, and December 31, 2025.

There were no modifications to borrower’s experiencing financial difficulty entered into during the three and six months ended June 30, 2026 and 2025 and no loans which had defaults during the three and six months ended June 30, 2026 and 2025 which have been modified due to the borrower experiencing financial difficulty.

Unfunded Commitments

For the three month periods ended March 31, 2026 and 2025, provision for credit losses on unfunded commitments totaled $- 0 -.

At March 31, 2026 and December 31, 2025, the liability for credit losses on off-balance-sheet credit exposures included in other liabilities was $ 25,000 .

For the three and six month periods ended June 30, 2026 and 2025, provision for credit losses on unfunded commitments totaled $- 0 -.

At June 30, 2026 and December 31, 2025, the liability for credit losses on off-balance-sheet credit exposures included in other liabilities was $ 25,000 .

Related Party Loans

2 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 three months ended March 31, 2026 and 2025 is as follows:

An analysis of the related party activity during the six months ended June 30, 2026 and 2025 is as follows:

(in thousands)

5 unchanged sentences

The Company generally requires an inspection of the property before disbursement of funds during the term of the construction loan and inspections are typically performed by one of the Company’s directors.

There is no revenue or expense recorded by the Company related to those services as the customer pays these fees through their closing costs.

There is no revenue or expenses recorded by the Company related to those services as the customer pays these fees through their closing costs.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Regulatory Matters

6 unchanged sentences

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

Management believes, as of March 31, 2026 and December 31, 2025, that the Company meets all capital adequacy requirements to which it is subject.

As of March 31, 2026 and December 31, 2025, 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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

capitalized, the Bank must maintain minimum total ratios as disclosed in the table below.

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

The Bank’s actual capital amounts and ratios as of March 31, 2026 and December 31, 2025 are also presented in the table below (dollar amounts in thousands):

Management believes, as of June 30, 2026 and December 31, 2025, that the Company meets all capital adequacy requirements to which it is subject.

As of June 30, 2026 and December 31, 2025, 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.

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

The Bank’s actual capital amounts and ratios as of June 30, 2026 and December 31, 2025 are also presented in the table below (dollar amounts in thousands):

Required to Be Well-

3 unchanged sentences

Action Provisions

March 31, 2026

June 30, 2026

Tier 1 Capital to Average Assets

7 unchanged sentences

Total Capital to Risk-Weighted Assets

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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 March 31, 2026 and December 31, 2025, the Company had made various commitments to extend credit totaling approximately $ 35,922,000 and $ 35,948,000 , respectively.

Of these commitments, approximately $ 18,364,000 and $ 17,425,000 are at variable rates as of March 31, 2026 and December 31, 2025, respectively.

As of June 30, 2026 and December 31, 2025, the Company had made various commitments to extend credit totaling approximately $ 46,099,000 and $ 35,948,000 , respectively.

Of these commitments, approximately $ 18,677,000 and $ 17,425,000 are at variable rates as of June 30, 2026 and December 31, 2025, 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.

3 unchanged sentences

The amount of collateral obtained, if considered necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Fair Value Measurements

10 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 March 31, 2026 and December 31, 2025 are summarized below:

March 31, 2026

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 are summarized below:

June 30, 2026

Fair Value Measurements

5 unchanged sentences

Corporate Bonds

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

December 31, 2025

6 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 March 31, 2026 and December 31, 2025.

There were no transfers into, out of, purchases, or sales of Level 3 securities during the three months ended March 31, 2026 and 2025.

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, 2026 and December 31, 2025.

There were no transfers into, out of, purchases, or sales of Level 3 securities during the three and six months ended June 30, 2026 and 2025.

Assets and Liabilities Measured on a Non-Recurring Basis

2 unchanged sentences

For collateral dependent loans, fair value is measured based on the value of the collateral securing these loans and is classified at a Level 3 in the fair value hierarchy.

Collateral dependent loans consist of one-to-four family mortgages secured by residential properties.

Collateral dependent loans consist of one-to-four family

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

mortgages and home equity lines of credit secured by residential properties.

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

7 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.

FIFTH DISTRICT BANCORP, INC.

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 March 31, 2026 and December 31, 2025:

March 31, 2026

The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis at June 30, 2026 and December 31, 2025:

June 30, 2026

Fair Value Measurements

7 unchanged sentences

Real Estate Owned

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

The following tables show significant unobservable inputs used in the fair value measurement of Level 3 assets:

Weighted Average

March 31, 2026

June 30, 2026

Collateral Dependent Loans

14 unchanged sentences

Cash and Cash Equivalents - Fair value approximates carrying value.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

Investment Securities Available-for-Sale - Fair value is obtained from an independent pricing service based on quoted market prices or quoted market prices of securities with similar characteristics, quoted prices of identical securities in less active markets, discounted cash flow techniques, or matrix pricing models.

3 unchanged sentences

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

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

Deposits - For demand deposit, 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.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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

March 31, 2026

June 30, 2026

Fair Value Measurements

19 unchanged sentences

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.

The Company established an ESOP for the exclusive benefit of eligible employees.

7 unchanged sentences

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

Contributions to the ESOP totaled $ 112,000 during the three months ended March 31, 2026 and 2025, respectively.

Compensation expense is recognized over the service period based on the average fair value of the shares and totaled $ 84,000 and $ 70,000 for the three months ended March 31, 2026 and 2025, respectively.

The fair value of the unallocated ESOP shares totaled $ 5,842,000 at March 31, 2026 and $ 6,008,000 at December 31, 2025.

Contributions to the ESOP totaled $ 112,000 and $ 224,000 during the three and six months ended June 30, 2026 and 2025, respectively.

Compensation expense is recognized over the service period based on the average fair value of the shares and totaled $ 85,000 and $ 168,000 for the three and six months ended June 30, 2026, and $ 68,000 and $ 138,000 for the three and six months ended June 30, 2025.

The fair value of the unallocated ESOP shares totaled $ 6,301,000 at June 30, 2026 and $ 6,008,000 at December 31, 2025.

Earnings per Share

Income per common share was computed based on the following for the periods ended March 31, 2026 and 2025:

Income per common share was computed based on the following for the three and six months ended June 30, 2026 and 2025:

Three Months Ended

Six Months Ended

(In thousands, except per share data)

Net Income (Loss) Available to Common Stockholders

Net Income Available to Common Stockholders

Weighted Average Common Shares Outstanding

1 unchanged sentence

Weighted Average Shares

Income (Loss) per Common Share - Basic and Diluted

Income 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 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 March 31, 2026 and December 31, 2025.

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

1 unchanged sentence

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