What changed in this filing

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Item 1. Financial Statements

2025-08-12 compared with 2025-05-13 · 153 added, 118 removed, 726 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, 2025 and December 31, 2024

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

Common Stock - $ 0.01 Par Value;

20,000,000 Shares Authorized:

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

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

Additional Paid-In Capital

9 unchanged sentences

Three Months Ended

Six Months Ended

Interest and Dividend Income

8 unchanged sentences

Recovery of Credit Losses on Loans

Total Recovery of Credit Losses

Net Interest Income After Recovery of Credit Losses

4 unchanged sentences

Loss on Investments Securities

Gain on Sale of Premises and Equipment

Gain on Sale of Real Estate Owned

Gain on Insurance Proceeds

Total Non-Interest Income (Loss)

6 unchanged sentences

Data Processing

Charitable Contributions

Total Non-Interest Expense

5 unchanged sentences

FIFTH DISTRICT BANCORP, INC.

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)

Three Months Ended

Six Months Ended

Net Income (Loss)

4 unchanged sentences

Total Other Comprehensive Income

Comprehensive Income (Loss)

Comprehensive Income

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

4 unchanged sentences

Stockholders'

(in thousands)

Balance at December 31, 2023

Other Comprehensive Income

Balance at March 31, 2024

Balance at June 30, 2024

Balance at December 31, 2024

Other Comprehensive Income

Issuance of Common Stock

ESOP Shares Released for Allocation

Balance at June 30, 2025

Comprehensive

Stockholders'

Balance at March 31, 2024

Other Comprehensive Income

Balance at June 30, 2024

Balance at March 31, 2025

Other Comprehensive Income

ESOP Shares Released for Allocation

Balance at June 30, 2025

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

3 unchanged sentences

(in thousands)

Three Months Ended

Six Months Ended

(in thousands)

4 unchanged sentences

Recovery of Credit Losses

Gain on Insurance Proceeds

Gain on Sale of Premises and Equipment

Gain on Sale of Real Estate Owned

17 unchanged sentences

Purchases of Premises and Equipment

Net Cash Provided by (Used in) Investing Activities

Net Cash Used in Investing Activities

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

2 unchanged sentences

(in thousands)

Three Months Ended

Six Months Ended

Cash Flows from Financing Activities

4 unchanged sentences

Net Cash Provided by Financing Activities

Net Increase (Decrease) in Cash and Cash Equivalents

Net Decrease in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning of Year

16 unchanged sentences

Additionally, the Company contributed 100,000 shares to a newly formed charitable foundation.

The Bank’s employee stock ownership plan (“ESOP”) purchased 444,758 shares of the common stock sold by the Company, which was equal to 8 % of the 5,559,473 shares of common stock issued by the Company.

The Bank’s employee stock ownership plan (the “ESOP”) purchased 444,758 shares of the common stock sold by the Company, which was equal to 8 % of the 5,559,473 shares of common stock issued by the Company.

The ESOP purchased the shares using a loan from the Company.

8 unchanged sentences

GAAP) and predominant practices within the banking industry.

The unaudited consolidated financial statements of the Company were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes for a complete presentation of financial condition, results of operations, comprehensive income (loss), changes in stockholders’ equity and cash flows in conformity with U.S.

The unaudited consolidated financial statements of the Company were prepared in accordance with instructions for Form 10-Q and SEC Regulation S-X and do not include information or footnotes for a complete presentation of financial condition, results of operations, comprehensive income, changes in stockholders’ equity and cash flows in conformity with U.S.

In the opinion of management, the unaudited consolidated financial statements include all adjustments considered necessary to present fairly the Company’s financial position.

The results of operations for the three months ended March 31, 2025 and 2024 are not necessarily indicative of the results which may be expected for the entire fiscal year.

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

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

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

Principles of Consolidation

The consolidated financial statements as of and for the period ended March 31, 2025 include the amounts of Fifth District Bancorp and its wholly-owned subsidiary, Fifth District.

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

All intercompany transactions and balances have been eliminated.

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

References herein

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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

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

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

Use of Estimates

13 unchanged sentences

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

Cash and due from banks include bank deposit accounts aggregating approximately $ 20,887,000 and $ 27,315,000 in excess of the Federal Deposit Insurance Corporation limit of $ 250,000 per insured account on March 31, 2025 and December 31, 2024, respectively.

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

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, 2025, and December 31, 2024.

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

Investment Securities

2 unchanged sentences

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

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

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

Any decision to sell a security classified as available-

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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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

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

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

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

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

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 statements of operations.

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

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

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

1 unchanged sentence

Restricted Stock

Restricted stock is stock from the Federal Home Loan Bank (FHLB) and First National Bankers Bank (FNBB), which is restricted as to its marketability.

Restricted stock is stock in the Federal Home Loan Bank (FHLB) and First National Bankers Bank (FNBB), which is restricted as to its marketability.

Because no ready market exists for these investments and they have no quoted market value, the Company’s investment in these stocks is carried at cost.

9 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, 2025 and December 31, 2024, there was no allowance for credit loss related to the available-for-sale portfolio.

Accrued interest receivable on available-for-sale securities totaled approximately $ 407,000 and $ 348,000 at March 31, 2025 and December 31, 2024, respectively, and was excluded from the estimate of credit losses.

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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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

Loans Receivable

1 unchanged sentence

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

Accrued interest receivable related to loans totaled approximately $ 1,809,000 and $ 1,619,000 at March 31, 2025, and December 31, 2024, respectively, and was reported in accrued interest receivable on the balance sheets.

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

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

39 unchanged sentences

These loans are often originally secured by blanket UCC-1 filings.

When the loan is purchased, the Bank purchases 100 % of the loan and remits 97 % of the loan balance to the seller and the seller establishes a reserve deposit account with the Bank equal to 3 % of the loan balance.

If a loan becomes delinquent, the Bank withdraws payment from the reserve deposit account.

When the loan is purchased, the Company purchases 100 % of the loan and remits 97 % of the loan balance to the seller and the seller establishes a reserve deposit account with the Bank equal to 3 % of the loan balance.

If a loan becomes delinquent, the Company withdraws payment from the reserve deposit account.

If a loan becomes 90 days delinquent, the seller typically replaces the delinquent loan with a performing loan of equal or greater balance (although this is not a contractual obligation of the seller).

18 unchanged sentences

Bank Owned Life Insurance

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

At March 31, 2025 and December 31, 2024, life insurance contracts totaled approximately $ 10,773,000 and $ 10,685,000 , respectively.

Appreciation in the cash surrender value amounted to approximately $ 88,000 and $ 83,000 for the three months ended March 31, 2025 and 2024, respectively.

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

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

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

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

15 unchanged sentences

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

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

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

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

8 unchanged sentences

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

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

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

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

1 unchanged sentence

Notes to Consolidated Financial Statements

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

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

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

1 unchanged sentence

federal examinations for years prior to 2021.

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

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.

2 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, 2025.

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

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

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

Revenue Recognition

17 unchanged sentences

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

Advertising and promotional expenses totaled approximately $ 19,000 and $ 28,000 for the three months ended March 31, 2025 and 2024, respectively.

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

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, 2025 and 2024, the Company did not incur any direct-response advertising costs.

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

Segment Reporting

14 unchanged sentences

The Company does not expect these amendments 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 financial position, results of operations or cash flows.

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.

1 unchanged sentence

Investment Securities

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

March 31, 2025

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

June 30, 2025

(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, 2025, and December 31, 2024:

March 31, 2025

June 30, 2025

With Losses Under

13 unchanged sentences

Collateralized Mortgage Obligations

At March 31, 2025, 76 of the Company’s available-for-sale securities had unrealized losses totaling 9.3 % of the individual securities’ amortized cost basis and 7.1 % of the Company’s total amortized cost basis of the investment securities portfolio.

At March 31, 2025, 57 of these 76 securities had been in a continuous loss position for over 12 months.

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

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

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

At December 31, 2024, 57 of the 80 securities had been in a continuous loss position over 12 months.

The unrealized losses of these securities are believed to be caused by interest rate increases and changing market conditions and the Company does not intend to sell the securities, and it is not likely to be required to sell these securities prior to maturity.

The unrealized losses of these securities are believed to be caused by market interest rate increases and changing market conditions and the Company does not intend to sell the securities, and it is not likely to be required to sell these securities prior to maturity.

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

4 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, 2025 or December 31, 2024.

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

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

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

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, 2025.

The Company sold $ 18,685,000 securities available-for-sale and recorded a loss of $ 1,144,000 during the three months ended March 31, 2024.

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

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

FIFTH DISTRICT BANCORP, INC.

1 unchanged sentence

Restricted Stock

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

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

(in thousands)

2 unchanged sentences

Loans Receivable and Allowance for Credit Losses

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

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

(in thousands)

8 unchanged sentences

Total Loans Receivable, Net

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

March 31, 2025

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

June 30, 2025

Loans 90 Days or

28 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, 2025:

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

Term Loans by Year of Origination

49 unchanged sentences

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

March 31, 2025

June 30, 2025

December 31, 2024

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, 2025 and 2024:

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, 2025 and 2024:

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, 2025 and December 31, 2024:

March 31, 2025

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

June 30, 2025

(in thousands)

14 unchanged sentences

Allowance for Credit Losses

The following table summarizes the activity related to the allowance for credit losses for the three months ended March 31, 2025 and 2024 (in thousands):

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

Three Months Ended

Loans / Lines

Three Months Ended March 31, 2025

June 30, 2025

Allowance for Credit Losses

4 unchanged sentences

Ending Balance

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Allowance for Credit Losses

4 unchanged sentences

Ending Balance

Six Months Ended

Loans / Lines

June 30, 2025

Allowance for Credit Losses

Beginning Balance

Recovery of Credit Loss

Loans Charged-Off

Recoveries Collected

Ending Balance

Six Months Ended June 30, 2024

Allowance for Credit Losses

Beginning Balance

Recovery of Credit Loss

Loans Charged-Off

Recoveries Collected

Ending Balance

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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.

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 March 31, 2025, and December 31, 2024.

There were no modifications to borrower’s experiencing financial difficulty entered into during the three months ended March 31, 2025 and 2024 and no loans which had defaults during the three months ended March 31, 2025 and 2024 which have been modified due to the borrower experiencing financial difficulty.

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

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

Unfunded Commitments

For the three month periods ended March 31, 2025 and 2024, provision for credit losses on unfunded commitments totaled $- 0 -.

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

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

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

Related Party Loans

In the normal course of business, loans are made to officers and directors of the Company, as well as to their affiliates.

Such loans are made in the ordinary course of business with substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons.

Such loans are made in the ordinary course of business with substantially the same terms (including

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

interest rates and collateral) as those prevailing at the time for comparable transactions with other persons.

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, 2025 and 2024 is as follows:

An analysis of the related party activity during the six months ended June 30, 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

Related Party Other

1 unchanged sentence

There is no revenue or expense 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, 2025 and December 31, 2024, that the Company meets all capital adequacy requirements to which it is subject.

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

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

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

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 have changed the Bank’s prompt corrective action category.

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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

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

Required to Be Well-

3 unchanged sentences

Action Provisions

March 31, 2025

June 30, 2025

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, 2025 and December 31, 2024, the Bank had made various commitments to extend credit totaling approximately $ 25,908,000 and $ 34,607,000 , respectively.

Of these commitments, approximately $ 14,209,000 and $ 13,372,000 are at variable rates as of March 31, 2025 and December 31, 2024, respectively.

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

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

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, 2025 and December 31, 2024 are summarized below:

March 31, 2025

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

June 30, 2025

Fair Value Measurements

5 unchanged sentences

Corporate Bonds

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

December 31, 2024

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, 2025 and December 31, 2024.

There were no transfers into, out of, purchases, or sales of Level 3 securities during the three months ended March 31, 2025 and 2024.

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

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

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

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

mortgages secured by residential properties.

Collateral dependent loans consist of one-to-four family mortgages 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.

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

March 31, 2025

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 June 30, 2025 and December 31, 2024:

June 30, 2025

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, 2025

June 30, 2025

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.

6 unchanged sentences

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 financial instruments are as follows:

March 31, 2025

June 30, 2025

Fair Value Measurements

5 unchanged sentences

Loans Receivable, Net

Bank Owned Life Insurance

Financial Liabilities

7 unchanged sentences

Loans Receivable, Net

Bank Owned Life Insurance

Financial Liabilities

3 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.

In connection with the Conversion, 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, 2025.

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

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

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

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

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

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

Earnings per Share

1 unchanged sentence

Three Months Ended

Six Months Ended

(In thousands, except per share data)

4 unchanged sentences

Income per Common Share - Basic and Diluted

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

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, 2025 and December 31, 2024.

FIFTH DISTRICT BANCORP, INC.

Notes to Consolidated Financial Statements

financial statements.

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