Financial Position - Total assets increased by $12.2 million, or 2.3%, to $539.5 million at September 30, 2025, compared to $527.3 million at December 31, 2024[153] - Total stockholders' equity increased by $5.5 million, or 4.4%, to $131.3 million at September 30, 2025, primarily due to an increase in retained earnings[160] - Deposits increased by $4.7 million, or 1.2%, to $396.2 million at September 30, 2025, with certificates of deposit rising by $5.3 million, or 2.2%[158] - Cash and cash equivalents decreased by $3.5 million, or 9.3%, to $34.4 million at September 30, 2025, primarily due to the purchase of investments available for sale[154] Loan Performance - Loans receivable, net, rose by $12.0 million, or 3.3%, to $379.3 million at September 30, 2025, with loan originations totaling $45.1 million during the nine months ended September 30, 2025[156] - Average loans receivable, net, increased by $11.8 million, or 3.2%, from the three months ended September 30, 2024, with an average yield on loans rising to 4.49%[166] - Total non-performing loans decreased to $198,000 at September 30, 2025, from $647,000 at September 30, 2024[173] - The provision for credit losses on loans was $0 for the three months ended September 30, 2025, compared to a provision of $110,000 for the same period in 2024[172] - The provision for credit losses on loans was $0 for the nine months ended September 30, 2025, compared to a provision of $1.1 million for the same period in 2024[188] - The allowance for credit losses on loans represented 0.45% of total loans at September 30, 2025, compared to 0.46% at September 30, 2024[188] Income and Expenses - Net interest income for the three months ended September 30, 2025, was $3,345,000, compared to $2,883,000 for the same period in 2024[162] - Net interest income increased by $462,000, or 16.0%, to $3.3 million for the three months ended September 30, 2025, reflecting an increase in the interest rate spread to 2.09%[170] - For the nine months ended September 30, 2025, net income was $3.5 million, an increase of $4.8 million, or 386.7%, compared to a net loss of $1.2 million for the same period in 2024[180] - Interest and dividend income increased by $500,000, or 9.6%, to $5.7 million for the three months ended September 30, 2025, compared to $5.2 million for the same period in 2024[165] - Interest and dividend income for the nine months ended September 30, 2025, increased by $2.2 million, or 15.9%, to $16.4 million compared to $14.1 million for the same period in 2024[181] - Total interest expense increased by $24,000 or 0.3% to $7.0 million for the nine months ended September 30, 2025, compared to $6.9 million for the same period in 2024[186] - Net interest income rose by $2.2 million or 30.8% to $9.4 million for the nine months ended September 30, 2025, driven by an increase in the interest rate spread to 2.00% from 1.67%[187] - Noninterest income totaled $4.2 million for the nine months ended September 30, 2025, an increase of $4.4 million or 1922.1% from a loss of $231,000 in the same period of 2024[190] - Noninterest expense decreased by $1.1 million, or 26.0%, to $3.1 million for the three months ended September 30, 2025, primarily due to a significant decrease in charitable contributions[175] - Noninterest expense increased by $318,000 or 3.3% to $10.1 million for the nine months ended September 30, 2025, primarily due to a $1.2 million or 24.2% increase in salaries and employee benefits[193] Interest Rate Risk - As of September 30, 2025, a 200 basis point increase in market interest rates would result in a 17.63% decrease in net interest income, while a 200 basis point decrease would lead to a 4.94% increase[218] - The net interest income forecast at different interest rate changes shows a maximum income of $13,998,000 at the current level, decreasing to $9,019,000 with a 400 basis point increase[217] - The methodologies used for measuring interest rate risk have inherent shortcomings, as they assume constant composition of interest-sensitive assets and liabilities[219] - The calculations for EVE and net interest income may not accurately reflect the fair values of financial instruments, particularly when market interest rates decrease[220] - The company acknowledges that the shape of the yield curve changes constantly, affecting the correlation between asset pricing and market interest rates[219] - The interest rate risk exposure indicated by the EVE and NII tables is not intended to provide a precise forecast of actual results[219] - The company incorporates quantitative and qualitative disclosures about market risk in its management discussions[221] Capitalization - At September 30, 2025, the Bank was categorized as well-capitalized under applicable bank regulatory capital guidelines[203] - The Bank had $26.8 million of outstanding commitments to originate loans as of September 30, 2025[204]

Core Viewpoint - Fifth District Bancorp, Inc. has authorized a stock repurchase program for up to 555,947 shares, which represents 10% of the currently outstanding shares [1]. Group 1: Stock Repurchase Program - The company plans to conduct the repurchases on the open market, utilizing a trading plan under SEC Rule 10b5-1, subject to market conditions [2]. - There is no guarantee regarding the number of shares that may ultimately be repurchased, and the company reserves the right to suspend or discontinue the program at any time [2]. Group 2: Company Background - Fifth District Savings Bank, originally chartered in 1926, is a federally-chartered stock savings bank operating from its main office and six branch offices located in Orleans, St. Tammany, and Jefferson Parishes [3].

Financial Position - Total assets increased by $12.5 million, or 2.4%, to $539.8 million at June 30, 2025, compared to $527.3 million at December 31, 2024[157]. - Cash and cash equivalents decreased by $10.2 million, or 27.0%, to $27.7 million at June 30, 2025, primarily due to the purchase of investments and loan origination[158]. - Investment securities available-for-sale increased by $7.4 million, or 8.0%, to $100.4 million at June 30, 2025, with securities purchased totaling $12.5 million during the six months[159]. - Loans receivable, net, increased by $12.3 million, or 3.3%, to $379.6 million at June 30, 2025, with loan originations of $33.1 million during the same period[160]. - Deposits increased by $6.7 million, or 1.7%, to $398.2 million at June 30, 2025, driven by new customer activity[162]. - Total stockholders' equity increased by $5.1 million, or 4.1%, to $130.9 million at June 30, 2025, primarily due to retained earnings increasing by $3.2 million[163]. Income and Earnings - Net interest income for the three months ended June 30, 2025, was $3,148,000, compared to $2,274,000 for the same period in 2024[165]. - Net interest income increased by $874,000, or 38.4%, to $3.1 million for the three months ended June 30, 2025[173]. - Net income for the three months ended June 30, 2025, was $3.1 million, an increase of $2.4 million, or 357.7%, compared to $683,000 for the same period in 2024[167]. - Interest and dividend income increased by $839,000, or 18.1%, to $5.5 million for the three months ended June 30, 2025, compared to $4.6 million for the same period in 2024[168]. - Net interest income increased by $1.8 million, or 40.8%, to $6.1 million for the six months ended June 30, 2025, compared to $4.3 million for the same period in 2024[189]. - Noninterest income totaled $3.7 million for the three months ended June 30, 2025, an increase of $3.3 million, or 825.0%, from $400,000 for the same period in 2024[176]. - Noninterest income totaled $4.0 million for the six months ended June 30, 2025, an increase of $4.5 million, or 925.9%, from a loss of $482,000 for the same period in 2024[192]. Expenses and Losses - Noninterest expense increased by $1.0 million, or 36.4%, to $3.8 million for the three months ended June 30, 2025, compared to $2.8 million for the same period in 2024[177]. - Noninterest expense increased by $1.4 million, or 25.4%, to $6.9 million for the six months ended June 30, 2025, compared to $5.5 million for the same period in 2024[194]. - The provision for credit losses on loans was $0 for the three months ended June 30, 2025, compared to a recovery of $1.0 million for the same period in 2024[174]. - The provision for credit losses on loans was $0 for the six months ended June 30, 2025, compared to a recovery of $1.1 million for the same period in 2024[190]. - Total non-performing loans were $1.3 million at June 30, 2025, compared to $1.1 million at June 30, 2024[175]. - Total non-performing loans increased to $1.3 million at June 30, 2025, from $1.1 million at June 30, 2024[191]. Interest Rate Risk - The average yield on interest-earning assets increased from 3.97% for the six months ended June 30, 2024, to 4.32% for the same period in 2025[189]. - The average balance of interest-bearing deposits decreased by $4.4 million, or 1.1%, to $393.4 million for the six months ended June 30, 2025[189]. - As of June 30, 2025, a 200 basis point increase in market interest rates would result in an 18.55% decrease in net interest income, while a 200 basis point decrease would lead to a 6.73% increase in net interest income[218]. - The forecasted net interest income for a 200 basis point increase in interest rates is $10,974,000, reflecting an 18.55% decrease from the baseline[217]. - The baseline net interest income at current levels is projected to be $13,473,000[217]. - A 400 basis point decrease in interest rates would yield a net interest income of $14,969,000, representing an 11.10% increase from the baseline[217]. - The methodologies used for measuring interest rate risk may not accurately reflect actual market conditions, as they assume constant asset and liability compositions[219]. - Changes in market interest rates can affect the fair values of financial instruments, with decreases potentially increasing the fair values of loans, deposits, and borrowings[220]. - The company acknowledges that the EVE and NII measurements are not precise forecasts and may differ from actual results due to the dynamic nature of the yield curve[219]. - The company incorporates quantitative and qualitative disclosures about market risk in its management discussions[221]. Capitalization - At June 30, 2025, the Bank was categorized as well-capitalized under applicable bank regulatory capital guidelines[205]. - The Bank had $27.9 million of outstanding commitments to originate loans as of June 30, 2025[206]. - The effective tax rate was 21% for both periods, with a decrease in the provision for income taxes by $273,000, or 150.0%, to ($91,000) for the three months ended June 30, 2025[178][179]. - The effective tax rate was 21% for both periods, with a decrease in the tax benefit of $48,000, or 40.3%, to ($71,000) for the six months ended June 30, 2025[195].

Core Insights - The article introduces Adam Peithman as a new contributing analyst for Seeking Alpha, inviting others to share investment ideas for publication [1] - The focus is on deep value and special situations in the small-cap and micro-cap sectors, particularly companies trading below tangible book value or holding excess capital [2] - The analyst emphasizes a skeptical approach to investing, influenced by a background in philosophy [2] Company and Industry Focus - The investment strategy includes areas such as thrift conversions, community banks, and shipping, where value is often overlooked [2] - The article highlights the importance of understanding the financial health of companies, particularly those with tangible assets and capital reserves [2]

Financial Position - Total assets increased by $3.8 million, or 0.7%, to $531.1 million at March 31, 2025, compared to $527.3 million at December 31, 2024[160] - Cash and cash equivalents decreased by $7.8 million, or 20.6%, to $30.1 million at March 31, 2025, primarily due to the purchase of investments and origination of commercial loans[161] - Loans receivable, net, increased by $9.0 million, or 2.5%, to $376.3 million at March 31, 2025, with loan originations totaling $17.8 million during the period[163] - Deposits increased by $2.9 million, or 0.7%, to $394.4 million at March 31, 2025, with certificates of deposit increasing by $601,000, or 0.25%[164] - Total stockholders' equity increased by $1.5 million, or 1.2%, to $127.3 million at March 31, 2025, primarily due to a decline in accumulated other comprehensive loss[167] Income and Earnings - Net income for the three months ended March 31, 2025, was $78,000, an increase of $1.2 million, or 106.9%, compared to a net loss of $1.1 million for the same period in 2024[171] - Interest income increased by $909,000, contributing to the rise in net income, alongside a $1.2 million increase in non-interest income[171] - Interest and dividend income increased by $909,000, or 21.0%, to $5.2 million for the three months ended March 31, 2025, compared to $4.3 million for the same period in 2024[172] - Noninterest income totaled $262,000 for the three months ended March 31, 2025, an increase of $1.2 million, or 129.2%, from a loss of $897,000 in the same period in 2024[180] - Net interest income increased by $889,000, or 43.4%, to $2.9 million, reflecting an increase in the interest rate spread to 1.91%[176] Interest Rate and Risk Management - The net interest margin improved to 2.41% for the three months ended March 31, 2025, compared to 1.81% for the same period in 2024[170] - Average interest-earning assets increased to $494.7 million, with a net interest income of $2.937 million for the three months ended March 31, 2025[169] - The company adopted the CECL methodology for the allowance for credit losses effective January 1, 2023, estimating lifetime credit losses in loans[156] - Average loans receivable, net, increased by $5.3 million, or 1.5%, with an average yield on loans rising to 4.40% for the three months ended March 31, 2025, from 4.06% in 2024[173] - The average balance of investment securities available-for-sale increased by $28.3 million, or 42.7%, to $94.6 million, with the average yield rising to 3.86% from 2.39%[174] Non-Performing Loans and Expenses - Total non-performing loans were $758,000 at March 31, 2025, compared to $753,000 at March 31, 2024[179] - Noninterest expense increased by $416,000, or 15.5%, to $3.1 million, primarily due to a $258,000 increase in salaries and employee benefits[181] - The provision for income taxes increased by $322,000, or 107.0%, to $21,000, due to a $1.5 million increase in pretax income[182] Capital and Commitments - At March 31, 2025, the Bank was categorized as well-capitalized under applicable bank regulatory capital guidelines[191] - The Bank had $24.6 million of outstanding commitments to originate loans, including $9.9 million for construction loans and $14.2 million for home equity lines of credit[192] Interest Rate Sensitivity - As of March 31, 2025, a 200 basis point increase in market interest rates would result in a 27.48% decrease in EVE, while a 200 basis point decrease would lead to a 19.34% increase in EVE[200] - The estimated net interest income for Year 1 at a 200 basis point increase in interest rates is projected to be $10,749, reflecting a 15.70% decrease from the current level[202] - Conversely, a 200 basis point decrease in interest rates would increase net interest income to $13,325, representing a 4.50% increase[203] - The EVE ratio at the current level is 23.51%[200] - The estimated EVE at a 400 basis point increase in interest rates would be $56,785, showing a decrease of 49.22%[200] - The estimated EVE at a 400 basis point decrease in interest rates would be $144,080, indicating an increase of 28.86%[200] - The company acknowledges that the methodologies used for measuring interest rate risk have inherent shortcomings, which may not accurately reflect actual market conditions[204] - The calculations for EVE and net interest income may not represent the fair values of financial instruments, as changes in market rates can affect the fair values of loans, deposits, and borrowings[205] - The board of directors has established policy limits within which all estimated changes in net interest income are presented[201] - The company incorporates quantitative and qualitative disclosures about market risk in its management discussion and analysis[206]

Financial Position - Total assets increased by $46.5 million, or 9.7%, to $527.3 million at December 31, 2024, compared to $480.8 million at December 31, 2023[190]. - Total stockholders' equity increased by $48.0 million, or 61.7%, to $125.8 million at December 31, 2024, primarily due to the sale of stock in the initial public offering totaling $53.2 million[195]. - Fifth District Bancorp had liquid assets of $21.8 million as of December 31, 2024[235]. - At December 31, 2024, Fifth District was categorized as well-capitalized under regulatory capital guidelines[236]. - The consolidated balance sheets of Fifth District Bancorp, Inc. as of December 31, 2024, and 2023, present a fair financial position in accordance with U.S. GAAP[244]. Cash and Cash Equivalents - Cash and cash equivalents rose by $18.6 million, or 96.4%, to $37.9 million at December 31, 2024, primarily due to cash received from the initial public offering[191]. - Cash flows from operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of $18.6 million for the year ended December 31, 2024[233]. Loans and Credit - Loans receivable, net, increased by $2.3 million, or 0.6%, to $367.3 million at December 31, 2024[193]. - Outstanding commitments to originate loans totaled $34.6 million as of December 31, 2024, including HELOCs and construction loans[237]. - Total non-performing loans remained at $1.1 million at December 31, 2024, consistent with the previous year[212]. - The allowance for credit losses on loans as a percentage of total loans decreased to 0.46% at December 31, 2024, from 0.76% in 2023[188]. - The allowance for credit losses on loans represented 0.46% of total loans at December 31, 2024, down from 0.76% at December 31, 2023[210]. Income and Expenses - Net income for the year ended December 31, 2024, was a loss of $1.1 million, a decrease of $1.9 million, or 235.3%, compared to a net income of $797,000 for the year ended December 31, 2023[202]. - Interest and dividend income increased by $2.9 million, or 17.4%, to $19.3 million for the year ended December 31, 2024, compared to $16.4 million for the year ended December 31, 2023[203]. - Total interest expense increased by $2.9 million, or 44.9%, to $9.2 million for the year ended December 31, 2024, compared to $6.4 million for the year ended December 31, 2023[207]. - Net interest income after recovery of credit losses was $11.3 million for the year ended December 31, 2024[187]. - Non-interest income decreased by $962,000, or 98.9%, to $11,000 for the year ended December 31, 2024, primarily due to a $1.1 million realized loss on the sale of investment securities[213]. - Non-interest expense increased by $2.3 million, or 22.2%, to $12.7 million for the year ended December 31, 2024, driven by a $761,000 increase in salaries and employee benefits, and a $1.2 million increase in charitable contributions[214]. - The provision for income taxes decreased by $507,000, or 347.0%, to ($358,000) for the year ended December 31, 2024, due to a $2.4 million decrease in pretax income[214]. Investment and Securities - Investment securities available-for-sale increased by $25.1 million, or 36.9%, to $93.0 million at December 31, 2024[192]. - The average yield on loans increased to 4.16% for the year ended December 31, 2024, from 3.88% for the year ended December 31, 2023[204]. - The average balance of certificates of deposit increased from $229.8 million as of December 31, 2023, to $235.9 million as of December 31, 2024[208]. - Certificates of deposit scheduled to mature on or before December 31, 2025 totaled $214.2 million, with expectations of substantial renewal[237]. Operational Strategy - The company intends to grow organically and through opportunistic branching and/or acquisitions to enhance franchise value and stockholder returns[179]. - The efficiency ratio was 126.28% for the year ended December 31, 2024, compared to 91.66% in 2023[188]. Audit and Compliance - The audit was conducted in accordance with PCAOB standards to ensure reasonable assurance regarding the absence of material misstatements[246]. - The Company has been audited since 2023, indicating a continuity in financial oversight[248]. Economic Impact - The estimated economic value of equity (EVE) would decrease by 28.02% in the event of a 200 basis point increase in market interest rates[223]. - The net interest income is projected to decrease by 13.56% in the event of a 200 basis point increase in market interest rates[226].

Financial Position - Total assets increased by $43.0 million, or 9.0%, to $523.8 million at September 30, 2024, compared to $480.8 million at December 31, 2023[156] - Cash and cash equivalents rose by $14.8 million, or 76.6%, to $34.1 million at September 30, 2024, primarily due to cash received from the initial public offering[157] - Investment securities available-for-sale increased by $25.9 million, or 38.1%, to $93.8 million at September 30, 2024[158] - Loans receivable, net, increased by $2.7 million, or 0.7%, to $367.7 million at September 30, 2024, with loan originations totaling $26.9 million[159] - Total stockholders' equity increased by $50.1 million, or 64.4%, to $127.9 million at September 30, 2024, driven by the sale of stock in the initial public offering totaling $53.2 million[161] - Deposits decreased by $5.9 million, or 1.5%, to $384.1 million at September 30, 2024, with significant changes in various account types[160] Credit Losses and Internal Controls - The allowance for credit losses decreased by $1.1 million due to an evolving economic outlook and adjustments in peer group loss rates[155] - The company identified material weaknesses in internal control over financial reporting related to the allowance for credit losses as of September 30, 2024[150] - The company plans to remediate identified weaknesses by enhancing control procedures and independent reviews[152] - The company adopted the Current Expected Credit Loss (CECL) methodology effective January 1, 2023, impacting the allowance for credit losses[149] - The allowance for credit losses on loans represented 0.46% of total loans at September 30, 2024, down from 0.76% at September 30, 2023[176] - Total non-performing loans increased to $647,000 at September 30, 2024, compared to $0 at September 30, 2023[178] Income and Expenses - Net income for the three months ended September 30, 2024, was a loss of $788,000, a decrease of $827,000, or 2,120.5%, compared to a net income of $39,000 for the same period in 2023[168] - Interest and dividend income increased by $1.0 million, or 25.0%, to $5.2 million for the three months ended September 30, 2024, compared to $4.2 million for the same period in 2023[170] - Net interest income increased by $530,000, or 22.5%, to $2.9 million for the three months ended September 30, 2024, compared to $2.4 million for the same period in 2023[175] - Noninterest income totaled $252,000 for the three months ended September 30, 2024, an increase of $3,000, or 1.2%, from $249,000 for the same period in 2023[179] - Noninterest expense increased by $1.6 million, or 59.9%, to $4.2 million for the three months ended September 30, 2024, compared to $2.7 million for the same period in 2023[180] - Net income (loss) for the nine months ended September 30, 2024, was ($1.2) million, a decrease of $1.9 million, or 299.8%, compared to $619,000 for the same period in 2023[182] - Interest and dividend income increased by $2.0 million, or 16.1%, to $14.1 million for the nine months ended September 30, 2024[183] - Net interest income decreased by $602,000, or 7.7%, to $7.2 million for the nine months ended September 30, 2024[188] - Noninterest expense increased by $1.9 million, or 24.2%, to $9.8 million for the nine months ended September 30, 2024[195] Interest Rate Risk Management - The company maintains a high liquidity level and aims to grow core deposit accounts as part of its interest rate risk management strategy[208] - The board of directors evaluates interest rate risk and establishes policies for managing it during regular meetings[207] - The company does not engage in hedging activities and does not anticipate entering into such transactions in the future[209] - The methodologies used for measuring interest rate risk have inherent shortcomings, as they rely on assumptions that may not reflect actual market conditions[218] - Changes in market interest rates can affect the fair values of the company's loans, deposits, and borrowings, which may not be captured in EVE and net interest income calculations[219] Future Commitments and Economic Value - As of September 30, 2024, the company had $23.6 million in outstanding commitments to originate loans, including $8.4 million for construction loans and $13.4 million in unused home equity lines of credit[206] - The company expects a substantial portion of the $215.2 million in maturing certificates of deposit to be renewed, but may raise interest rates on deposits if retention is low[206] - The estimated economic value of equity (EVE) would decrease by 28.48% with a 200 basis point increase in market interest rates, and increase by 20.27% with a 200 basis point decrease[213] - The company’s net interest income would decrease by 16.31% with a 200 basis point increase in market interest rates, and increase by 2.52% with a 200 basis point decrease[217] - The EVE as a percentage of assets was 23.16% at the level interest rate scenario[212]