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].
Fifth District Bancorp, Inc.(FDSB) - 2024 Q4 - Annual Report