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].
Fifth District Bancorp, Inc.(FDSB) - 2025 Q2 - Quarterly Report