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]
Fifth District Bancorp, Inc.(FDSB) - 2025 Q3 - Quarterly Report