Financial Performance - Net income for the year ended December 31, 2025, was $4.1 million, compared to a net loss of $1.1 million in 2024[201]. - Net income for the year ended December 31, 2025, was $4.1 million, an increase of $5.2 million, or 479.2%, compared to a net loss of $1.1 million for the year ended December 31, 2024[215]. - Net interest income rose to $12.8 million for the year ended December 31, 2025, compared to $10.1 million in 2024, reflecting an increase of 27.5%[201]. - Net interest income increased by $2.8 million, or 27.8%, to $12.8 million for the year ended December 31, 2025[221]. - Total non-interest income increased to $4.4 million in 2025 from $11,000 in 2024[201]. - Non-interest income increased by $4.4 million, or 4017.3%, to $4.4 million for the year ended December 31, 2025, compared to $11,000 for the year ended December 31, 2024[225]. - Total non-interest expense rose by $370,000, or 2.9%, to $13.1 million for the year ended December 31, 2025, primarily due to a $958,000 increase in salaries and employee benefits, which is a 14.3% increase[226]. Asset Quality - Non-performing loans as a percentage of total loans decreased to 0.14% in 2025 from 0.29% in 2024, indicating improved asset quality[202]. - Total non-performing loans decreased to $544,000 at December 31, 2025, from $1.1 million at December 31, 2024[224]. - The allowance for credit losses on loans represented 0.45% of total loans at December 31, 2025, compared to 0.46% at December 31, 2024[222]. Loan and Deposit Growth - Loans receivable, net, increased by $9.1 million, or 2.5%, to $376.4 million at December 31, 2025, with loan originations totaling $58.5 million[206]. - Total deposits increased by $1.7 million, or 0.4%, to $393.2 million at December 31, 2025, from $391.5 million at December 31, 2024[207]. - Core deposits totaled $153.4 million, or 39.0% of total deposits, at December 31, 2025[191]. - Average loans receivable, net, increased by $9.9 million, or 2.7%, from the year ended December 31, 2024[217]. Capital and Liquidity - Total stockholders' equity rose by $4.0 million, or 3.2%, to $129.8 million at December 31, 2025, from $125.8 million at December 31, 2024[208]. - Fifth District Bancorp had liquid assets of $19.2 million as of December 31, 2025[247]. - The company maintained a strong liquidity position and anticipated sufficient funds to meet current funding commitments[246]. - At December 31, 2025, Fifth District was categorized as well-capitalized under regulatory capital guidelines[248]. - At December 31, 2025, the company had $35.9 million of outstanding commitments to originate loans, including $17.4 million in HELOCs and $14.2 million in construction loans[249]. Interest Rate Sensitivity - The estimated economic value of equity (EVE) would decrease by 25.90% in the event of a 200 basis point increase in market interest rates[235]. - The estimated net interest income would decrease by 16.57% in the event of a 200 basis point increase in market interest rates[238]. Audit and Compliance - The financial statements of Fifth District Bancorp, Inc. as of December 31, 2024, present a fair view of the company's financial position and results of operations in accordance with U.S. GAAP[262]. - The audit was conducted in accordance with PCAOB standards to ensure the financial statements are free of material misstatement[264]. - The audit opinion confirms that the financial statements are presented fairly in all material respects[262]. - The company has been audited by EISNERAMPER LLP since 2025, ensuring continuity in the audit process[259]. - The audit procedures included examining evidence regarding amounts and disclosures in the financial statements on a test basis[265]. - The overall presentation of the financial statements was evaluated as part of the audit process[265]. - The company is not required to have an audit of its internal control over financial reporting, and no opinion on its effectiveness is expressed[264]. - The audit included procedures to assess risks of material misstatement and evaluate accounting principles and significant estimates made by management[265]. - The company has been served by Elliott Davis, LLC as its auditor from 2023 to 2024, indicating a change in audit firms[266].
Fifth District Bancorp, Inc.(FDSB) - 2025 Q4 - Annual Report