Fifth District Bancorp, Inc.

What they do

The Company was incorporated in February 2024 and became the holding company for Fifth District Savings Bank upon the Bank's conversion from mutual to stock form. It conducts operations primarily through the Bank, a federally chartered savings institution, and is regulated as a savings and loan holding company by the Federal Reserve Board. The Company sold 5,459,473 shares at $10.00 per share in the Conversion and issued 100,000 shares to The Fifth District Community Foundation, Inc.

Revenue drivers

• Net interest income from loans — The Bank held $376.4 million of loans at December 31, 2025, out of $534.4 million in total assets; interest earned on this loan portfolio is the core earnings driver.
• Deposit-funded balance sheet — Deposits totaled $393.2 million at December 31, 2025, providing the primary funding source for the loan and investment portfolios.
• Investment securities portfolio — Investment securities are held alongside loans, and the 10-K risk factors note that changes in the financial condition or prospects of securities issuers could affect results.
• Fee and other noninterest income — Reported annual revenue is small relative to the balance sheet (approximately $605,000 in 2025), indicating a limited noninterest income contribution.

Recent performance

Annual net income swung from $797,000 in 2023 to a loss of $1.1 million in 2024, then to $4.1 million in 2025, with diluted EPS of $-0.21 in 2024 and $0.80 in 2025. Annual revenue was essentially flat across the period: $614,000 in 2023, $619,000 in 2024 and $605,000 in 2025. Operating cash flow followed the same pattern, at $796,000 in 2023, negative $1.1 million in 2024, and $1.3 million in 2025. At June 30, 2026, total assets were $532.1 million, total liabilities $403.1 million, and shareholder equity $129.0 million, with $19.2 million of cash and equivalents.

Strategy

The 10-K describes the Company's stated focus areas as business plans, prospects, growth and operating strategies, and the asset quality of its loan and investment portfolios. The Company is operating as a newly converted stock holding company following the July 31, 2024 Conversion, which raised capital through the sale of 5,459,473 shares at $10.00 per share. As an emerging growth company under the JOBS Act, it may delay adoption of new or revised accounting pronouncements until they apply to private companies. The MD&A frames results in the context of interest rate and margin sensitivity, funding access, and deposit-based liquidity.

Risks

• Interest rate and margin pressure — The 10-K states that inflation and interest rate changes could reduce margins and yields, the fair value of financial instruments, and loan origination volume.
• Credit quality and allowance adequacy — Risk factors cite changes in loan delinquencies and write-offs and changes in estimates of the allowance for loan losses as factors that could materially affect results.
• Funding and liquidity dependence on deposits — The Company identifies its ability to access cost-effective funding and maintain adequate liquidity primarily through deposits as a risk.
• Residential real estate exposure — As a savings institution, the Company cites fluctuations in real estate values and conditions in the residential real estate market, along with demand for loans and deposits in its market area.

Outlook

The filings do not include specific numeric guidance for future periods. Management's forward-looking discussion is limited to stated goals, business plans, growth and operating strategies, and asset quality, all subject to the risk factors listed. No obligation is undertaken to update forward-looking statements after the date of the reports.