Fifth District Bancorp Reports $78,000 Net Income, Significant Recovery from Previous Year

Fifth District Bancorp, Inc. reported a net income of $78,000 for the three months ended March 31, 2025, a significant recovery from a net loss of $1.1 million during the same period in 2024. This turnaround was driven by a 21% increase in interest and dividend income, which rose to $5.2 million, compared to $4.3 million in the prior year. The increase in interest income was primarily attributed to higher yields on loans and investment securities, reflecting the rising interest rate environment. Net interest income also saw a substantial increase of 43.4%, reaching $2.9 million, up from $2.0 million in the previous year.

In terms of operational metrics, Fifth District Bancorp experienced a 2.5% increase in net loans receivable, which rose to $376.3 million from $367.3 million at the end of 2024. The bank's total assets increased slightly by 0.7% to $531.1 million, driven by a $3.2 million rise in investment securities available-for-sale. Deposits also grew by 0.7%, totaling $394.4 million, with notable increases in NOW accounts and savings accounts, while certificates of deposit saw a modest rise.

The company’s non-interest income improved significantly, totaling $262,000 for the first quarter of 2025, compared to a loss of $897,000 in the same quarter of 2024. This improvement was largely due to the absence of realized losses on investment securities, which had negatively impacted the previous year's results. However, non-interest expenses increased by 15.5% to $3.1 million, primarily due to higher salaries and employee benefits, as well as increased occupancy and equipment costs.

Fifth District Bancorp's strategic developments included the ongoing integration of its operations following its conversion from a mutual to a stock organization in July 2024. The company has also established an Employee Stock Ownership Plan (ESOP), which purchased shares of the company’s common stock, further aligning employee interests with those of shareholders. The bank continues to focus on expanding its loan portfolio, particularly in commercial real estate and single-family mortgages, as part of its growth strategy.

Looking ahead, Fifth District Bancorp remains optimistic about its financial performance, citing a strong liquidity position and a well-capitalized status under regulatory guidelines. The company plans to continue monitoring market conditions and adjusting its strategies accordingly to maintain its growth trajectory and manage interest rate risks effectively.