Fifth District Bancorp Reports 357.7% Increase in Net Income for Q2 2025

Fifth District Bancorp, Inc. reported a significant increase in financial performance for the second quarter of 2025, with net income reaching $3.1 million, a 357.7% increase compared to $683,000 in the same period last year. For the six months ending June 30, 2025, the company recorded a net income of $3.2 million, a substantial turnaround from a loss of $449,000 in the prior year. This improvement was driven by a rise in interest and dividend income, which increased by 18.1% to $5.5 million for the quarter, and a notable increase in non-interest income, primarily due to a gain on bank-owned life insurance proceeds.

Total assets for Fifth District Bancorp increased by 2.4% to $539.8 million as of June 30, 2025, up from $527.3 million at the end of 2024. This growth was attributed to a $12.3 million increase in loans receivable, net, and a $7.4 million rise in investment securities available-for-sale. However, cash and cash equivalents decreased by 27% to $27.7 million, reflecting the company's strategy of investing in higher-yielding assets and originating new loans, particularly in the construction sector.

The company also saw a 1.7% increase in total deposits, which rose to $398.2 million, driven by new customer activity and a shift from lower-yielding money market accounts to certificates of deposit. The increase in deposits included a $5.7 million rise in certificates of deposit, indicating a positive response from customers to the bank's offerings. Additionally, total stockholders' equity increased by 4.1% to $130.9 million, bolstered by retained earnings from the current year's net income.

Operationally, Fifth District Bancorp has focused on expanding its loan portfolio, with total loans receivable increasing to $379.6 million. The company reported a diverse growth in various loan categories, including a $5.1 million increase in construction loans and a $3.4 million rise in commercial loans. The allowance for credit losses remained stable at $1.7 million, representing 0.44% of total loans, indicating effective risk management practices.

Looking ahead, Fifth District Bancorp remains optimistic about its growth trajectory, emphasizing its commitment to maintaining strong liquidity and capital levels. The bank is well-capitalized under regulatory standards and is focused on leveraging its operational strategies to navigate potential market fluctuations. The management's outlook suggests a continued focus on enhancing customer engagement and expanding its market presence in the greater New Orleans area.