Fifth District Bancorp (FDSB) investor relations material

Executive summary

• Net income for 2025 was $4.1 million, a significant turnaround from a net loss of $1.1 million in 2024, driven by higher interest and non-interest income, and stable credit quality.

• Total assets grew 1.3% to $534.4 million, with increases in loans and investment securities offsetting declines in cash and bank-owned life insurance.

• The loan portfolio remains concentrated in fixed-rate one- to four-family residential mortgages, with moderate growth in commercial and industrial lending.

• Asset quality remained strong, with nonperforming assets at 0.11% of total assets and allowance for credit losses at 0.45% of total loans.

Financial highlights

• Net interest income rose 27.8% to $12.8 million, as the net interest margin improved to 2.55% from 2.13% year-over-year.

• Non-interest income surged to $4.4 million, mainly due to a $3.5 million gain on bank-owned life insurance proceeds.

• Non-interest expense increased 2.9% to $13.1 million, primarily from higher salaries and benefits, offset by lower charitable contributions.

• Return on average assets was 0.76% and return on average equity was 3.17% for 2025.

• Total deposits increased slightly to $393.2 million, with certificates of deposit comprising 61% of total deposits.

Outlook and guidance

• The company plans to continue focusing on originating fixed-rate residential mortgages and growing commercial and industrial loans to diversify revenue.

• Efforts will persist to increase core deposits and maintain strong asset quality through conservative underwriting.

• Management anticipates sufficient liquidity and capital to support ongoing operations and growth initiatives.